Frequently asked questions

Below answers to some common questions we have received. Please feel free to post new questions on our facebook page.

Can you explain your Community / Open Source investment focus in more detail?

We invest in start-ups deploying user community- and/or open source business models with disruptive product offerings, i.e. having the ability to successfully challenge established modes of operation in the market. 
The target markets includes software products and services, taking advantages of the strong future growth in mobile computing and applications, cloud computing, software-as-a-service, Enterprise 2.0 and open source – trends where MySQL has played a catalytic role. We seek to prioritize opportunities within these selected know-how clusters to create a strong network between the portfolio companies.

Open Ocean believes that understanding the importance of large communities is a key defining factor in achieving fast growth for an innovative product - and the company behind it - in the online world. Also, with successful open source strategies one can dramatically reduce product development costs, develop better software products, and radically improve customer acquisition.  

Do you really know how to make money with an open source model?

Yes. By applying the expertise we have gained by working with several companies monetizing open source products and services, not in the least MySQL AB, we have learned many ways to monetize and rapidly scale revenue in open source companies. At the same time, rarely is one company's situation identical to another, so one needs to carefully craft the strategy to fit the market and the company's assets.

How much do you typically invest per company?

We believe that a multi-stage investment model is best for developing the start-up to global success. Our typical initial investment is 0.5-1M€, with one or several follow-on investments tied to growth targets. The maximum investment is currently 6M€ per portfolio-company.

What is your geographical focus?

Open Ocean is primarily focused on European start-up companies.

Do you do seed investments?

We only invest in companies with a released version of the product, which has established a user-base, so as per traditional stage definitions we do not invest in seed stage companies.

Do you target a minority or majority stake in the portfolio companies and how soon do you seek an exit?

We typically target a minority stake in our portfolio-companies, with exits within 5-8 years.

Do you syndicate your investments?

We like to invest together with other VCs or business angels already in the first investment round. As the portfolio company moves through the growth phases, Open Ocean aims to bring additional investors on-board to ensure that the company has the right backing when targeting rapid global expansion, and when preparing for potential exit-routes.

Who are the investors in Open Ocean?

Open Ocean Fund Three Ky has raised its investment capital from institutional and private investors. Fund Three is supported by institutional investors including the European Investment Fund, Finnish Industry Investment, and Fund of Fund Growth. The investors in Fund Three also include private investment companies and high-net worth individuals. The Open Ocean team also holds a significant investment in the Fund.