COSS Weekly, Issue #1: 💥September 25th, 2020
Welcome to the first issue of the COSS Weekly, the global Commercial Open-Source ecosystem newsletter brought to you every Sunday by Joseph Jacks and team at COSS Media, OSS Capital and the organizers of Open Core Summit.
For context, COSS (Commercial Open-Source) refers to any company that would not exist without the co-existence of a given Open-Source core technology…COSS is abstract and agnostic to any business model, license model, relationship between project < - > company or any other detail.
Why COSS Weekly? 💡
However, the world has only recently been able to observe since 2010 a kind of very new “critical mass materialization” of COSS companies that have achieved a range of scalable ($50M+ and $100M+ revenue) business models.
Coinciding with this catalytically historical timeframe, the following major milestones have been reached, among many others:
COSS has grown 20X+ in aggregate value from only $10B~ (vastly attributable to a single company: Red Hat) to $200B~ today (attributable to now 50+ unicorns and many decacorns)
$4 Billion + in equity funding (from public and private markets) has been poured into all stages of COSS in just 2019 and 2020 (so far) alone
$90 Billion + in company exits, IPOs, liquidity events to-date, mostly since 2018
$18 Billion + in revenue annually is now generated by COSS companies
More than 10 COSS companies now employ 1,000+ people each
Nearly 10 COSS decacorns now exist (companies worth $10B+ each)
Since November 2019, many major VC firms have established public statements and resources, services and value propositions targeted at COSS founders: A16z, BVP, Accel, Lightspeed and others
What To Expect? 🤔
If you are an enterprise buyer, founder, executive, investor, analyst, blogger and/or working in tech curious about learning about the intersection of Open-Source, capitalism and startups, COSS Weekly is tailor-made for you!
In this our first newsletter, we will be sharing all the major COSS news that happened in 2020. So, this will be a very heavy edition. Starting with our 2nd edition next Sunday, we will only include weekly events.
Each week, we will neatly summarize (designed for < 5 min of high-level consumption) and provide direct links on the absolute latest happenings in COSS, often including objective commentary across primarily the following four areas: Funding, Content, Liquidity, Data.
💰 COSS Funding: Stage-agnostic, Seed to Series Z financing events (VC and private equity)
📚 COSS Content:Learn from how enterprise customers are embracing COSS on the customer-side… how VC firms like GGV, BVP, a16z and many others are evolving and shaping their views on COSS...how founders share their insights on building COSS companies…+ more
💸 COSS Liquidity: M&A, IPOs + more
📈 COSS Data: This is a special data-driven section in our first issue introducing you to a number of data-driven resources we maintain that seek to quantitatively answer the following questions:
- How is the accelerator landscape evolving?
- How much money have COSS startups raised?
- Who are the largest COSS companies?
- How is AWS doing in COSS?
- Which investors are the most experienced in COSS?
🌐 YC COSS: For the first time ever in 2020, 15~ COSS startups have gone through YC in a single year representing 30%+ of the total (50~ since 2006). Our YC COSS dataset tracks and provides granular data on the growing but still small COSS YC alumni.
🏦 COSS Funding 2020: This dataset tracks the latest funding events for all stages of COSS companies, mostly in private markets. For 2020-2021+
📊 COSS Index: The well-known COSSI sheet for the exclusive $100M+ revenue club of COSS companies. New data points and growth happening weekly.
🌩️ AWS COSS: Lists COSS services on AWS. Continuously evolving. We plan to offer similar datasets for Azure, GCP and other major clouds.
🤑 COSS VC: Early-Stage VCs with > 5 COSS investments as a filter to identify and highlight the “most experienced” COSS investors. Fast growing list.
