Open-Xchange started out in 2005 with an idea to create a real alternative to Microsoft Exchange, the US giant’s web-based email software application. Thanks to venture capital backing from BayBG, eCAPITAL, Hermann-Josef Lamberti, United Internet and others, Open-Xchange developed a web-based package that goes beyond email to incorporate documents, diary and social media that can be used on smart phones or tablets. Fully utilising the scope of its board mandates, eCAPITAL has regularly acted as a thought leader and moderator in discussions to design product and sales strategy as well as exit road maps. The result is that today Nuremberg-based Open-Xchange reaches 110 million users and has offices in San Jose, California, and Kuala Lumpur in Malaysia.
The entrepreneurial approach of eCAPITAL has been evident in our close interaction. The term ‘Smart Money’ is often used but really applies in this case.
Rafael Laguna CEO, Open-Xchange
What did the business need?
- Support to expand into Asian markets
- Investment in software development
- Accelerated international sales growth
How did venture capital backing create lasting value?
- Helped management design a market-ready product strategy and guided implementation
- Assisted with acquisitions of other technology companies to fast-track development
- Expanded management board with highly skilled personnel
- Improved software quality and reduced customer complaints
- Gave board-level support in M&A initiatives and negotiations with strategic investor
What outcomes did venture capital investment achieve?
- Established a market leader in email services
- Strengthened revenues from existing customers
- Increased revenues by 45% a year from 2008 to 2013, reaching over €10m in 2013
- Reduced customer complaints by 40%
- Reached 110 million users worldwide
- Acknowledged as fastest-growing IT company in Germany with “Technology Fast 50 Award”