PPStream is making headlines around the China’s Internet industry again by raising $10 million in a round B financing, venture capitalists included Ceyuan Ventures and Qiming Venture Partners, according to an economics newspaper in China. PPStream founded in 2005 (brief overview was covered in my another post) secured few million in round A from Ceyuan Ventures when it officially launched in the market. This round B of financing will thus rapidly visualize their product ideas and dreams in China. Industry pundits had questioned whether the funding on this type of P2P companies such as Xunlei and PPStream is the risky investments by Ceyuan Ventures (Note: Ceyuan Ventures and Google jointly invested $20 million on Xunlei; Read my another post: “Google China Invested in Xunlei“) as the return of Investment (ROI) may deter to a few more years. However, few people can doubt the rising popularity of PPStream and Xunlei in becoming the Internet’s “killer applications.” Until now, PPStream had secured the partnerships with SMG, Phoenix TV, Sina TV, Yahoo! China, ESPN China, and etc.

There are few implications of this financing: it mean that China is not an Internet auxiliary market anymore, and it is a testament for PPStream’s success in China as well. On the other hand, local venture capitalists that set up their offices in China have always gain competitive advantage in spotting good ventures. Also, despite the China’s Internet market is fragmented, the offering of P2P services in China is hot; most of the players selling their services like hot cakes. But I wonder with this round of financing, is PPStream preparing itself to go public in the near future?