VA new investment telegraphs another Linux IPO?

Shrewd fellows - get some money now and hold off for a little longer to maximise the bang

Do we spot Linux IPO number two on the horizon? If so, VA Linux Systems seems to be aiming for bigger bucks than Red Hat; it's cannily pulling in more money in second round finance, the general idea under those circumstances usually being to increase the value of the company in order to go for a bigger jump at IPO stage. VA is raising $25 million from a prestigious crowd, including SGI, Intel and Sequoia (both back for a second invest), and a string of VC outfits you'd only get bored reading if we listed them all. Intel's continuing interest is understandable, while SGI's is a wee bit intriguing. SGI is of course switching to Intel, so needs to back some of the same horses Intel backs. VA itself is working on a 64-bit version of Linux for Merced, which is of interest to both companies. Once Merced and VA's Linux implementation are available, VA will no doubt look exceedingly bankable. So a bit of second round now with a view to an IPO a little later looks eminently sensible. ®

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