About a week ago, I had the distinct pleasure of meeting with the charming Liz Knopf of OpenView Partners. We met for a drink and she was kind enough to enlighten me on how OpenView was revolutionizing the venture scene.
OpenView, founded in 2006 and on it’s 2nd fund, typically only invests in “expansion stage” software companies that are making about 500k per quarter and growing…and growing fast. Obviously these companies have achieved product/market fit and are no longer floundering to find their place in the business world – they just need to aggressively expand, something which takes a significant amount of dinero. Because these companies have found their market, and have found a repeatable sales cycle, the amount of inherent risk is incredibly limited compared to other startups. The risk that remains is operational, and it is a risk that OpenView seriously attempts to mitigate by providing strategic consulting to their investments. In fact, Liz goes so far as to say that OpenView isn’t a venture capital firm but rather a consulting firm that makes it’s money through capital gains.
It’s nice to see a firm that has this kind of culture.