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RedHerring: Covalent convalesces in Bay Area

Dec 21, 1999, 14:42 (0 Talkback[s])

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"A small Lincoln, Nebraska, consulting group, specializing in a wildly popular and free computer program, is moving west with dreams of hitting the big time."

"Covalent Technologies is taking its $5 million first-round venture funding and setting up headquarters in San Francisco. It hopes to cultivate a services business for an open-source Web server application called Apache. The free software is being developed by a loose confederacy of programmers, in a similar fashion as Linux. H&Q Venture Associates led the funding round. The venture arms of graphic design software vendor Adobe Systems (Nasdaq: ADBE) and semiconductor maker Texas Instruments (NYSE: TXN), Adobe Ventures and Texas Instruments Ventures, also participated in the funding round."

"Large organizations need a support organization to call when working with Apache, says Randy Terbush, Covalent's founder, president, CEO, and chief technical officer. Apache, which is compatible with dozens of server operating systems, delivers Web content when users enter Internet addresses into PCs using Internet browsers. Mr. Terbush says Covalent is the only company that provides support services totally focused on Apache, which it's been doing since October.Linux distributor Red Hat (Nasdaq: RHAT) and Linux system maker VA Linux Systems (Nasdaq: LNUX) also provide support for Apache. Mr. Terbush says he considers these companies potential partners and that he's already begun talks with them about possible alliances."

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