CacheLogic is reported to have closed a further round of funding, bringing the total investment in the video distribution start-up company to $50 million. CacheLogic is bidding to take on companies such as Akamai by building its own peer-assisted content distribution network which it calls Velocix and prefers to refer to as a digital asset delivery network.

The fourth round of funding included previous investors Amadeus Capital Partners and 3i. It follows a $20 million investment in July 2006.

Based in Cambridge, England, the company was co-founded in 2002 by chief technology officer Adam Twiss, former head of Zeus Technology, a web server company started in a college bedroom back in 1996. CacheLogic is now led by chief executive Phill Robinson, who was previously chief marketing officer with customer relationship management software company

As previously reported by informitv, CacheLogic has been linked to proposals floated by the BBC to install caches at third party service providers to support its broadband video services.

Establishing a large scale distribution network is a major undertaking that requires significant investment. It should be noted that $25 million is still a relatively modest sum, in the context of established companies like Akamai, which has a market cap of nearly $5 billion, or incumbent telecommunications companies that have revenues in the billions and invest in infrastructure accordingly.