I think there is a more fundamental reason why startups who build open-source may be more successful than those who don't. In my (entirely anecdotal) experience

I think there is a more fundamental reason why startups who build open-source may be more successful than those who don't. In my (entirely anecdotal) experience, there is a definite correlation between proprietary source code and paternalistic business practices. I think most companies that refuse to provide source code will also confine their users to their vision of the way the software should be used. Unless you have the good fortune to be the only entrant into an exciting new field, that sort of Victorian we-know-what's-good-for-you smugness is unlikely to be a hit for long. The reason LearnBoost will win is not simply that it's a better product. It's one you can escape from. You can export your gradebook and lesson plans. You can manipulate them any way you like. By contrast, the proprietary Blackboard Vista, which my teachers use, is a never-ending source of aggravation and pain. And it's compounded by cost of exit. Blackboard is, to my knowledge, exclusively subscription-based, and exporting the data is difficult at best.