Frequently asked questions
Can you explain your investment focus in more detail?
We invest in software start-ups deploying user base and/or community business models with disruptive product offerings, i.e. having the ability to successfully challenge established modes of operation in the market. User base and community business models can often be found in companies focusing on Crowd-sourcing, Open Source, Software-as-a-Service, Marketplaces, and Data companies.
Open Ocean believes that understanding and utilizing the importance of large user-bases / 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 development & commercialization 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- or open source model?
Yes. By applying the expertise we have gained by working with several companies monetizing products and services with an open model, not in the least MySQL AB, we have learned many ways to monetize and rapidly scale revenue in these types of 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 0.75-1M€, with one or several follow-on investments tied to growth targets. The maximum investment is upto 7M€ 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.