Commercial Open Source Software
Open source solutions are transforming the way software applications are developed and deployed as they help enterprises minimize the cost of application development and avoid vendor lock-in. Commercial Open Source Software (COSS) is any type of program or application that developers can inspect, copy, modify, and redistribute. There is a clear path that defines COSS prerequisites to commercial success, proven licensing and monetization models that are producing a growing number of tech unicorns.
Open Source Software companies are highly investable at all stages from early stage VC to growth capital through IPO / Strategic Exit. In an already robust investment category, annual invested capital in open source startups identified in our landscape reached $3 billion in 2020. In just the past two years, there has been over $80 billion in liquidity value generated from the acquisition, merger, and IPOs of open source software-based businesses, according to Bessemer Venture Partners.