SALT LAKE CITY — HeroDevs, a prominent provider of security and compliance solutions specifically targeting deprecated open source software (OSS), has announced a substantial $125 million strategic growth investment from PSG, a leading growth equity firm. This investment aims to capitalize on transformational growth in the software and technology-enabled services sector. Existing investor Album also participated in this latest funding round.
The increasing adoption of artificial intelligence (AI) is accelerating the integration of OSS within enterprise security systems. Recent findings indicate that the average commercial codebase contains approximately 911 open source components, with 86% of those codebases housing OSS that are known to have vulnerabilities, according to data from Black Duck. Furthermore, a report by Qualys reveals that a staggering 48% of vulnerabilities arise from OSS that is neither supported nor maintained.
In light of these concerning statistics, the funding will bolster HeroDevs’ Never-Ending Support solutions. These solutions are specifically designed to provide seamless and secure alternatives for outdated or vulnerable OSS versions. By enabling enterprises to enhance their security without the need for complete application overhauls, HeroDevs aims to protect against vulnerabilities that can lead to severe data breaches and cyberattacks. The company’s approach also offers teams the flexibility to plan software transitions at their own pace.
Aaron Frost, the Founder and CEO of HeroDevs, commented on the significance of this investment: “In our view, open source software runs the world. Through this investment, we’re doubling down on our mission of ensuring everyone—from developers to startups to enterprises and governments—has the tools and support to stay safe and compliant, even when they find themselves stuck running end-of-life open source software.”
Frost further emphasized the importance of HeroDevs’ mission, stating, “We believe that the lifeline we provide to our customers saves them thousands of hours and hundreds of millions of dollars, not to mention the loss in trust that comes from security breaches. Our team is proud to use this investment to solve two of the biggest challenges we face in the open source software community: funding the next generation of open source development and improving visibility around end-of-life security risks.”
Marco Ferrari, Managing Director and Co-Head of North America at PSG, along with Principal Paul Russ, noted the increasing demand for solutions that enhance security and compliance while preserving the broader open source ecosystem’s value. They stated, “The acceleration of the adoption of open source software across enterprises highlights the growing demand for solutions that not only help companies meet strict security and compliance standards but also aim to preserve and strengthen the value of the broader open source ecosystem.”
HeroDevs will also allocate $20 million of the investment toward its Open Source Sustainability Fund. This fund is designed to support open source creators, maintainers, and projects that adhere to end-of-life best practices. The Open Source Sustainability Fund is now officially open for applications, allowing developers and projects to request funding ranging from $2,500 to $250,000.
To qualify for this funding, applicants must demonstrate strong community adoption, commit to following security best practices during the announcement and execution of end-of-life software versions, and agree to the program’s requirements. Interested parties can apply for funding and learn more about the program by visiting herodevs.com/sustainability-fund.
The introduction of the Sustainability Fund builds on HeroDevs’ commitment to providing innovative funding models for the open source community. The company has already donated a portion of its revenue to support open source creators and projects, amounting to $4 million to date, with an additional $2 million planned for 2024.
D.A. Davidson and Ampleo acted as financial advisors to HeroDevs, while Foley & Lardner LLP served as the company’s legal advisor. PSG was represented by Weil, Gotshal & Manges LLP in this investment round.
About HeroDevs:
HeroDevs is a trusted leader in providing secure, never-ending support for deprecated open-source software. The company’s mission is to ensure that critical technologies remain operational, secure, and compliant long after their official end-of-life. HeroDevs’ Never-Ending Support solutions empower businesses to plan migrations on their terms while safeguarding against vulnerabilities and compliance risks. Serving sectors where security and uptime are paramount, including finance, healthcare, and government, HeroDevs supports over 800 companies, many of which are part of the Fortune 100.
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