Onyx Open Source Enterprise Search: Why They Think They'll Win

The Challenge of Internal Data Access for Enterprises

Many organizations possess substantial amounts of internal data and information crucial for employee tasks and customer interactions. However, locating the necessary information can often prove difficult and time-consuming.

Onyx: An Open-Source Enterprise Search Solution

Onyx is focused on resolving this issue with its internal enterprise search tool. While other companies, such as Glean – which has secured $600 million in venture capital – are also competing in this expanding market, Onyx distinguishes itself through its open-source nature.

The platform can be deployed within approximately 30 minutes and integrates with over 40 internal data sources, including popular platforms like Salesforce, GitHub, and Google Drive.

Origins and Founding Story

Chris Weaver, co-founder and co-CEO of Onyx, explained to TechCrunch that the company’s inception stemmed from challenges he and his co-CEO, Yuhong Sun, encountered in their previous engineering positions.

“Even with a general understanding of where information resided, it remained challenging to locate, particularly for new team members,” Weaver stated. “We believed a more efficient solution was attainable.”

From Previous Ventures to Onyx

Onyx represents Weaver and Sun’s subsequent entrepreneurial endeavor. Their initial project, a live statistics application for Twitch streamers, was impacted when Twitch discontinued embedded streams, rendering the product unviable.

A subsequent website designed to facilitate comparisons of specialized keyboards also failed to gain traction.

Leveraging AI and Open Source

However, with Sun’s expertise in machine learning and the advancements in AI technology, Onyx – initially known as Danswer – proved to be different. The original open-source project, launched in 2023, quickly garnered significant interest and valuable feedback.

Sun recounted that Ramp was among the first teams to discover their project, even before any paid options were available. “The fact that people were willing to pay for a free project indicated a strong market demand,” she noted.

Current Enterprise Clients and Growth

Currently, Onyx collaborates with numerous enterprises, including Netflix, Ramp, and Thales Group. The company attributes its success largely to its decision to adopt an open-source model.

This approach has enabled organizations to experiment with the tool and bypass protracted enterprise sales processes.

The Power of Open Source for Scalability

“Open source is the most effective method for scaling this type of solution and achieving widespread adoption across businesses globally,” Weaver asserted.

Competitive Landscape

Despite their confidence in the open-source strategy, Onyx acknowledges the competitive nature of the internal search market. They face competition not only from startups like Glean but also from companies developing their own internal solutions, such as Klarna with its Kiki tool.

Onyx as a Foundational Tool

Onyx remains undeterred, viewing itself as a foundational tool for companies seeking to construct their own internal search capabilities. Weaver believes the usage statistics demonstrate their progress.

“We’ve experienced explosive growth in usage, peaking at over 160,000 messages in a single week,” Sun reported. “We aim to capitalize on this organic growth and ultimately become the preferred search solution for teams worldwide.”

Recent Funding and Future Plans

The company recently secured a $10 million seed funding round, co-led by Khosla Ventures and First Round Capital, with participation from Y Combinator and several angel investors.

These investors include Gokul Rajaram, former board member at Coinbase and Pinterest; Arash Ferdowsi, a co-founder of Dropbox; and Amit Agarwal, the former chief product officer of Datadog.

Onyx intends to utilize these funds to expand its team and develop additional premium features.