To fund this project, we must take a hybrid approach – development fund contributions and self-funding. Once self-funding options have been unlocked through the development of the open source software, we can gradually shift to a mostly self-funded approach. Some self-funding options may require investment from impact-first, mission-aligned investors.
Development fund
We maintain a development fund – a dedicated pool of money used to support ongoing development of the open source software – individuals and businesses can contribute by donating. In return – free high-quality software that delivers significant value for the entire ecosystem.
Mission alignment
Development fund contributions keep the project true to its mission, with choices shaped by users, community collaboration, and what's best for the ecosystem.
No investors
Open source software delivers ecosystem value, not direct revenue. Investors aren't required or suitable – they seek a financial return the project cannot provide.
Funding allocation
Salaries, software, hardware, legal, and operations.
Required funds
I estimate 4000-5000 hours of my time to complete the core, or roughly 24-30 months. Funding must cover my full-time salary, compensation for additional contributors, plus software, hardware, brand creation, and legal protection costs. A minimum of £400k.
Technically, I can complete most of the work myself. However, bringing in the right people at the right time can speed up development – this could require additional funds.
Risk reduction
If, for any reason, the project cannot be completed, all remaining funds will be refunded to contributors, minus transaction fees. Many contributors will have received significant value through the blog.
Transparency
We provide annual financial reports to ensure transparency regarding the use of donations. For annual donation totals of up to £200k, we self-report, whilst donations exceeding this amount undergo an independent audit. We also offer periodic reports.
Strategic investment
Development fund contributions can be seen as strategic investments. Payments to help ensure long-term software quality, high value, and lower costs. The ROI is the product's existence.
Donations-only approach
Some open source software (OSS) companies adopt a donations-only approach, allowing them to dedicate their full attention on building and improving the OSS, rather than divert efforts towards revenue-generating business activities.
Once core development is completed, we could continue to take this approach for a while, depending on how much money we have in the development fund. For a five-person team, we would likely need upwards of £500k in donations each year.
Self-funding
Development fund contributions help finance the OSS, enabling the creation of self-sustaining revenue streams. Each stream can operate as a division or subsidiary of the parent company, with its own brand identity and website. A percentage of the profits from each entity (eg 10–30%) can be funnelled into the OSS – a separate not-for-profit (CLG) company, ensuring its continued growth and development.
hosting
Division mix
For long-term sustainability and revenue predictability, we plan to gradually shift to a mostly self-funding model. The timing, selection, and scale of our revenue streams depend on factors such as:
- How much of the OSS has been developed?
- How much funding is available for development?
- How much runway do we have left?
- How are donation trends evolving?
- Community input
- How much demand is there for a particular product?
- Team preferences
Managed hosting
One simple price plan with pay-monthly and PAYG add-ons. Choose your hosting location: Amsterdam, Singapore, Melbourne, Toronto, or Dallas. Regional customer support. We can offer trademark licenses, allowing hosting companies, for example, to use our brand name.
We can take pre-orders and use those funds to build infrastructure and pay for staff and development. We may require funding from impact-first, mission-aligned investors.
Agency
Build, maintain, and optimise websites and apps for clients.
Training
Offer premium website/app design and development training courses. We can also offer these courses to employees through our intranet.
Other
Social/content platform, search, and other options.
Impact-first
If a division requires investors, then they should be impact-first and mission-aligned. Impact VCs or impact angels (let's call these cherubs). Profit sharing, and/or small non-voting equity positions that the company can repurchase. The division would be converted to a subsidiary.