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E-commerce software firm rides Linux wave, snags $10 million

OpenSales, which develops open-source e-commerce software that runs on Linux, among other operating systems, receives a $10 million investment.

Barely a day goes by in the high-tech arena without the announcement of a multimillion-dollar funding deal for a Linux start-up.

The latest example is OpenSales, an open-source e-commerce software company, which today received $10 million in financing.

Like most of it newly cash-flush brethren, OpenSales isn't winning admirers with big profits; its main product won't even be released until later this month. But Linux has won the confidence of investors, and market penetration of Linux and Linux-related software has expanded dramatically in the past year and is expected to continue to grow.

OpenSales' main offering is OpenSales Core Commerce, an e-commerce management program that runs on Linux, Unix and Windows NT. With it, sites can manage content, pricing, inventory, ordering and other functions. The company was founded in part by former programmers from eToys.

The San Mateo, Calif.-based company works under the open-source model, in which the underlying code for software is freely available for distribution and modification. The company then gains revenue through installation services, consulting and support services.

Backers in the deal include Idealab Capital Partners and Sanchez Capital Partners.

"We are very enthusiastic about the prospects for OpenSales, as we believe that open-source development will come to dominate most software categories," Jim Armstrong, managing director at Idealab Capital Partners, said in a statement.