Abstract
A growing body of literature has explored the motivation of firms to take part in open source software (OSS) development, yet the role of venture capitalists and their role in OSS projects is largely unattached. Based on information from publicly available data, we investigated the investment behavior of 37 VCs investing in 45 OSS projects. To understand how these venture capitalists try to reduce their perception of uncertainty and risk, we developed a 2 × 2 matrix of different investment approaches. While the X-axis represents the average age of a community/OSS product at the time of investment, the Y-axis reflects the average round of a venture capitalist's entry. This exploratory study illustrates how venture capitalists limit the level of risk inherent in certain OSS investments and results in a number of implications for communities seeking for external funds as well as for investing firms.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Innovation and Technology Management
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
