Open Capitalist

Our goal is to create a self funding system.  As there isn't an existing sustainable funding method yet, it is being funded by my own personal resources and the graciousness of others.  This isn't sustainable and our long range plan is to fund future projects with the profit from current projects.  While the current projects are there to fund future projects we envision this as not needed long term.  Our goal after funding methods become stable is to move profit to endeavors that are traditionally non-profit. 

How do I get my project funded?  Our requirements are a little loose right now, but to provide some guidelines:

We will only fund projects that are open source.  As mentioned elsewhere, this is to create an environment that requires a project owner to be efficient.  This is required.

We would be much more likely to fund a project that offers to fund future projects.  As our goal is to become self-sufficient this is important, but there would be many circumstances where this isn't required.

Transparency is required.  We wouldn't be willing to just cut a check and hope for the best.  Nor would we expect anyone else to either.  If we fund you our investment will be well documented as will your expenses.

Is your project fundable?  Don't know, post it and find out.  We are not guarantying to fund anyone, but we guarantee not to fund things we don't know about.  Hence, post your project and bring people to it.  The projects that have the most interest are going to be the most interesting to us.  We have no way to create a structure that is applicable to every project so if your project looks promising we will contact you and work out the details.

What is Open Capitalist's cut?  Nothing.  It is encouraged to provide financial support to future projects if/when your project becomes successful.  Some of our projects might kick in some funds if it is required, but costs are very low right now.  This might change in the future but it will never be required of our projects.  Right now, and for the foreseeable future it will be self funded.

What if my project is unsuccessful?  No problem, it is an obvious risk and one we are happy to take.  Every investment carries risk, but we believe our system will create a risk/reward ratio that is more favorable then a traditional for profit company. 

What if my project is extremely successful?  Fulfill whatever contract exists between us and you can do whatever you want.  We don't stand to make a profit off of you one way or the other.  There is no way to have a boiler plate contract for this, but an example might be- provide updates on expenses bi-weekly, post your current design revisions, and we give you a thousand dollars a week for a year.  Worst case scenario - you decide to sell out, reneg on your contract and take your project private.  If we funded you your designs are right there for someone else to pick up and run with.  The lack of 'sell-outability' is inherent in the open source method.

What if my project is inherently not a money maker?  Those are the ones we want.  I posted a fire powered ice maker.  This is an example of a product that wouldn't have wide appeal.  However I want one, maybe a few other people would as well.  Maybe that posting will be enough to bring those of us that want one together and make it happen.  Your project probably isn't as far out there as you think.  Will we fund it?  Probably not now, but maybe in the future.

How much money is available?  A shocking small amount.  This will change, I have absolute confidence in this.

This is the portion that would include fine print stating this is not an offer for funding.  This would be written vary small with arcane words and not really have a lot of substance.  We will write it legibly and state while this is not an offer for funds it is an offer to potentially fund your project. <insert more legalese here>