Linux Journal: Linuxcare Looks AheadDec 16, 1999, 02:26 (0 Talkback[s])
(Other stories by Doc Searls)
"Every company has two markets: one for its goods and one for itself, one for its customers and the other for its investors. Linuxcare, Inc. appears to be doing very well at both. While the Linux service company has announced a $32.5 million second round of funding from investors, the more significant number is the size of the investment community's interest in the fast-growing company. According to Fernand Serrat, President and CEO of Linuxcare, "We had a total of over 300 million dollars offered to us."
"It was an interesting thing," he continued, "because the process of pricing went something like 'X amount is what was suggested. And I said 'no way, no how. I want to talk to a couple of banks.' And we ended up doing four times that X amount that was suggested. And then we find ourselves still with $300 million. Obviously we were still underpriced. So we are not even catching up with the speed at which the market is viewing our progress."
"That's the financial market, of course. The services market--where Serrat calls his company "the only pure play"--is doing a good job of providing that progress. The company has quickly built a who's who list of Fortune 500 customers."