The Business of Open Source

Ben Rometsch, CEO of Flagsmith, shares his journey of building an open-source feature flagging project and turning it into a full-time SaaS company. He discusses challenges with pricing and monetizing, importance of licensing, and how caring about developer experience sets Flagsmith apart. They also talk about when revenue started to take off, the frustrations of pricing, and the benefits of being an open-source business.

Max Howell is the CEO of Tea, a revolutionary open-source project that is seeking to help open-source contributors get paid for their work through crypto. Throughout our conversation, Max explains how he’s created some prolific open-source projects but was still unable to monetize them to the point where open source could be his full-time job, and how that provided the inspiration for Tea. Max and I discuss the importance of re-framing open-source projects in business terms of value, and not simply referring to supporting projects as charity work, and Max also shares valuable insights into the world of open-source crypto development.  Highlights:Intro (00:00)I introduce Max, the CEO of tea.xyz, and he explains his career background and how he started Tea (01:00)Max and I discuss the shift that open source needs to make from relying on charity to speaking in business and value terms (09:39)Max describes how Tea is representing the existing value of open source and translating it into monetary form (12:32)The administrative challenges of paying for open-source tools that are business-critical and how Tea helps solve them (14:36)Tea’s business strategy for monetizing their own open-source project (18:05)How Max’s goal of being able to work on the open-source projects he loves full time has played out with Tea (24:06)Max describes how he successfully pitched Tea to investors (25:21)Tea’s relationship with the rest of the crypto industry (27:32)The biggest challenge Max and his team are working on at the moment (29:06)What Max wishes he would have done differently and what he’s learned from the mistakes he’s made (31:59)Where you can go to learn more about Tea and connect with Max (38:53)Links:MaxLinkedIn: https://www.linkedin.com/in/mxcl/Twitter: https://twitter.com/mxclCompany: https://tea.xyz/

Nicolas Höning, Co-Founder and CEO of Seita, discusses creating a greener world through open-source software. He describes challenges open-source founders face, choosing an open-source model, and being a bootstrapped startup. Nicolas explains how their project V2G Liberty optimizes electric vehicle charging sustainably. He also shares why he doesn't market to individual users. Other topics include building open-source software for the energy sector, commercial strategy, funding options, and challenges faced while productizing technology.

Jono Bacon’s passion for building communities has been a driving force in a career taken him from Canonical to GitHub to founding the Community Leadership Core community accelerator. In this episode, Jono shares his definition of community, how a community can create a movement and the differences between the two. We also get a bit of insight into how he developed his passion for building communities and why he continues helping companies build and support theirs through the Community Leadership Core. When Jono speaks about communities he is involved with, he uses “we” instead of “I” to describe their achievements, so I had him dig into that a bit more as we explored the power dynamics that have a huge influence on the success of a community or movement. Highlights:I introduce Jono, who is the founder of Community Leadership Core (0:28)Jono shares more about his passion for building communities and why he started Community Leadership Core (0:51)Jono goes into his background, discovering how Linux was created, and finding connection to others through open source (2:47)Jono reflects on his time at Canonical and what he learned (10:46)How Jono defines and thinks about “community” (13:10)The difference between building a community and creating a movement (15:50)Using “we” vs “I” in communities to encourage collaboration (18:05)Where Jono sees companies missing the mark in community building (20:03)Jono explains what delivery looks like in the context of community (22:31)Jono shares examples of successful communities (27:05)Communities Jono enjoys participating in (28:44)How to start a community from scratch (31:22)A quick summary of the Community Leadership Core (32:40)Links:JonoLinkedIn: https://www.linkedin.com/in/jonobaconTwitter: https://twitter.com/jonobaconCompany: communityleadershipcore.com

Michael Cheng is an M&A Specialist who has had an extensive career that includes a former stint at Facebook as a Product Manager and his current role as a Lawyer. In this episode, Michael returns to the show to have an in-depth discussion around acquisitions. Michael shares his thoughts on why most acquisitions leave everyone involved feeling unsatisfied, and what he thinks should be done by both parties to mitigate the high failure rate of acquisitions. We also chat about the common grievances founders have after going through an acquisition, and the approach Michael recommends to mitigate those regrets. Michael also shares insights on why it’s harder on an open-source company to be successfully acquired if they are in between being a purely services-based or SaaS company. Highlights:I introduce returning guest Michael Cheng, whose illustrious career spans roles as a Product Manager for Facebook, a Lawyer, and an M&A Specialist (00:22)Michael gives some background on his career history and why he’s pursued so many different roles (01:00)Michael and I discuss the bird’s eye view of the steps it takes to get acquired (02:23)Why most acquisitions fail (06:11) The common grievances that sellers have after going through an acquisition (08:11)Michael’s thoughts on the likely outcomes for acquisitions of open-source companies (10:28)What open-source founders can do to favor a successful outcome when approaching an acquisition (13:32)How Michael thinks success should be measured when evaluating the outcome of an acquisition (17:56)Why looking at the open-source community of companies being acquired is so crucial and often overlooked (22:13)How the due diligence process is different for an open-source startup versus a SaaS company (25:20)Michael describes how each core function in a company is affected by an acquisition (28:12)The advice Michael would give to founders to help them make peace with the outcome of an acquisition (33:42)How you can connect with Michael to learn more (37:02)Links:MichaelLinkedIn: https://www.linkedin.com/in/priorart/Twitter: https://twitter.com/SYOTFSCompany: https://www.aalyria.com/

