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Summary:

London-based Openads, an open-source ad server, has managed to raise a $15.5 million (£7.9 million) second round of funding, with the aim o…

London-based Openads, an open-source ad server, has managed to raise a $15.5 million (£7.9 million) second round of funding, with the aim of stepping up product development and hiring more staff. (Rafat adds: We use the software to serve ads currently, but are moving away to a commercial software)

Its eponymous Openads product lets website operators insert image, movie, Flash, popup and other ads, target campaigns and monitor their performance. It can also plug in ad-networks like Google’s (NSDQ: GOOG), it’s used by over 30,000 web publishers in over 100 countries.

So how can Openads command such a hefty investment for a product it’s giving away? It’s not the first to try to make money from open-source – Red Hat (Linux), Automattic (WordPress) and Acquia have all set about offering premium options on top of essentially free software. Today, Openads launches a hosted version that removes the need for users to run the software on their own servers. There’s not yet any mention of that being a commercial offering but that appears the most likely monetisation avenue. Update: The hosted option will also remain free.

The round is led by Accel Partners, with investment from existing backers Index Ventures, First Round Capital, Mangrove Capital Partners and O’Reilly AlphaTech Ventures. Openads’ $5 million first round in June was led by Index with contributions from everyone else except Accel, which Openads CEO James Bilefield said shared his belief in the open-source model.

  1. I just want to take the opportunity to let all of you know that some of this money will be used to hire brilliant people. Please take a look at our site and you will find the roles we are currently recruiting for (www.openads.org)

    If you have any questions at all, please feel free to contact me directly sarah.mcquade@openads.org

    Thanks
    Sarah McQuade
    Recruitment Manager

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  2. That is great news Sarah. I hope that you wouldn't hire stupid people for the job :P

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  3. Openads is dead or what i haven't seem many people talking about Openads much. What’s Status Sarah ?? you people not promoting Openads ??

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