The slowdown in venture capital funding for Linux and open source-related vendors continued in the third quarter as disclosed funding deals were down 41.6% to $77.8m*, compared to $133.3m in the same quarter last year.
The news is not all bad however, as there are indications that the downward trend is cyclical, rather than spiral. The level of investment via seed and Series A funding rounds actually increased for the second quarter in succession, while the big money for established vendors went on M&A activity rather than venture funding.
http://blogs.the451group.com/opensource/2007/10/02/open-source-funding-down-41-in-q3/