Sonatype raises $25 million from NEA, others
Washington Business Journal
Published: July 10, 2012 08:30
Sonatype Inc. has raised $25 million in a funding round led by New Enterprise Associates, the open-source software startup announced Tuesday.
Existing backers Accel Partners, Bay Partners, Hummer Winblad Venture Partners and Morgenthaler Ventures joined in the financing alongside Chevy Chase-based NEA. It comes less than two years after Sonatype moved its offices from Silicon Valley to Silver Spring and named former Sourcefire Inc. CEO Wayne Jackson as its chief executive.
With the financing, Sonatype and its backers are betting that the enterprise world, especially the financial sector, will continue its shift into open source software over the proprietary alternative. Sonatype, which operates a massive digital warehouse of open-source components called the Central Repository, is positioned to capitalize on that trend. When a business — say, a credit card company – pieces together its own custom software using the repository, Sonatype has inside intel on the security and stability flaws that leave the company vulnerable – and can sell tools to fix and update them.
Sonatype arrived at this business model, dubbed "component lifecycle management," last year. The most recent funding round will allow it to “invest in product development and the global marketing” of its services, according to a news release.
The venture investment is Sonatype’s first since it raised $11.6 million in 2010. That round was led by Accel Partners, perhaps best known for its early investment in Facebook Inc.