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VC funding for OSS-related vendors down 38% in Q3Matthew Aslett, October 7, 2010 @ 11:45 am ET
Venture capital funding for open source software-related vendors fell 38% in the third quarter, following three consecutive quarters of positive growth.
UPDATE – To put this is some sort of perspective, Venture Beat reports that Q3 was the lowest quarter for VC investments in any field since 2Q09 – UPDATE
According to our preliminary figures, OSS-related vendors raised $65.8m in Q3, compared to $105.9m a year ago. There were 10 deals in the quarter, all with a disclosed deal size, down from 19 total and 18 disclosed in 2Q09, resulting in an average deal size of $6.6m in 3Q10, compared with $5.9m in 3Q09.
Early stage deals announced in the quarter included $10m for Whamcloud and $5m for VoltDB. Later stage deals included $11.6m for Sonatype, $7.5m for EnterpriseDB, $5.5m for Morph Labs, and $5m for Puppet Labs.
The biggest round announced in the quarter was Joyent’s $15m series C round, Intel Capital, with additional support from existing investor Greycroft Partners and new investor Liberty Global.
Total funding for the first three quarters of the year stands at $292, compared to $297.6m in the first three quarters of 2009. It now seems likely that our prediction of flat growth for the full year was optimistic.
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