VCs regain interest in open source

Posted by Scott_Ruecker on Mar 6, 2008 5:05 PM EDT
Linux.com; By Bruce Byfield
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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.

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