Money makes the (Open Source eCommerce) world go round
14th September Leave a comment
Via one of my favourite eCommerce blogs – excitingcommerce.de – I’ve just got word that Prestashop, the Open Source shopping software that is based in France and has been launched in 2007 got a €3 million injection by Serena Capital.
For the European market, there are mainly four Open Source shopping carts that are actively engaging in shaping the future of E-Commerce:
- Magento: This piece of software has made quite an impression when it launched in 2008. At a time when people all over the world were frustrated regarding what – or rather what not – existing carts were capable of, the founders from California were able to deliver an innovative product and market it in very clever way. Magento has been purchased by eBay recently (for an amount of over $180 million, according to Techcrunch sources), and the upcoming X.Commerce Innovate Developer Conference, which will take place in mid-October, will reveal what eBay turns this piece of software into.
- OXID eShop: This is a piece of software that has started off as a commercial product. At the end of 2008, the company released an Open Source edition, and in order to foster the growth of its OS strategy, OXID eSales has taken on venture capital by LBBW Venture Capital as well as IBG Beteiligungsgesellschaft Sachsen-Anhalt for the second time already. The details of this engagement are not known.
- Prestashop: Having started in 2007, this shopping cart has mainly been targeting the French and Spanish markets and has already gained €700.000 before receiving the recent pile of cash.
- Shopware: This is another Germany-based shopping cart that also started as a commercial platform but has ventured on the OS path about a year ago. As far as was told, this company operates without any foreign capital whatsoever and seems to be able to pay its development from the daily business operations.
I wonder which strategy will prove to be the wisest in the long run: With a decent amount of venture cash in the bank, one surely has more ressources – people, marketing funds – to be able to start turning the big wheels as it were. On the other hand, depending on the business connection one has with the VC company, it might be hard to follow one’s own business strategy because someone else intervenes with the daily operations. In the worst case scenario, a former innovative and technology-driven company turns into a bureaucratic monster, valuing meetings and extensive reporting higher than just building a good team and an even better product. It will be interesting to see how these different strategies evolve in the future. <em<(Image by amagil)