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Going open-source as a VC-backed company

[Lucas da Costa at Briefer]

"Some people call our strategy "open-core" and that's technically right. Still, I'd rather say that we have two pieces of software: one that is open-source and another that is not. I think that's more honest because we're not trying to hide the fact that we're selling a non-open-source version of our software."

This is a pretty honest take on open sourcing a product in a VC-funded startup, which needs to maintain a certain level of valuation growth to justify its investment.

Someone in edtech once told me that if I held back any of a product I was building that they would tell their substantial network not to use it. I don't think that's fair: I'm not sure there's much to be gained by making features that are mostly used by wealthy companies free. This is particularly true when owning your licensing means you still retain optionality to provide a lower-cost or zero-cost license for certain organizations.

I also like this reason for open sourcing their core product:

"Finally, by going open-source we commoditize our competitors' core functionality. This means they now have to compete against us in terms of innovative features, performance, and price, all of which are usually not their strong suits, let's be honest."

When executed well, and used against high-priced enterprise software in particular, this approach deflates closed-source business models and can be a real competition lift. I like that Briefer is naming that.

The one piece I don’t agree with is this:

"Open-source helps us manage Briefer's roadmap along with our users because there will be more of them, and because they'll have access to the source code. That way, they can help us figure out where to go, and help us get there by implementing what they need."

My experience in open source is that it doesn't absolve you from needing to keep a tight hand on the product steering wheel. Your open source community can actually muddy the water here, because open source users aren't always the same thing as customers, and may need a different set of features or functionality. Maintaining a coherent product vision is harder in open source, not easier.

Still, this was a lovely post to read, and I appreciate the open thinking. It certainly made me want to check Briefer out.

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