Venture Capital News
IDC: Open Source Revenues to Reach $5.8 Billion by 2011
The market for standalone open source software (OSS) is in a significant growth stage, according to the IDC. Adoption of OSS will accelerate over the period of 2007 through 2011 as barriers to adoption get knocked down. Growth in revenues, however, will lag behind the growth in distribution of open source software.
According to IDC, worldwide revenues from standalone open source software reached US$1.8 billion in 2006. The revenues will reach US$5.8 billion in 2011, representing a compound annual growth rate (CAGR) of 26% from 2006 to 2011.
IDC's study shows that the drivers for OSS adoption, and in particular commercial adoption of OSS, include increased customer interest in OSS as customers realize that OSS provides them with more choice and leverage with proprietary software vendors. In addition, more financial backing from venture capitalists, more comfort with subscription revenue as a business model, and increased interest in OSS within larger enterprise organizations are helping to accelerate the OSS adoption rate.
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NEA Names Mike Ramsay to Venture Partner Post
New Enterprise Associates (NEA) has named Mike Ramsay, co-Founder and former Chairman and CEO of TiVo, to the post of Venture Partner. Mr. Ramsay will join NEA's Menlo Park team with a focus on consumer investments.
Ramsay co-founded TiVo in 1997 and served as CEO and Chairman until 2005. Prior to starting TiVo, Ramsay was Senior Vice President of the Silicon Desktop Group for Silicon Graphics (SGI). He had previously been President of Silicon Studio, Inc., a wholly owned subsidiary of Silicon Graphics focused on enabling applications development for merging interactive digital media markets. Prior to SGI, Ramsay held R&D and engineering management positions at Hewlett-Packard and Convergent Technologies and earned a first-class B.S.E.E. from the University of Edinburgh, Scotland.
Ramsay will focus on NEA's expanding consumer investing activities, working closely with NEA General Partner Kittu Kolluri and NEA Partner Patrick Chung.
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Novacea and Schering-Plough Enter Into Worldwide Development and Commercialization Agreement for Asentar
Novacea, Inc. and Schering-Plough Corporation announced that they have entered into an exclusive worldwide license agreement for the development and commercialization of Asentar (DN-101). Novacea is currently conducting a large international Phase 3 trial (ASCENT-2) evaluating Asentar in 900 patients with androgen-independent prostate cancer (AIPC). Asentar is a novel, proprietary, high-dose oral formulation of calcitriol, a potent hormone that exerts its effects through the vitamin D receptor (VDR).
Under the terms of the agreement, Novacea will receive an upfront payment of $60 million, including $35 million as reimbursement for past research and development expenses, a license fee of $25 million, as well as a commitment by Schering-Plough to purchase $12 million of Novacea common stock at a predetermined price within ten days of the closing. Additionally, the agreement provides Novacea with potential pre-commercial milestone payments of up to $380 million, and tiered royalties on worldwide sales of Asentar. Closing of the transaction is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act (HSR) and is anticipated to occur following HSR clearance.
Schering-Plough will be responsible for all forward development costs in exploring indications for earlier stages of prostate cancer, such as androgen- dependent prostate cancer (ADPC) and adjuvant therapy and will lead all global commercialization efforts for Asentar. Novacea will provide medical support to Schering-Plough's commercial operations for Asentar in the United States, including deployment of their Medical Science Liaisons, which will be funded by Schering-Plough.
