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FY26 Q3 board pre-read: the case for funding Open Design's enterprise edition — the growth evidence, the burn math, the options on the table, and the single approval the board must make before page five.
Management asks the board to approve $18M in incremental FY26 spend to ship SSO, audit logging and on-prem deploy — converting 76,000 GitHub stars and 1,240 paid teams into the enterprise revenue that closes our burn-multiple gap before Q2 FY27.
Keep shipping community features only. ARR grows to ~$12M organically, but runway falls to 6 months by Q1 FY27.
$18M to ship SSO, audit log and on-prem in two quarters — converts pipeline into ARR and extends runway to 19 months.
Close-source the daemon and charge per seat. Solves burn fast but breaks the Apache-2.0 promise that drives our growth.
Raise on current terms to buy time without changing the plan. Preserves optionality but dilutes the cap table by ~22%.
Compliance teams need audit logs before they will self-host anything.
HIPAA-adjacent buyers want on-prem, not another SaaS vendor.
Procurement requires SSO and a signed DPA before any pilot converts.
220-seat deals are blocked on team roles and billing, not price.
Platform teams want a stable API contract, not a UI license.
Campus IT wants SSO through existing SAML, nothing exotic.
Board signs off on $18M and the two-quarter scope.
Hire six engineers against SSO, audit log and on-prem in Q3.
SSO and audit logging reach general availability by Q4.
Convert five pipeline accounts to paid pilots by Q1 FY27.
First annual enterprise contracts sign by Q2 FY27.
Every $1 of new ARR costs $1.60 in net burn — the math of giving away the core with no enterprise layer to monetize it.
Enterprise contracts convert at 3–5x the revenue per account of community upgrades, halving the burn multiple within two quarters of GA.
Finance reports burn multiple and pipeline monthly.
Actuals are compared against the 19-month runway model.
Any 10% variance triggers an off-cycle board memo.
The board can pause funding at either quarterly gate.
SSO and audit-log work needs senior platform engineers; the talent market for local-first infra is thin.
Procurement cycles for on-prem deploys average 4-6 months; pilots may slip past Q1 FY27.
Without enterprise conversion, current runway forces a down round or a reduction in force before FY27 opens.
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Two-quarter scope: SSO, audit logging, on-prem deploy — funded against existing runway plus this allocation.
Accountable for GA of SSO and audit logging by end of Q4 FY26.
Accountable for converting five pipeline accounts to paid pilots by Q1 FY27.