Subject: Re: Valuation of Open Source companies
From: Laurent GUERBY <>
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:
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.