How Does GitHub Make Money (Should You Invest?)

GitHub is a web-based hosting service for software development that uses the popular version control system Git.

It provides access control and collaboration tools, such as bug tracking, feature requests, task management, and wikis for every project.

Founded in 2008 by Tom Preston-Werner, Chris Wanstrath, and PJ Hyett; GitHub has become an essential platform for developers who want to share their work with others and collaborate on projects together. But how does GitHub make money?

While it offers free plans for individuals and open source projects to use its services; GitHub's primary revenue stream comes from providing paid plans to businesses which give them additional features that are not available on the free plan.

By offering these features at a cost they can monetize their platform while still giving users access to powerful development tools.

Reading more about GitHub can help potential users decide if it is the right platform for their needs and if they want to invest in it.

Overview of GitHub’s Business Model.

Github Business Model

So, how does GitHub make money? GitHub is a web-based hosting service for software development projects.

It provides access control and collaboration features such as bug tracking, feature requests, task management, and wikis for every project. The company was founded in 2008 by Tom Preston-Werner, Chris Wanstrath, and PJ Hyett with the intention of providing an open source platform to make it easier for developers to collaborate on code.  

Since then, GitHub has grown to become the largest host of source code in the world, with over 57 million repositories and more than 40 million developers.

At its core, the GitHub business model is based on providing a platform for developers to store and manage their software projects using version control systems such as Git.

The company charges for additional features such as private repositories and enterprise support. GitHub also offers premium plans that provide additional features such as advanced security and expanded storage.

Additionally, the company has a marketplace of applications built on top of its platform to help developers manage their projects more effectively when selling to paying customers.

Their third party app sales platform, 'GitHub Marketplace', allows small development teams to generate revenue streams for their coding projects.

GitHub’s success can be attributed to its commitment to open source development and its willingness to give back to the community.

The company has a number of initiatives such as GitHub Education, which provides free accounts for students, and GitHub Sponsorships, which provides grants to open source projects.

In short, with its wide range of features and strong commitment to open source development, GitHub is undoubtedly one of the leading forces in the software development industry. By providing a platform for developers to collaborate more easily and efficiently, GitHub has helped revolutionize the way software projects are managed.  

The GitHub business model is a testament to the power of open source and an example of how companies can successfully monetize their services.

How Does GitHub Make Money Through Subscription Plans.

GitHub subscription plans

GitHub is a platform that has become increasingly popular in recent years due to its ability to help multiple developers easily collaborate on code, making it the market leading online collaboration tool for software developers.

As such, it has become an essential tool for many developers and companies, leading to the emergence of a very lucrative subscription system. GitHub makes money through subscription plans which are split into different levels based on the user's needs.

These plans range from free to enterprise and can help organizations manage their code, collaborate with other developers, and even deploy applications quickly and securely. For those looking for a bit more customization in the way they use GitHub, premium plans are also available.

With these plans users can take advantage of extra features such as private repositories, increased storage, and access to advanced tools for better code management.

As more businesses and developers adopt GitHub, there's no doubt that its popularity will continue to grow, which means it will likely remain a lucrative source of income for some time to come.

GitHub is a powerful platform for hosting and managing software code, with an estimated 40 million users around the world. It is also a profitable business - in 2019, GitHub's revenue was reported at $1.1 billion, up from $983 million in 2018. This impressive growth was mainly driven by strong sales of its enterprise product and services.

Other Ways that GitHub Makes Money.

GitHub Enterprise

GitHub Enterprise

Aside from the various plans offered for individual users, GitHub also offers multiple enterprise plans for businesses, which is the main source of how GitHub makes money.

The GitHub Enterprise plan is one of their premium subscription plans that allows organizations to have unlimited private repositories and unlimited public repositories as well as additional features like advanced security, compliance, integration and other premium features, all in their premium version.

By offering this level of support to larger businesses with greater needs and more complicated version control setups, GitHub Ultimate enables them to have secure and reliable control over their projects for unlimited collaborators.

Plus, it's sure to put a smile on the face of any tech-savvy businessperson!  

In short, GitHub Ultimate is the business solution that empowers organizations to get the most out of their collaboration efforts. And with its various levels of support available, no matter the size of the business, there's a service for everyone.  

GitHub Marketplace

GitHub marketplace

GitHub generates revenue through its Marketplace, which is a platform for software developers to buy and sell applications and services.

The Marketplace offers various apps, extensions, add-ons, and integrations that can help developers enhance their projects quickly and easily. The Marketplace allows developers to monetize their creations in the form of one-time purchases or subscription models.

Finally, GitHub also earns money through its Open Collective initiative, which provides grants to open source projects.

By providing funds to the development of open source software and technology, GitHub is helping foster innovation in the tech world and rewarding developers for their contributions to the community.  

All in all, GitHub has plenty of ways to make money and it's no surprise that the company has been so successful.  

Github’s business model is a testament to the power of open source and an example of how companies can successfully monetize their services.

Should You Invest In GitHub?

GitHub Owner Microsoft (Stock Chart)

Unfortunately, at this time, you cannot invest in GitHub through the stock market. GitHub is a privately-held company, owned by Microsoft since 2018.

Therefore, the only way to invest in the company is to buy shares from current shareholders on secondary markets such as SharesPost and EquityZen.

Since being acquired by Microsoft in 2018 for a whopping $7.5 billion, many investors have  been curious about the potential returns that could be gained by investing in GitHub’s future shares.

The good news is that the company has been growing steadily since then, so if you decide to invest your money in its shares you may be able to make a nice return down the line.

Who knows, maybe one day Microsoft will take GitHub public and we can all be part of the GitHub IPO!

There has been much speculation in recent years regarding the potential for GitHub to undertake an Initial Public Offering (IPO). The popular software development platform has grown exponentially since its founding in 2008, and as of 2020, it boasts 40 million users.

This tremendous growth has made investors increasingly curious about whether or not Github will go the route of other tech giants and take the plunge into the public markets.

Until now, there hasn't been any official statement from Github on their plans, leaving us with nothing to do but speculate.

However, we can safely assume that whatever decision is made will be beneficial for all of Github's stakeholders: developers, investors, and of course the company itself. Whether or not Github will ever go public remains to be seen, but one thing is for certain: it's an exciting time to follow the platform's future.

The possibilities are truly endless!

Investing in GitHub can be done by purchasing shares from either its existing shareholders or Microsoft.

As one of the world's most popular and powerful code hosting services, GitHub offers a unique opportunity for investors looking to tap into the potential of this increasingly important technology.

For those looking to purchase shares from an existing shareholder, they will first need to locate the right individual or institution to purchase their shares from.

This can be done by searching on third party apps for a current shareholder, or even reaching out directly to GitHub itself for potential sellers.

Once you have identified a seller and agreed on a price, it is then important to ensure that the necessary paperwork is completed correctly.

This includes making sure all the necessary information about the sale, such as payment instructions and the size of purchase, is included in the agreement.

Subscribe For Free

Become a better investor in just 5 minutes. Bitesize market-moving news, summaries and links from the world of investing, three times a week.