A $12M round of financing has been closed by Black Duck Software (News - Alert). New investor Split Rock Partners was the main investor in this round of financing. The existing investors had also participated in the financing. Acceleration of growth is the main focus of Black Duck Software. Apart from advancing key development projects, the company will continue its acquisition and expand its global presence with the funds received. Since 2009, the company has also been cash-flow positive. An announcement in this regard has been made by the top company in open source software knowledge, adoption and governance, Black Duck Software.
General Catalyst Partners, Volition Capital formerly known as Fidelity Ventures and Flagship Ventures are some of the current investors for Black Duck. The company’s other current investors include Focus Ventures, Intel Capital, SAP (News - Alert) Ventures and Red Hat.
The Black Duck Suite is the flagship product of Black Duck. The enterprise-scale use and management of open source software or OSS in software development is enabled by the Black Duck Suite.
In a release, Jim Simons, Managing Director of Split Rock Partners (News - Alert), said, "What drew our attention to Black Duck was their dramatic growth and the successful evolution of their business from compliance and code-scanning to a provider of enterprise scale products and services that enable the broad adoption and governance of open source software."
According to Simons, a sector with a $1B market opportunity is now headed by the company. Ensuring effective use of open source by the development organizations across the globe to enhanceproductivity and innovation has been the focus of the company.
Leo de Luna, Black Duck Board Observer at Split Rock Partners, said, "We've been extremely impressed with the leadership team's ability to execute in a competitive market and uneasy economic times, and are pleased to have the opportunity to help Black Duck accelerate its growth and expand its footprint."
Significant growth in excess of 35 percent in year-over-year sales has been posted by Black Duck. The company also added 69 new customers in the third quarter of 2011. The company now employs 150 employees. The financing was therefore offered on the basis of Black Duck’s significant growth.