OpenView is an expansion-stage venture firm that helps build software companies into market leaders. To learn more about the firm, Pulse 2.0 interviewed OpenView Operating Partner Kyle Poyar.
Kyle Poyar’s Background
Poyar leads the firm’s value-add service teams, specifically the growth and marketing teams. And Poyar said that the firm is focused on supporting portfolio companies to fuel growth and become market leaders. He has been at OpenView for 7 years, and prior to this, he spent nearly 6 years at consulting firm Simon-Kucher focused on monetization and go-to-market strategy.
OpenView’s Thesis
OpenView has remained consistent in its investment thesis over the course of the last 16 years.
“We are focused on investing in the best business software companies at the expansion stage. We typically invest in that series A, B, or C stage where there is known product-market fit and where companies are poised for rapid growth. That is not changing with this new fund,” said Poyar.
Current Financial Climate
Is the current financial climate affecting the thesis?
“The current financial climate doesn’t affect our thesis, given there are strong markets in software still and the share of wallet for IT spend continues to grow. This is a uniquely attractive time to invest out of a new fund, and we are excited to get to work and connect with the next generation of entrepreneurs,” Poyar noted. “Given the market correction, companies are focusing their budget priorities on risk mitigation, cybersecurity being one of those areas, and on products that help them improve their bottom line profitability. We are seeing companies looking for more automation, and relying on software to help them drive efficiency and do more with less.”
Details About Fund VII
In late March, OpenView announced the closing of its seventh fund totaling $570 million, which will continue the firm’s dedication to partnering with high-growth software startups. This is the firm’s largest to date, enabling OpenView to support more entrepreneurs through this challenging macroeconomic climate.
Significant Milestones
What have been some of OpenView’s most significant milestones? Poyar cited a few points:
– OpenView’s latest fund VII is 25% larger than its sixth fund.
– OpenView coined the term product-led growth in 2016, which has become one of the biggest trends in software.
– OpenView led Datadog’s Series B in 2014. Datadog went public in 2019.
Success Stories
Upon asking Poyar about some of the firm’s success stories, he pointed out that their focus on the expansion stage for nearly 2 decades means that they have been a trusted partner to some of the biggest successes in software history. Some of the notable active and past investments include Calendly, Datadog, Expensify, Axonius, Highspot, and JumpCloud.
Assets Under Management
When I asked Poyar about the firm’s assets under management, he said that OpenView has raised a total of $2.4 billion across its seven funds. And OpenView’s seventh fund totaling $570 million represents a 25% increase over the sixth fund and is the largest to date. Plus with nearly 80 team members, OpenView has a two-and-a-half-to-one ratio of people to portfolio companies.
Industry Focus
What are some of the industries that OpenView is focused on? Poyar pointed out that the firm is interested in exploring all types of business software, but they are seeing interesting trends in product-led growth (PLG) as well as vertical software, particularly companies servicing “main street businesses” that have been typically under-served by software.
Differentiation From Other Firms
What differentiates OpenView from other firms?
“Any VC firm can write a check, but founders need someone in their corner. A partner who knows what it takes, who it takes, and how to get there. OpenView has an extremely focused investment strategy where we invest exclusively in software companies at the expansion stage,” Poyar replied. “We target seven to nine new investments per year, a concentrated approach that allows us to meaningfully support our portfolio companies post-investment. OpenView’s expansion team supports portfolio companies post-investment with go-to-market strategy, executive and mid-level hiring, and network and customer introductions.”
Future Goals
What are some of OpenView’s future goals?
“OpenView was founded in 2006 on a mission to improve people’s working lives. We invest in the best expansion-stage software companies, then work hard to help those companies become market leaders. Our goal is to continue to do this with Fund VII,” Poyar concluded.
