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With open source software (LAMP stack) and cloudcomputing infrastructure it just wasn’t that expensive to get your company going and founders just wanted to raise less money. Entrepreneurs want less cash because they want to control dilution and preserve exit options at lower prices. I told Sean Rad at Ad.ly
Open-Source Software & Horizontal Computing. It was driven by the introduction of open-source software, most notably what was called the LAMP stack. These two trends had a major impact on the computing industry from 2000-2005 but the effects weren’t yet felt by the VC industry.
Even the most conservative companies began adopting the open-source LAMP stack (Linux, Apache, MySQL, and PHP) to dynamically create and maintain their websites. Google) were initially based on open source elements, then refined to make it work reliably at huge scale, clearly demonstrating the relevance of open source for cloudcomputing.
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