NodeSource Raises Cash as Node.js Expands
The San Francisco-based startup said its $17.5 million Series B funding round was led by Silicon Valley Bank and Industry Ventures along with existing investors Crosslink Capital and RRE Ventures. The funds will be used to expand engineering and marketing services as the Node.js runtime gathers momentum among enterprise developers.
The startup's strategy is "all about empowering organizations to successfully adopt, operationalize and scale Node.js to drive digital transformation initiatives," NodeSource Founder and CEO Joe McCann noted in a statement announcing the results of the funding round.
As Node.js makes inroads within the enterprise, DevOps teams continue to struggle with ongoing security issues. A survey released in November by NodeSource and software security startup Sqreen found that more than one-third of the Node.js developers and executives it polled expect to be hacked. Indeed, many were resigned to large-scales attack over the next several months.
As investors flock to startups attempting to commercialize popular open source technologies such as Node.js, the number of initial stock offerings also has grown. NodeSource found that more than a quarter of those executives it surveyed last year expect a surge of IPOs by open source companies this year. They cited IPOs last year by API specialist Mulesoft Inc. (NYSE: MULE), data prep vendor Alteryx Inc. (NYSE: AYX), Hadoop software provider Cloudera Inc. (NYSE: CLDR) and enterprise software developer Appian Corp. (NASDAQ: APPN), which raised about $75 million in a May stock offering.