Companies whose business centers on the development of open-source software employ a variety of business models to solve the challenge of how to make money providing software that is by definition licensed free of charge. Each of these business strategies rests on the premise that users of open-source technologies are willing to purchase additional software features under proprietary licenses, or purchase other services or elements of value that complement the open-source software that is core to the business. This additional value can be, but not limited to, enterprise-grade features and up-time guarantees to satisfy business or compliance requirements, performance and efficiency gains by features not yet available in the open source version, legal protection, or professional support/training/consulting that are typical of proprietary software applications.
Andrew "bunnie" Huang is an American researcher and hacker, who holds a Ph.D in electrical engineering from MIT and is the author of the freely available 2003 book Hacking the Xbox: An Introduction to Reverse Engineering. As of 2012 he resides in Singapore. Huang is a member of the Zeta Beta Tau fraternity, and a resident advisor and mentor to hardware startups at HAX, an early stage hardware accelerator and venture capital firm.
Bountysource is a crowdsourcing website for open source bounties and since 2012 also for crowdfunding. Users can pledge money for tasks using micropayment services that open source software developers can pick up and solve to earn the money. It also allows large-scale fundraising for big improvements on the project. It integrates with GitHub using its bug tracker to check if the problem is resolved and connect the resolution with GitHub's pull request system to identify the patch. When the users agree that they are satisfied and the project maintainer merged the proposed changes to the source-code, Bountysource will transfer the money acting as a trustee during the whole process.
Fan-funded music is crowdfunding for music. Often, fan-funded music occurs in conjunction with direct-to-fan marketing. Fans of music have the option to donate and collectively raise money with the goal of jump-starting the career of a given musical artist. The fan-funding of music occurs primarily through web-based services using a business model for crowdfunding. Fans are typically given rewards based on their monetary contributions.
Kickstarter is an American public benefit corporation based in Brooklyn, New York, that maintains a global crowdfunding platform focused on creativity. The company's stated mission is to "help bring creative projects to life". As of February 2023, Kickstarter has received $7 billion in pledges from 21.7 million backers to fund 233,626 projects, such as films, music, stage shows, comics, journalism, video games, board games, technology, publishing, and food-related projects.
Indiegogo is an American crowdfunding website founded in 2008 by Danae Ringelmann, Slava Rubin, and Eric Schell. Its headquarters are in San Francisco, California. The site is one of the first sites to offer crowd funding. Indiegogo allows people to solicit funds for an idea, charity, or start-up business. Indiegogo charges a 5% fee on contributions. This charge is in addition to Stripe credit card processing charges of 3% + $0.30 per transaction. Fifteen million people visit the site each month.
Video game development has typically been funded by large publishing companies or are alternatively paid for mostly by the developers themselves as independent titles. Other funding may come from government incentives or from private funding.
FundRazr is a free crowdfunding and online fundraising platform released in 2009. FundRazr operates internationally in 35+ counties with the largest markets being United States, Canada, United Kingdom and Australia. It allows users to run a wide-range of crowdfunding campaigns by creating fundraising pages and sharing it via social media, messaging apps, email and more to raise money for over 100 types of causes such as nonprofit, medical care, education, community help, poverty alleviation, arts, memorials, and animal rescue causes. FundRazr also works with more than 4000 nonprofits, charities and social enterprises with an advanced fundraising toolset for free. The digital fundraising platform provides 8 different campaign types. They include microproject fundraising, peer-to-peer campaigns, wishlist campaigns, recurring donations, branded sponsorship campaigns, DIY projects, sweepstake campaigns, and storefront campaigns.
Crowdcube is a British investment crowdfunding platform, established by Darren Westlake and Luke Lang in 2011.
Bohemian Guitars is an Atlanta-based guitar manufacturer that makes custom electric guitars, basses, and ukuleles using unconventional materials.
Novena is an open-source computing hardware project designed by Andrew "bunnie" Huang and Sean "Xobs" Cross. The initial design of Novena started in 2012. It was developed by Sutajio Ko-usagi Pte. Ltd. and funded by a crowdfunding campaign which began on April 15, 2014. The first offering was a 1.2 GHz Freescale Semiconductor i.MX6 quad-core ARM architecture computer closely coupled with a Xilinx FPGA. It was offered in "desktop", "laptop", or "heirloom laptop" form, or as a standalone motherboard.
CrowdsUnite is a website intended to serve as a review site for online funding platforms. It provides user reviews of crowdfunding sites which can be helpful for business owners who find it difficult to select from the many options. The site was created to adapt to the growing popularity of crowdfunding, which has captured the attention of cable TV producers and prominent figures. CEO Alex Feldman stated that he is "trying to become a Yelp for the crowdfunding industry, a resource that anybody can use."
Onevest, a New York–based investment crowdfunding site for startups that was acquired by Business Rockstars in April 2018, allowed entrepreneurs to raise capital from accredited investors. In July 2014, startups launching on Onevest had collectively raised over $66 million.
Fig was a crowdfunding platform for video games. It launched in August 2015. Unlike traditional crowdfunding approaches like Kickstarter, where individuals can back a project to receive rewards, Fig used a mixed model that includes individual backing and the opportunity for uncredited investors to invest as to obtain a share of future revenues for successful projects. At the end of 2017, four projects had begun generating returns, returning 245% to Fig investors.
Crowdfunding is the practice of funding a project or venture by raising money from a large number of people, typically via the internet. Crowdfunding is a form of crowdsourcing and alternative finance. In 2015, over US$34 billion was raised worldwide by crowdfunding.
Librem is a line of computers manufactured by Purism, SPC featuring free (libre) software. The laptop line is designed to protect privacy and freedom by providing no non-free (proprietary) software in the operating system or kernel, avoiding the Intel Active Management Technology, and gradually freeing and securing firmware. Librem laptops feature hardware kill switches for the microphone, webcam, Bluetooth and Wi-Fi.
Alexandra Daly is a crowdfunding consultant and author.
Purism, SPC is an American computer technology corporation based in San Francisco, California and registered in the state of Washington.
