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Open source projects draw equity-free funding from corporates, startups, and even VCs | TechCrunch

Nov 10, 2024 - techcrunch.com
The article discusses the increasing financial support for open source technologies from startups, corporations, and venture capital firms. This includes Bloomberg's FOSS fund, which commits up to $90,000 per year to various projects, and Zerodha's FLOSS/fund, which pledges $1 million annually. Sequoia Capital launched an open source fellowship in 2023 to support project maintainers with equity-free capital. The first two fellows from Sequoia’s expanded program are Chatbot Arena, an open source AI model benchmarking tool, and vLLM, an open source library focused on memory management.

The article also highlights the Open Source Pledge launched by Sentry, which encourages companies to donate at least $2,000 per year for each developer they have on staff to open source projects. The initiative has attracted several corporate members and ecosystem partners, including VC firm Accel. The article suggests that while open source projects can be used for free, users who find them essential are motivated to ensure their sustainability, hence the increasing financial support.

Key takeaways:

  • There is a growing trend of funding for open source technologies from startups, corporations, and venture capital firms due to the vital role these technologies play in their success.
  • Sequoia Capital has launched an open source fellowship to support project maintainers with equity-free capital, and has recently revealed the first two fellows from its expanded program: Chatbot Arena and vLLM.
  • Despite receiving funding, many open source projects, including Chatbot Arena and vLLM, have no plans to evolve into commercial entities, highlighting the need for alternative sources of financing.
  • Sentry has launched the Open Source Pledge to encourage other companies to donate to open source projects, with commitments amounting to at least $2,000 per year for each developer the member company has on staff.
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