Open-Source Startups and VCs Craft a New Model for Success

Today’s open-source software startups are trying a new tack to gain adoption, after the first generation mainly failed to successfully launch. That first generation sold services to support technology widely available on the Internet, but very few of them — Red Hat, with its $2 billion in annual revenue is one exception — were able to scale up. The new approach involves providing free software to users, followed by proprietary products that work with that software; VC firm Accel Partners is now funding some of these companies. Continue reading Open-Source Startups and VCs Craft a New Model for Success