Press Release: August 23, 1999
COLLAB.NET RECEIVES FUNDING FROM BENCHMARKSAN FRANCISCO, CA--Collab.net, Inc. has received initial funding from Benchmark Capital. Founded in May 1999 by President and CTO Brian Behlendorf, co-founder of the Apache Software Foundation, and O'Reilly & Associates, Collab.net provides scalable services and infrastructure for the development of Open Source software.
Collab.net's first project, sourceXchange, is a dynamic marketplace for the funding of Open Source software projects (http://www.sourceXchange.com). In its first week of operation, sourceXchange has posted seven RFPs (Requests for Proposals) from founding sponsor Hewlett-Packard and signed up over 2000 Open Source developers. Other Collab.net services under development will be announced in Fall '99.
"We're believers in the business opportunities created by Open Source," said Kevin Harvey, general partner, Benchmark. "Like Red Hat, another Benchmark investment, Collab.net's business model adds real value to the Open Source development process. The deep understanding of Open Source's potential brought by Brian Behlendorf and O'Reilly & Associates sets Collab.net apart from other ventures, and puts them at the forefront of the next big Internet wave--eServices."
"With this investment, we'll hire a complete team to flesh out both the sourceXchange offering and our followup services, and build a professional site that serves both the business and the Open Source communities," said Behlendorf. "Building this community and this service will not be easy work. While Benchmark's investment doesn't take away the challenge, it does enable us to face it head-on."
"Benchmark is the ideal partner for Collab.net," said Mark Jacobsen, O'Reilly's VP of New Ventures. "They understand the Open Source opportunity, and their support adds credibility to this emerging market. We're pleased to have their backing."
Collab.net provides scalable services and infrastructure to support and promote the development of Open Source software in a manner that benefits developers, sponsors, and users of the resulting software. Created by Brian Behlendorf, co-founder of the Apache Software Foundation, and O'Reilly & Associates, the company's first project is sourceXchange, a marketplace for Open Source software development. For more information, see www.collab.net.
Benchmark Capital was founded in 1995 with the mission of helping talented entrepreneurs build major technology enterprises focused on long-term growth. Benchmark takes a labor-intensive, team-oriented approach to venture investing in order to deliver a superior level of service to its portfolio companies. Benchmark's portfolio includes franchise companies such as Ariba (NASDAQ: ARBA), Critical Path (NASDAQ: CPTH), E-Loan (NASDAQ: EELN), eBay (NASDAQ: EBAY), Genesys Telecommunications Labs (NASDAQ: GCTI), Northpoint Communications (NASDAQ: NPNT), Red Hat (NASDAQ: RHAT) and Scient (NASDAQ: SCNT). Managing more than $400 million in committed venture capital, Benchmark focuses on early-stage investing in markets where the partners have directly relevant experience. These markets include consumer devices, e-commerce, application services, networking equipment, semiconductor, software, and telecommunications services. For more information on Benchmark, visit their Web site at www.benchmark.com.