Research
OCV actively conducts research on open source software projects and recruits founders to join our companies. As a general screening criteria, we would only consider projects with a minimum of 20 monthly MR/PRs or 5,000 stars on GitHub. See detailed research process at:
Research processesFounder Outreach
[Write-up in process] - Link to prospective founder pages.
Internal Approvals / Conflict Checks
New company approval processes consist of two parts:
1. GP Approval
OCV team prepares project summary and intended business plan (in the internal research doc) for GP review.
Founder (CTO) compensation sign off proposal to the GP should include:
- Founder Name (with LinkedIn profile)
- Title
- Cash Compensation (in USD equivalent; provide justification)
- Equity (following framework from Founder Shares Guidelines and provide support around experience level)
- Options Pool Size (and intended allocation reserves)
- Start Date / Timeframe (if known)
- Any additional offer details
2. GitLab Conflict Check
New companies need to pass a conflict check with GitLab prior to an offer being sent. The conflict check requires that an email be sent to the GitLab team with the following information:
- The name of the OS project
- A link to the project
- A one sentence description of what the new company will do
Offers & Acceptance
After internal approval, OCV team prepares a verbal offer (via email) to outline the following understanding:
- Company Name (typically TBD; ideal company name is the same as the open source project name, pending name availability research)
- Entity Structure: C-Corp or PBC
- Title
- Annual Compensation in local currency (and ~USD equivalent)
- Equity: % and vesting details
- Confirm whether founder would like to purchase common shares or receive options
- OCV Funding detail with note around SAFE dilution:
- Sample language: Please note that the SAFE will convert into future preferred shares and will dilute all existing shareholders upon conversion. To protect potential dilution prior to the next round of equity financing, we’re reserving a X% options pool (for CEO and other employees).
- Options Pool size
- Target Start Date
- Confirm purchase of existing domain name(s) for USD 1 (if applicable).
In this email, we also request founder’s mailing address, phone number, date of birth (for certain registration and banking system setup requirements).
Once a founder provides verbal acceptance of our offer, follow the process outlined below to draft and send out an indicative offer letter via DocuSign:
Founder Offer Letter (Indicative)Incorporation Process
OCV moves to company formation process below after receiving signed founder offer letter. Steps 1 and 2 may be discussed as part of the verbal acceptance process.
Step 1: Choose the company nameStep 2: Choose a legal entity structureStep 3: File incorporation paperworkStep 4: Issue equity to founders and advisorsStep 5: Establish the company’s options poolStep 6: Banking systems set upStep 7: Fund the business Step 8: Systems setupIn cases where a company is unable to secure Seed Round funding, OCV will follow wind down procedures below:
Company Wind Down