Open Source Investment Rose 131% in 2006

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The amount of venture capital funding invested in the Linux and open source-related vendors tracked by Computer Business Review rose 131% in 2006, vastly outpacing the IT market as a whole.

According to figures collated by Computer Business Review from vendor statements, venture capital companies ploughed $404.5m into Linux and open source-related vendors in 2006, compared to $175.1m in 2005.

There were more deals struck - some 34 in 2006, compared to 22 in 2005 - but the average deal size was also larger this year at $11.9m, compared to just $8.0m in 2005.

While the total invested in open source vendors is dwarfed by the market as a whole, with $13.1bn invested in all IT vendors tracked by Computer Business Review so far this year, open source is clearly a growing sector of the market for investors. Overall the market rose only 8.3% from $12.1bn.

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