Virginia's Blog

The question how does the fact that the company uses open source influence on it’s attractiveness in term of money raising.

The results:

“Companies saw their stock price rise if they met one crucial condition: explaining how they expected their open strategy to bring in short-term revenue. Companies that clearly communicated a short-term revenue model saw an average stock-price increase of 1.6%. Companies that didn’t saw an average decline of 1.6%.”

What it means for you?

That if you have a company that you switch to open source you better have an explanation that would tell the investors how this change would increase the short term profits. Investors want to see concrete short term reason not just for open source but for all other things so in this context this is no surprise.

You can read more about the research at the Risk Factor.

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