💰 COSS Funding
Before reading the major funding highlights below (10+ VC deals > $40M each, for this issue only), here is the full COSS Funding 2020 sheet including all (undisclosed) funding events for 2020, large and small:
$250M Series E led by Coatue, April 2020, into: Confluent, founded in 2014, creators and commercializers of the Open-Source Apache Kafka project. Confluent is now 1,000+ people and is rumored to be approaching a $400M+ revenue run-rate next year. Link
$175M Series E led by Franklin Templeton, March 2020, into: HashiCorp, founded in 2012, creators and commercializers of the Open-Source Vagrant project initially, and now crucially the Terraform, Vault, Nomad, Consul and Packer technologies. HashiCorp has now also crossed 1,000+ people and is rumored to be approaching a $500M+ revenue run-rate next year. Link
$105M Series E led by GPI Capital, May 2020, into: Couchbase, founded in 2011, creators and commercializers of the Open-Source Couchbase project fka CouchDB/Membase in 2005. Link
$100M Series F co-led by Bain Capital and TVC, August 2020, into: Redis Labs, founded in 2011, creators and commercializers of the Open-Source Redis project. Link
$93.5M Series E led by Riverwood, April 2020, into: ForgeRock, founded in 2010, creators and commercializers of the Open-Source OpenAM, OpenIG, OpenIDM, and OpenDJ projects. Link
$90M late-stage “Series C” round led by Summit Partners, December 2019, into: Odoo, founded in 2005 in Belgium, makers of Java-based Open-Source enterprise application technologies in the ERP, HCM, CRM and more categories. Odoo is now 1,000+ people and well past $200M+ revenue. Link
$87M Series D led by Altimeter, May 2020, into: Cockroach Labs, founded in 2015, creators and commercializers of the Open-Source CockroachDB project. Link
$50M Series B led by Lightspeed, August 2020, into: Grafana Labs, founded in 2014, creators and commercializers of the Open-Source Grafana technology launched the same year 6 years ago. Link
$70M Series C led by Insight Partners, March 2020, into: Dremio, founded in 2015, creators and commercializers of the Open-Source Apache Arrow project released the same year. Link
$61M Series E led by SK hynix, August 2020, into: Sifive, founded in 2015, creators and commercializers of the Open-Source RISC-V computer architecture chip standard introduced in 2010. Link
$42M Series B led by Coatue, June 2020, into: Starburst Data, founded in 2017, commercializers of the Open-Source Presto technology launched by Facebook 6 years ago. Link
$40M Series B led by IVP, Feb 2020, into: Aiven, founded in 2016, commercializers of the Open-Source Apache Kafka, Apache Cassandra, Elasticsearch, PostgreSQL, MySQL, Redis, InfluxDB and Grafana projects. Link
📚 COSS Content
Timescale founder/CEO Ajay Kulkarni blogged about new permissive rights for their source available product built atop their Open-Source core. This represents some more evolutionary thinking about source available license models and commercializing OSS in the cloud. Link
Morningside VC’s (China-based and focused fund) Peter Chen created a GitHub page inspired by our COSSI dataset: Link
Matt Turk of FirstMark VC firm interviewed the great Mike Volpi of Index Ventures: Link
Konstantin Vinogradov of Runa Capital published some perspectives on benchmarking some of the early promising COSS startups: Link
OSS Capital partner Kevin Xu blogged on Wired about the criticality of Open-Source itself for American Industry: Link
OSS Capital founder Joseph Jacks was interviewed by Managing Director David Linthicum of Deloitte: Link
GGV managing director Glenn Solomon and HashiCorp founder Mitchell Hashimoto podcast on remote-culture scaling through to 1,000+ people: Link
GGV managing director Glenn Solomon produced an incredibly rich series on Forbes covering his thoughts on the next $1 Trillion software wave: Link
BVP (Bessemer Venture Partners) shared their structured thoughts on COSS: Link
HeavyBit had Sid the co-founder of GitLab over to share about COSS: Link
TechCrunch interviewed some generalist VCs on how they see COSS: Link
Balderton Capital and GitPod have jointly created the OS4B conference and resource for COSS in Europe: Link
Accel has started producing mini online events with some of their COSS portfolio companies and others, while also creating a ranking list of categorizing COSS companies by layer-in-the-stack: Link
Red Hat is launching a new webinar series focused on Open-Source in the context of business, likely to include a lot of great COSS material: Link
Don’t forget to catch up on the creator series and much more that we published over the last year at COSS Media: Link
💸 COSS Liquidity
Well north of $3 Billion exchanged hands in liquidity land over the last year across 2 COSS IPOs and 10+ COSS M&A transactions:
JFrog, COSS company behind the Open-Source Artifactory software repository tool went public raising $400M~ in their IPO now trading at a $6.7B valuation: Link
Rackspace, COSS cloud provider and platform powered by the Open-Source OpenStack project went public raising $700M, currently trading and valuing the company at $3.6B: Link
SUSE acquires Rancher Labs, creators and commercializers of the Rancher project, for $600M+: Link
Vista Equity is rumored to have paid $400M+ for a controlling stake in Sonatype, COSS company behind the Open-Source Nexus repository project: Link
Equinix acquired Packet, creators of Open-Source primitives and tooling to run bare-metal platforms, for $335M: Link
Pure Storage acquires Portworx, creators of Open-Source middleware for storage driven containerized applications, for $370M: Link
Progress acquires Chef Software, creators and commercializers of the Open-Source Chef configuration management tool for $220M: Link
NVIDIA acquires the company behind Cumulus Linux, Cumulus Networks, for what is rumored to be a fair valuation close to what the company raised ($170M~): Link
PagerDuty acquired Rundeck, creators and commercializers of the Open-Source Rundeck runbook automation project, for $100M: Link
Splunk acquires Streamlio, early-stage COSS company built by the creators of Apache Heron, for an undisclosed amount, previously raising $7.5M from Lightspeed: Link
NVIDIA acquired Swiftstack, creators and commercializers of the Open-Source Swift storage project, for an undisclosed amount: Link
High-growth Brazilian challenger bank NuBank acquired Cognitect, creators and commercializers of the Open-Source Clojure programing language: Link
As usual, we end with this graphic depicting what we think the next Multi-Trillion-Dollar category in business will be:
Don't forget to sign-up for the second-annual FREE Open Core Summit 2020 Digital to meet with and learn from the leaders in COSS (enterprises, founders, investors, executives and more) on December 16-18th, 2020:
1 mission. 3 days. 10 tracks. 150+ speakers. 10,000+ attendees.