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Open source funding up 131% in 2006
December 15, 2006

I am putting together a news story for Computerwire/CBRonline based on the amount of venture capital funding invested this year in the Linux and open source-related vendors we track. The key statistic: open source funding was up 131% to $404.5m in 2006.

Not surprisingly there were more open source funding deals struck in 2006 – 34 in total - than in previous years, while the average deal size also rose, to $11.9m.

Linux software appliance vendor rPath set the tone in January by landing $6.4m in funding from North Bridge Venture Partners and General Catalyst Partners, while embedded Linux specialist MontaVista ensured the year ended with a bang by raising $21m earlier this month.

Linux supercomputing vendor Linux Networx gets the gong for the most funding raised in a single round, collecting $37m in September from the likes of Lehman Brothers and Canaccord Adams, as well as Oak Investment Partners and Tudor Ventures.

Look out for more details when the story is published early next week, but in the meantime here’s another quick stat: the total money raised by all the open source and Linux-related vendors tracked by CBR since the beginning of 2000 is now $963.0m.


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Posted by Matthew Aslett on December 15, 2006 12:28 PM

Comments

I got to thinking about what this all means. What’s the impact of giving investors (who expect big returns) a larger say in OSS vendor operations? Is this good for the open source market, or just a step along the path towards a joint OSS & traditional software business model? So, I called up a friend in venture capital and something he said made me think. He said: "Everyone’s hoping to either become the next Red Hat or get sold to IBM or Oracle."

Read more here:
http://saviorodrigues.wordpress.com/2006/12/18/what-does-more-open-source-funding-mean/

Savio
http://saviorodrigues.wordpress.com/

Posted by: Savio Rodrigues on December 18, 2006 04:23 PM

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