Investors Regain Faith in
Open Source"> "Open source is leading to new business opportunities and new business models," said Bart Stuck, a managing director of Signal Lake Management LLC, an early-stage telecom venture capital fund. Specifically, Stuck said, "The convergence of communications and computers is suggesting that open source is going to play a much bigger role than at present in embedded computing and in wireless applications."What I think is that the people with big-time investment money have shaken off the terrors of the dot-com crash and are seeing that theres real value in open-source businesses. I strongly suspect that stock investors are going to wake up soon to this trend and theyre going to follow those people to the existing Linux and open-source stocks. After all, with open-source businesses like Red Hat seeing year-over-year total revenue increases of 46 percent, the fundamental demand is clearly there. Read more here about Red Hats positive revenue news. If youre on the other side of the fence and you want that investment money, you should make it clear to investors that you have a solid, active business plan for reaching positive cash flow and building your business rather than spending time fundraising or looking for an exit strategy. Yes, thats a very old-fashioned plan, a business that really does business! What a notion after the go-go 90s. But, once burned and twice shy, VCs want real businesses rather than business leaders heading towards the door as soon as they have money in their pockets. Does that sound good to you? Well, then, go out there and get it. The money is out there again. eWEEK.com Senior Editor Steven J. Vaughan-Nichols has been using and writing about operating systems since the late 80s and thinks he may just have learned something about them along the way. He can be reached at firstname.lastname@example.org. Check out eWEEK.coms for the latest open-source news, reviews and analysis.
The VC excitement isnt just about system-level software though. Stuck noted that end-user applications are gaining popularity. "OpenOffice is becoming more and more credible with every passing day, leading to new legacy and modern business opportunities."