Subject: Re: Valuation of Open Source companies
From: Laurent GUERBY <laurent@guerby.net>
Date: Thu, 03 Nov 2005 11:22:55 +0100

Some say that VC fund startup not for potential customers for their
product but based on how much a big company will buy the startup,
in particular Paul Graham:

http://www.paulgraham.com/vcsqueeze.html
<<
Largely because of Sarbanes-Oxley, few startups go public now. For all
practical purposes, succeeding now equals getting bought. Which means
VCs are now in the business of finding promising little 2-3 man
startups and pumping them up into companies that cost $100 million to
acquire. They didn't mean to be in this business; it's just what their
business has evolved into.
>>

IBM bought open source gluecode for an undisclosed amount,
Novell bought some well known Open Source companies,
so big players are buying open source startups, so I assume
it makes some VC confident in this market.

Laurent