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The Hidden Playbook for Building Developer-First Open Source Companies

Free software doesn’t mean free from business tensions. Just ask Egil Osthus, CEO and Co-Founder of Unleash, who shared candid insights about building an open source company in a recent episode of Category Visionaries. His journey reveals a counterintuitive truth: the path to commercial success in open source requires putting business goals second.

When Unleash began, it wasn’t a company at all. It was a project created by developers, for developers. “It was launched as an open source because developers want to give back to community, share their code and really be part of a larger community,” Egil explains. Only after organic growth and adoption did they consider turning it into a business.

This origin story represents more than just another startup narrative – it embodies a fundamental principle of developer-focused companies: authenticity cannot be manufactured. As Egil puts it, “This is not something you can fake.”

The real challenge emerged when Unleash needed to balance community interests with commercial viability. While many companies try to restrict their open source offering to drive conversions, Unleash took a radically different approach. “Open source needs to be the best product for developers, individual developers,” Egil emphasizes. This stance often puts them at odds with their own sales team, who “want us to kind of just slim down the open source, make it like as few features, no support, anything.”

Instead of artificially limiting the open source product, Unleash developed a sophisticated segmentation strategy. Individual developers and small teams get everything they need in the open source version. Enterprise features only come into play “when you start scaling from individual developers into kind of teams, large organization, more kind of compliance needs.” This includes capabilities like single sign-on, role-based access control, and enhanced support – features that matter at scale but aren’t critical for individual developers.

The company’s approach to community building is equally nuanced. Rather than focusing solely on code contributions, Unleash carefully curates their community culture. “We always pick that version of the contribution that is having the author that is really truly living our values,” Egil reveals. This creates an environment where developers “feel welcomed, where you can kind of really exchange ideas, really challenge each other in a nice way to kind of lift up and have that growth mindset.”

This strategy has yielded impressive results, with 16.5 million Docker pulls and approximately ten thousand community members. But more importantly, it’s created a sustainable tension between commercial interests and community values. As Egil notes, “It’s a good tension if it’s done right and it’s a very bad tension if it’s done wrong.”

The key to managing this tension? Absolute transparency with your developer audience. “We are fortunate to deal with a very skilled audience or market. I mean, developers, they are bright people. They are seeing right through if we do not have integrity in what we do,” Egil explains. This reality shapes everything from product development to marketing approach.

For founders building developer-focused companies, this presents a clear framework: start with genuine value for individual developers, be transparent about commercial intentions, and only monetize features that solve enterprise-scale problems. The goal isn’t to convert every user into a paying customer – it’s to build a product so valuable that larger organizations naturally need more.

Looking ahead, Unleash sees feature management as just the beginning. “Software developer and software experts, I truly believe they will always be there one way or the other,” Egil shares. “So we are here to make developers everyday life easier and simpler.” This vision suggests that the real opportunity in developer tools isn’t just building products – it’s fundamentally improving how software gets built.

For founders navigating the complex landscape of open source business models, Unleash’s journey offers a valuable lesson: the path to commercial success doesn’t require compromising on open source values. Instead, it demands doubling down on them while finding creative ways to add value at scale.