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VCs Regain Interest in Open Source

Mar 08, 2008, 13:00 (0 Talkback[s])
(Other stories by Bruce Byfield)

"Venture capitalists (VC) first discovered open source during the dot-com bubble at the turn of the millennium. When the bubble burst, open source was connected closely enough with its general failure that all but a handful of VCs lost interest. In the last few years, however, investor interest has started to return, due to growing acceptance of open source software and the success of existing open source companies. What now attracts investors to open source companies, VCs say, is the higher probability of innovative ideas and quicker time to market, as well as the ability to develop niche markets that were previously too small to develop profitably. If they see that the fundamentals for any successful business are in place, investors are finding firms founded on open source well worth considering..."

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