VC FOSS Funding Fluxing

Not that this is a surprise considering the state of the economy, funding is down for the quarter. I might expect that trend to continue for several quarters as well. Nothing more than the overall belt tightening that happens in a recession. –

It will probably come as little surprise to anyone to hear that the amount of - publicly disclosed - money invested in open source vendors in the third quarter was down on the same period last year. $76.5m was raised by open source vendors in Q3, down 12.2% on $87.2m in the same quarter of 2007.

The decline is not exactly unexpected. The overall market was down nearly 6% according to figures from The National Venture Capital Association and Thomson Reuters, while there was bound to be some hangover for open source following the most successful quarter ever in Q1 and solid growth in Q2.

Meanwhile it also worth noting that the figures for open source funding are prone to larger swings than the overall market as the total value is much smaller and the failure of one deal can have a significant impact.

More detail over at 451 CAOS.