VC Firm Sequoia Capital Begins Funding More Open Source Fellowships (techcrunch.com) 15
By 2022 the VC firm Sequoia Capital had about $85 billion in assets under management, according to Wikipedia. Its successful investments include Google, Apple, PayPal, Zoom, and Nvidia.
And now the VC firm "plans to fund up to three open source software developers annually," according to TechCrunch, which notes it "a continuation of a program it debuted last year." The Silicon Valley venture capital firm announced the Sequoia Open Source Fellowship last May, but it was initially offered on an invite-only basis with a single recipient to shout about so far. Moving forward, Sequoia is inviting developers to apply for a stipend that will cover their costs for up to a year so they can work full-time on the project — without giving up any equity or ownership.... "The open source world is to some extent divided between the projects that can be commercialized and the projects that are very important, very influential, but just simply can't become companies," said Sequoia partner Bogomil Balkansky. "For the ones that can become great companies, we at Sequoia have a long track record of partnering with them and we will continue partnering with those founders and creators."
And this is why Sequoia is making two distinct financial commitments to two different kinds of open source entities, using grants to support foundational projects that might be instrumental to one of the companies it's taking a direct equity stake in. "In order for Sequoia to succeed, and for our portfolio of companies that we partner with to succeed, there is this vital category of open source developer work that must be supported in order for the whole ecosystem to work well," Balkansky added. From today, Sequoia said it will accept applications from "any developer" working on an open source project, with considerations made on a "rolling basis" moving forward. Funding will include living expenses paid through monthly installments lasting up to a year, allowing the developer to focus entirely on the project without worrying about how to put food on the table.
Spotify, Salesforce and even Bloomberg have launched their own grant programs too, the article points out.
"But these various funding initiatives have little to do with pure altruism. The companies ponying up the capital typically identify the open source software they rely on most, and then allocate funds accordingly..."
And now the VC firm "plans to fund up to three open source software developers annually," according to TechCrunch, which notes it "a continuation of a program it debuted last year." The Silicon Valley venture capital firm announced the Sequoia Open Source Fellowship last May, but it was initially offered on an invite-only basis with a single recipient to shout about so far. Moving forward, Sequoia is inviting developers to apply for a stipend that will cover their costs for up to a year so they can work full-time on the project — without giving up any equity or ownership.... "The open source world is to some extent divided between the projects that can be commercialized and the projects that are very important, very influential, but just simply can't become companies," said Sequoia partner Bogomil Balkansky. "For the ones that can become great companies, we at Sequoia have a long track record of partnering with them and we will continue partnering with those founders and creators."
And this is why Sequoia is making two distinct financial commitments to two different kinds of open source entities, using grants to support foundational projects that might be instrumental to one of the companies it's taking a direct equity stake in. "In order for Sequoia to succeed, and for our portfolio of companies that we partner with to succeed, there is this vital category of open source developer work that must be supported in order for the whole ecosystem to work well," Balkansky added. From today, Sequoia said it will accept applications from "any developer" working on an open source project, with considerations made on a "rolling basis" moving forward. Funding will include living expenses paid through monthly installments lasting up to a year, allowing the developer to focus entirely on the project without worrying about how to put food on the table.
Spotify, Salesforce and even Bloomberg have launched their own grant programs too, the article points out.
"But these various funding initiatives have little to do with pure altruism. The companies ponying up the capital typically identify the open source software they rely on most, and then allocate funds accordingly..."
A lot of words (Score:3)
That's a whole hell of a lot of words for basically saying "they've employing 3 researchers / year, who get to keep their research"
This honestly feels more like an experiment for the firm than anything else... oh, and a publicity stunt for sure!
Re: (Score:1)
You're probably right that it's both of those things too, but it doesn't change the fact that they're also right that this type of investment in the open source ecosystem itself is necessary for its long-term sustainability, and directly beneficial to huge sectors of the actual money-making parts of the economy. It sets a good example precedent and hopefully will influence more investors to do the same, regardless of how paper-thin their veil of altruism may be.
Re: (Score:3)
In the 90s, open source was random people building software for fun in their spare time, because they can, to scratch an itch, or because they were inspired. There was no plan and no goal beyond making the best software that wasn't limited by what corporations wanted it to be.
Nowadays large "open source" projec
Re: (Score:2)
Because in the 90s, open source wasn't funded by corporations
I spent most of the 90s working for a corporation that funded open source development.
I was on an O'Reilly panel with people from a dozen other companies doing the same. Several of them had VC funding.
Re: (Score:2)
This is a PR move. (Score:3)
Yep.
They see a writing on the wall when investing in today's big tech giants.
Trying to get early access to next gen big tech looks very different.
This is a PR move.
Re: (Score:2)
"Fellow"? (Score:1, Funny)
Didn't these idiots invest a ton in FTX? (Score:2)
Re: (Score:2)
They expect 90% of their investments to fail and 10% to 100x.
FTX was possibly a success but then it got involved in political money laundering and lost its game of musical chairs.
Yes, every game of musical chairs is fraud but some companies have survived it with derivatives plays.
Obviously nobody would characterize Tether that way, eh?
Re: (Score:2)
Make no mistake ... (Score:2)
Did anyone believe that the licensing change was the sole brainchild of John Riccitiello? Of course he was instructed by Sequoia and pals to squeeze the developers and got dumped when he failed to get the message across. Unity is still on the same toxic track and will be as long as VC capital sees a chance for a payout.
As others have said, this is a PR mov
My sign is ready: "Will code for food" (Score:2)