Video-helping backbone company, CacheLogic, raises $20 million

CacheLogic, the company that helps manage video transmissions over peer-to-peer networks, has raised $20 million in venture capital.

The UK company, which just opened an office in Silicon Valley’s San Jose, sells “cache” appliances to Internet service providers. Recently, the UK’s largest cable company, NTL, acquired Cachelogic’s technology to help manage the traffic on its network produced by the largest peer-to-peer file-sharing company, BitTorrent.

Until now, service providers have had a difficult time keeping track of all the file-sharing content out there.

CacheLogic’s product monitors file transfers: If a file being transferred is already held in a service provider’s cache, the file is served from the cache, saving costs. If a transferred file is not held in cache, Cachelogic’s product allows the transfer to take place, but saves a copy to cache, and thus builds up a library of popular files — thus potentially helping a player like BitTorrent deal with new threats like RedSwoosh, which use a more centralized management technology.

Amadeus Capital Partners led the round, and was joined by existing investor 3i, Pentech Ventures and The Cambridge Gateway Fund.

The news comes barely a week the company appointed a new chief executive, Pat Chapman-Pincher, previously an executive at UUNET.

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