• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechGoldman Sachs Group

Goldman Sachs Leads $30 Million Investment in Software Supply Chain Fixer

Robert Hackett
By
Robert Hackett
Robert Hackett
Down Arrow Button Icon
Robert Hackett
By
Robert Hackett
Robert Hackett
Down Arrow Button Icon
February 4, 2016, 8:00 AM ET
U.S. Stocks Decline A Second Day As Investors Await Jobs Report
Goldman Sachs Group Inc. signage is displayed on the floor of the New York Stock Exchange in New York, U.S., on Thursday, June 2, 2011. Photograph by Bloomberg via Getty Images

Imagine an auto assembly line in which each factory worker is allowed to make random supplier and part decisions.

That’s the way Wayne Jackson, CEO of Sonatype, describes the present state of software development. “You would have no consistency from car to car and it would be complete chaos,” he tells Fortune. “Sadly, that’s how people are making software in most places.”

Get Data Sheet, Fortune’s technology newsletter.

Jackson’s tech firm, founded in 2008 and based in Fulton, Md., manages the lifecycle of digital products. Since most developers draw on open source code to build their software, that leaves open the possibility for countless computer bugs, compatibility issues, and security gaps to creep in.

Sonatype aims to track and monitor all these coding components so as to prevent such lapses. Say someone used a defective software library—like, for instance, OpenSSL during the Heartbleed vulnerability fiasco of 2014—the firm’s technology should alert the developer, block the problem, and make recommendations to resolve the issue.

Think of the service as enabling orderly product recalls, except with software instead of cars, food, or pharmaceuticals.

For more on recalls, watch:

Sonatype said Thursday it raised $30 million in a round of financing led by the principal strategic investments group at Goldman Sachs (GS). All previous investors—including New Enterprise Associates, Accel, Bay Partners, Hummer Winblad Venture Partners, and Morgenthaler Ventures—participated in the round, and the firm has accumulated about $60 million in total funding to date.

Don Duet, who co-leads the tech division at Goldman, cited the growing importance of open source code at his company as justification for the deal. “Today, open source components underpin a vast majority of our most mission-critical applications at the firm,” he said in a statement. “As we work to build, maintain and update these applications, we must also ensure that we are using the highest quality open source components at every stage of the development cycle. We are pleased to support Sonatype’s mission to deliver this important service to the marketplace and the company’s continued growth.”

Read more:Goldman Sachs to Invest $150 Billion in Clean Energy

Jackson, formerly CEO of Sourcefire, a cybersecurity firm now owned by Cisco (CSCO), says the company still had a substantial chunk of the $25 million it raised in 2012, and wasn’t looking to raise more money. The former CEO of Riverbed Technologies—a wireless infrastructure he founded and sold during the dot-com era—adds that the additional support will allow the venture to start pursuing business in the Asia-Pacific region.

That proposed expansion, in fact, represents something of a manifest destiny for Jackson, who references the lean manufacturing principles of the influential labor statistician Edward Deming as well as Japanese automakers as inspiration for Sonatype.

“We’re trying to basically bring the supply chain concepts built by Deming and others at Toyota to software manufacturing,” he says. “Even though for software that may seem impossible.”

About the Author
Robert Hackett
By Robert Hackett
Instagram iconLinkedIn iconTwitter icon
See full bioRight Arrow Button Icon

Latest in Tech

AIchief executive officer (CEO)
Microsoft AI boss Suleyman opens up about his peers and calls Elon Musk a ‘bulldozer’ with ‘superhuman capabilities to bend reality to his will’
By Jason MaDecember 13, 2025
8 hours ago
InvestingStock
There have been head fakes before, but this time may be different as the latest stock rotation out of AI is just getting started, analysts say
By Jason MaDecember 13, 2025
14 hours ago
Politicsdavid sacks
Can there be competency without conflict in Washington?
By Alyson ShontellDecember 13, 2025
14 hours ago
InnovationRobots
Even in Silicon Valley, skepticism looms over robots, while ‘China has certainly a lot more momentum on humanoids’
By Matt O'Brien and The Associated PressDecember 13, 2025
16 hours ago
Sarandos
Arts & EntertainmentM&A
It’s a sequel, it’s a remake, it’s a reboot: Lawyers grow wistful for old corporate rumbles as Paramount, Netflix fight for Warner
By Nick LichtenbergDecember 13, 2025
20 hours ago
Oracle chairman of the board and chief technology officer Larry Ellison delivers a keynote address during the 2019 Oracle OpenWorld on September 16, 2019 in San Francisco, California.
AIOracle
Oracle’s collapsing stock shows the AI boom is running into two hard limits: physics and debt markets
By Eva RoytburgDecember 13, 2025
21 hours ago

Most Popular

placeholder alt text
Success
Apple cofounder Ronald Wayne sold his 10% stake for $800 in 1976—today it’d be worth up to $400 billion
By Preston ForeDecember 12, 2025
2 days ago
placeholder alt text
Economy
Tariffs are taxes and they were used to finance the federal government until the 1913 income tax. A top economist breaks it down
By Kent JonesDecember 12, 2025
2 days ago
placeholder alt text
Success
40% of Stanford undergrads receive disability accommodations—but it’s become a college-wide phenomenon as Gen Z try to succeed in the current climate
By Preston ForeDecember 12, 2025
2 days ago
placeholder alt text
Economy
The Fed just ‘Trump-proofed’ itself with a unanimous move to preempt a potential leadership shake-up
By Jason MaDecember 12, 2025
1 day ago
placeholder alt text
Success
Apple CEO Tim Cook out-earns the average American’s salary in just 7 hours—to put that into context, he could buy a new $439,000 home in just 2 days
By Emma BurleighDecember 12, 2025
2 days ago
placeholder alt text
Economy
For the first time since Trump’s tariff rollout, import tax revenue has fallen, threatening his lofty plans to slash the $38 trillion national debt
By Sasha RogelbergDecember 12, 2025
1 day ago
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.