Benchmark backs open source company

Fresh from closing a $500 million fund, the VC firm has led a $12 million round for open source business intelligence company Pentaho.

Pentaho has completed a $12 million (€8 million) third round of financing led by Benchmark Capital.

Index Ventures and New Enterprise Associates, existing investors in the open source “business intelligence” company, also participated in the fundraising round.

Pentaho, whose products include reporting, analytics, dashboards, data mining and data integration, plans to use the capital for research and development in addition to ongoing international expansion.

The company is able to “deliver better products in a much more customer-centric open source model” amid current consolidation in the traditional business intelligence industry, Peter Fenton, Benchmark general partner, said in a statement. Industry blog VentureBeat noted that the sector’s recent consolidations include SAP’s $6.78 billion acquisition of Business Objects, IBM’s $4.9 billion acquisition of Cognos and Oracle’s $3.3 billion acquisition of Hyperion.

Benchmark recently enjoyed a successful exit from its investment in open source database company MySQL, which was sold to IT firm Sun MicroSystems for $1 billion in January. Other open source investments made by Benchmark include Red Hat and Zimbra.

Silicon Valley-based Benchmark Capital is fresh off the 15 January close of its $500 million sixth fund. Other venture capital funds of similar size to enter the market in the last six months include Austin Ventures’ 10th fund, which is targeting $600 million; Advanced Technology Ventures’ eighth fund, which is targeting $400 million; and ePlanet Ventures’ second fund, its first since parting from Draper Fisher Jurvetson, which is targeting $400 million.