Report: 37% less VC funding for open source in 2009
The 451 Group's analysis of venture capital funding for open source vendors in 2009 has been published and finds that over the year $373.4M was provided to companies, down 37% on 2008.
"The decline was not as actually as steep as I or others had predicted" said 451 Group's Matthew Aslett. He noted that open source vendors fared better compared to the software sector as a whole in terms of investment. The headline figures show a 25% drop in the number of venture capital deals and a drop in the average deal size of 37%.
According to the report, since 1997, when Cygnus Systems received their first venture capital funding, to 2009, over $3.6 billion has been invested in open source vendors. Over the same period, 181 vendors made 453 deals with 7 vendors going public with an IPO, 46 being acquired and 10 ceasing trading. The full report, Open to Investment 2010, which includes detailed analysis of all the deals in 2009 costs $3,750.00.