[...] More detail over at 451 CAOS. [...]

[...] 451 CAOS Theory » VC funding for open source down 12% in Q3 Via The 451 Group “The decline is not exactly unexpected. The overall market was down nearly 6% according to figures from The National Venture Capital Association and Thomson Reuters, while there was bound to be some hangover for open source following the most successful quarter ever in Q1 and solid growth in Q2.” [...]

[...] Given the fact, that the first quarter of 2008 was the largest ever for open source investments and that second quarter investments were also significant, this reduction is unsurprising. Matt noted that the open source market is small enough so that even one missed deal can effect the statistics.  His analysis also notes that the deals in this quarter are more late stage and the average deal size is larger ($9.6m); only two Series A/Seed deals were announced.  For more information, see Matt’s post. http://blogs.the451group.com/opensource/2008/10/16/vc-funding-for-open-source-down-12-in-q3/. [...]

Not that this is a surprise considering the state of the economy, funding is down for the quarter. I might expect that trend to continue for several quarters as well. Nothing more than the overall belt tightening that happens in a recession.

[...] 451 CAOS Theory » VC funding for open source down 12% in Q3 Via The 451 Group “The decline is not exactly unexpected. The overall market was down nearly 6% according to figures from The National Venture Capital Association and Thomson Reuters, while there was bound to be some hangover for open source following the most successful quarter ever in Q1 and solid growth in Q2.” [...]

[...] an open source vendor should be following, whether it is likely to gain a share of what little funding is available, and whether it is likely to survive current economic [...]