Open source has moved from a niche practice to a default foundation for how software is built. In this episode, I’m joined by Joseph Jacks, founder and General Partner of OSS Capital, a venture fund focused exclusively on early-stage commercial open source companies.
We explore what makes open source companies different from proprietary software businesses, why Joseph built a focused fund in a world where many VC firms claim to invest in “great people building great companies”, and how OSS Capital often starts with a thesis on a project before even meeting the founders. We also dive into capital efficiency, community-driven product maturity, and why open source keeps expanding through a powerful mix of intrinsic and extrinsic motivations.
In this episode, you will learn:
why Joseph chose open source as an investment focus
why OSS Capital often invests in projects before teams
how open source changes diligence through public data and signals
what it takes to go from open source project to incorporated company
why commercial open source companies can be more capital efficient
how open source lowers friction in enterprise adoption and sales
why people contribute, and how intrinsic motivation sustains the flywheel
the leadership trait Joseph admires most: humility
Find the transcript in the companion blog post!
