Feds invest in Niagara-area Internet startup

A Niagara-area Internet startup will benefit from some cash from the federal government to help it bring its technology to market.

The Government of Canada, through FedDev, is investing in IIX Corp. (International Internet Exchange) of St. Catherines, Ont. to help it commercialize its Internet technology, which allows users to send large amounts of information more directly and at lower costs than traditional Internet traffic.

Under FedDev Ontario’s Investing in Business Innovation initiative, IIX will receive up to $225,000 to commercialize and enhance the hardware and software infrastructure for its network of Internet exchange points (IXPs) – technology that routes digital information more directly between high-volume users than traditional Internet service providers’ methods.

According to the company, routing information through IXP networks results in fewer errors, decreased user costs and increased traffic speeds.

The FedDev investment has also helped IIX attract private investment of up to $450,000 from members of the Niagara Angel Network and the Golden Triangle Angel Network.

IIX created North America’s first independent network of IXPs, called IIX Grid, in 2011. This project will build on the success of that network by expanding capacity for its users and will position the company to increase its North American market share.

“We’re focused on expanding our IIX Grid solution across North America to enable more organizations to participate in direct network peering in multiple markets,” said Al Burgio, CEO of IIX Corp., in a statement. “FedDev Ontario’s investment will contribute to our ongoing expansion and the delivery of our solution across our industry.”

A video created by the European Internet Exchange Association explains how Internet exchanges work.

Source | International Internet Exchange


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