I’ve spent three decades in technology, watching brilliant founders pour their hearts into building world-changing open source projects. I’ve seen them cultivate vibrant communities, driven by a shared passion for solving hard problems. And I’ve also seen them arrive at a painful crossroads, forced to choose between the community that built them and the capital they need to survive. It’s a story that has ended too often in compromise, with fractured communities and founders left wondering if there was another way.

I’ve always felt, instinctively, that painful choice is a false one. What if the path to building a legendary business isn’t about moving away from your community but doubling down on it? I admit my inner hippie very much wants this to be true, but the founder/investor in me wants to see the data.

This is why I am delighted to announce the release of a new, landmark research report: The State of Commercial Open Source 2025. This report, a collaboration between Linux Foundation Research, Serena, and the Commercial Open Source Startup Alliance (COSSA), analyzes years of venture data to make the case that the most successful businesses don’t sacrifice their communities; they invest in them.

A Win-Win for Capital and Community

The report reveals that Commercial Open Source (COSS) is not just a viable path for investors and founders; it’s a premier one. COSS companies consistently outperform their closed-source peers, achieving 7x greater valuations at IPO and 14x at M&A. They progress through funding stages more efficiently, with graduation rates from Seed to Series A, for example, nearly double that of their counterparts.

For investors, this means they are backing companies that are far more likely to survive the challenging early stages and that deliver dramatically larger returns at exit. For founders, this means you have a far greater chance of seeing your vision survive past the difficult early stages and building a company that creates life-changing value for you,  your team, and your customers.

Even more inspiring is what this success can mean for open source communities and projects themselves. Reasonable people have wondered what venture investment does for community. We now have our sights on the answer. The data convincingly suggests that venture investment acts as a powerful catalyst for community growth. For example, following a funding round, COSS projects experience, on average, a 27% increase in contributors, an 8x increase in dependent projects, and a 7x increase in package downloads.

In simple terms, this translates to more developers contributing to the code, more projects relying on it as a critical foundation, and a surge of new users adopting the software.

This confirms a truth many of us have long held: when capital and community are aligned, everyone benefits. Commercial success doesn’t drain a community; it helps it flourish.

Scaling the Good

A fundamental truth defines our industry: a healthy commercial ecosystem drives broader adoption of open source software and delivers proven returns. To champion this positive cycle, we created the Commercial Open Source Startup Alliance (COSSA). The Linux Foundation, proud to support our inception, provided an exceptional home for this work. Now, after a successful incubation, COSSA has graduated into a standalone entity, ready to scale its mission for the entire industry.

The future of software is being built in the open. With a clear, data-backed understanding of what drives success, we can now build a more sustainable and collaborative ecosystem for all.

We invite you to read the full State of Commercial Open Source 2025 report and join us on this hopeful journey.

Matt Trifiro, Commercial Open Source Startup Alliance

Hilary Carter, SVP of Research, Linux Foundation