Red Hat returns to venture game with JasperSoft investment

Red Hat is putting money into JasperSoft, perhaps validating the open-source business intelligence vendor.

Years ago it was fairly common to see Red Hat and other so-called "strategic investors" taken an active part in venture financings. In one of the most ironic venture investments ever, Novell was an early investor in Red Hat. I imagine it would happily trade the outsized return it received way back when for another 10 points in market share today....

While SAP and Intel remain active, most technology corporations have shelved their investment arms, with open-source leader Red Hat being no exception.

Until now.

On Wednesday, open-source business intelligence vendor JasperSoft announced a $12.5 million later-stage round of funding, with Adams Street Partners leading the round and Red Hat participating. JasperSoft has raised $43.5 million to date, according to Internetnews.com. The money will no doubt be welcome at JasperSoft, but Red Hat's validation of JasperSoft is a bigger coup.

Red Hat embeds JasperSoft's reporting technology in its Red Hat Network Satellite service, so the two companies have some familiarity. One would expect the investment to lead to greater ties between the two companies.

In other open-source venture news, Sam Dean at OStatic picks up on Appcelerator's announcement of a $4.1 million Series A financing from Storm Ventures. Kudos to Ben Sabrin and the rest of the Appcelerator team.


Disclosure: SAP Ventures is an investor in my company, Alfresco. I am an adviser to JasperSoft. My company is a business partner with Red Hat.

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