We just announced a new investor and a new round of funding for Palamida. The new investor is Mitsui Venture Partners. They, along with our current investors – Hummer Winblad and Walden VC – invested $8M in our second round of funding.
It is a big milestone for us, and I’m very pleased. It’s a tribute to the dedication and hard work of our team at Palamida. So thanks to everyone on the Palamida team…it’s been quite a year.
I’m pleased to welcome Richard See and Dave Takeuchi from Mitsui to our team. Dave has already hosted a trip to Japan for us, and I’m very excited by Mitsui’s reputation and network. They will be a great partner and investor as we expand internationally.
We closed the investment almost exactly on my one year anniversary with Palamida – sort of a nice anniversary present. But more than that, it’s a vote of confidence for our team and for the opportunity in the new market that we serve.
During my recent trip to Japan, I had the opportunity to speak at the New Industry Leaders Conference. There I talked about the two themes that are driving the software industry today – Web 2.0 and open source. Just as Web 2.0 is moving the Web experience from publishing to participation, open source is changing software development and software business models in the same way. The community of registered users on SourceForge is now 1.3 million – up 30% from a year ago. The number of projects during the same time is up 17%. A Forrester report from 2005 suggests that 75% of the companies surveyed either use or plan to use open source – I bet that is 85% or greater this year. And major companies continue to contribute important projects: Eclipse from IBM for example – and soon I hear, even Java from Sun.
There is clearly a new supply chain emerging for software, one that blends software from many sources. The question “what’s in your code?” has never been more relevant. Companies that embrace the new supply chain will be more competitive. And that’s where we come in. Whether it’s for a merger/acquisition (I bet there will be 1800 software M&A events this year btw), part of on-going development, or for compliance and governance purposes, there is an important new application area emerging to leverage the new software supply chain – and bring transparency to the software world. We’re working on some terrific new ideas with some of the best software companies in the business as customers. You can’t ask for much better than that.