Lars Kamp is the Co-Founder and CEO of Some Engineering, the makers of Resoto. In this episode, Lars describes what he’s learned from founding and working at multiple start-ups, as well as the main differentiators he’s experienced founding his first open-source startup. Lars describes his though process when it comes to selecting co-founders, and illustrates why it’s even more important to be discerning when selecting investors. Lars and I also discuss the advantages that open-source gives to founders who are focused on the distribution strategy for their product, and Lars reveals why he is a big proponent of having docs be a part of your product-led growth strategy. Throughout our conversation, Lars’ insights create a detailed picture of what second-time founders think about and how SaaS startup experience relates to open-source business strategy. Highlights:I introduce Lars, who is the CEO and Founder of Some Engineering (00:23)Lars describes what he does at Resoto and the user groups they work with (00:47)How a tweet by Jeff Barr inspired Lars and his co-founders to start working on Resoto (01:37)What it was like for Lars to start a company with co-founders he didn’t know very well (05:03)Why Lars went from working with closed-source SaaS companies to founding an open-source company (07:26)The main differences Lars has found between founding a SaaS startup and an open-source company (09:24)Lars describes the value he sees in investing in really good docs (10:44)Why Lars focuses more on distribution than product as a second-time founder (13:19)What third time founders think about and what they don’t (16:18)Lars’ advice to founders (18:40)Why Lars sees a big advantage in open-source business models, especially when it comes to distribution (20:09)The advice Lars would give himself if he could go back in time to the early days of Resoto(28:31)How to get in touch with Lars (32:23)Links:LarsLinkedIn: https://www.linkedin.com/in/larskamp/Twitter: https://twitter.com/l1rsCompany: https://some.engineering/

Amanda “Robby” Robson is a Partner at Cowboy Ventures and the co-host of the Open Source Startup Podcast. In this episode, Robby shares insights on what she’s looking for in open-source founders to potentially invest in, including the importance of being able to manage both your community and your paid model simultaneously. Robby and I also discuss the importance and pitfalls of choosing a monetization strategy, as well as the dangers of having too many monetization models too soon. Throughout our conversation, Robby highlights the specific challenges that open-source founders face, and how she’s seen successful founders either avoid or overcome them. Highlights:I introduce Robby, who is a Partner at Cowboy Ventures and the co-host of the Open Source Startup Podcast (00:22)Robby gives some insight into how she evaluates startups from an investment perspective, and the peculiarities that go into evaluating an open-source startup (00:45)The nuances of evaluating the market opportunity for an open-source company (05:20)A common mistake Robby seeks early stage founders make when evaluating their market size (08:06)Robby shares what she’s learned about best practices for seed-stage startups who are looking to determine their monetization strategy (10:02)The dangers of having too many monetization models as an early stage startup (13:22)Traits that Robby feels are most valuable for an open-source founder to possess (14:48)Robby reveals the common traps that open-source founders fall into (17:13)Why Robby feels that successfully monetizing an open-source company has more to do with resources than timing (19:46)Robby’s thoughts on whether she would ever found an open-source company and how she would approach it (21:18)How Robby’s thoughts have changed on whether open source projects need to intentionally become a company or vice versa (23:44)What it’s like to advice against the open-source business model as a venture capitalist (29:10)Links:RobbyLinkedIn: https://www.linkedin.com/in/amanda-robson-7227685b/Twitter: https://twitter.com/amanda_robsCompany: https://www.cowboy.vc/

Daniel Izquierdo, Co-Founder and CEO at Bitergia, shares his fascinating journey from academia to the open-source realm. He discusses the unique challenges and metrics involved in measuring open-source communities, emphasizing the importance of data contextualization. Daniel highlights Bitergia's cooperative model, focusing on sustainable growth for employees and customers. He outlines strategies for community engagement through data, the balance of open-source principles with business, and how they navigated different business models before finding their niche.

Leszek Manicki, Engineering Manager at Wikimedia Germany, shares his experiences with getting more contributors to open-source projects while maintaining high security standards. He discusses the challenges and lessons learned from Wikimedia's efforts, and gives recommendations for other organizations. Leszek also highlights the importance of simple architecture and the benefits of outside contributors. He shares his hopes for positive socio-economic change through representing a non-profit organization at a commercialized event.

Brian Proffitt, Senior Manager of Community Outreach at Red Hat’s OSPO, discusses the value of events for lead generation, testing positioning and messaging, and community-building efforts. He shares insights on measuring ROI, optimizing lead gen events, and maximizing the impact of community events. Proffitt emphasizes the importance of gathering live feedback, refining communication based on customer reactions at in-person interactions, and collaborating between events teams and marketing departments.