The once polarizing world The open source software has recently become one of the hottest targets for VCs.
As the popularity of open source among organizations and developers increases, startups in space have reached new heights and monstrous ratings.
In recent years, we have seen emerging open-source companies like Databricks gain unicorn status, as well as VCs that have undergone transactions such as following a series of exits involving open source and dev tool companies the acquisition of IBM or Red Hat completed the IPO of Elastic at the end of 2018. Last year, The exit spree continued with transactions like that of F5 Networks. acquisition from NGINX and a number of high profile acquisitions of mainstays such as Microsoft and GitHub,
Similarly, venture investments in new start-ups in the area have continued to increase. According to Crunchbase, more and more investors are trying to find the next big payout. The capital invested annually in open source and dev tool startups has increased over the past five years at an average annual growth rate (CAGR) of around 10%. In addition, attractive returns seem to be fueling the fire as open source and dev tool startups invested more than $ 2 billion per crunchbase data in 2019 alone.
To conclude another strong year for innovation and risk investment in this sector, we asked 18 of the leading open source VCs working in companies that are in an early stage of growth to report what excites them most where they see opportunities. For the sake of length and clarity, the answers were edited and split into part 1 (in no particular order) and Second part this poll. In part 1 of our survey we hear from: