Open Source and Indie Biz – Parallels

This is a supplement to an article published on Medium as well as on DarwianInterlude.  This page is under continual revision. It’s where I make note as they occur to me.

  • Parallels
    • The Makers
      • Like open source – Motivation is to do what we love in a way that expand possibilities for both ourselves and the wider community.
      • Like open source – Work is a source of meaning and a vehicle for our contribution to the wider society.
      • Like open source – Businesses start dedicated to our customers and vision and not to pumping something up and exiting.
      • Like open source – You should be capable of a stable release before getting too full of yourself.
    • The Community
      • Like open source – projects often begin as a natural outgrowth of the efforts of a community of interest.
      • Like open source – Makers are supported emotionally and financially to various degrees by the wider community.
      • Like open source – There’s a diversity of motivation around some common visions. Not all squashed down into a monetization or growth strategy. Unique visions of high quality endeavors.
      • In my biz gear constellates out of community. 60s backpacking. Appalachin Trail. The barrier between fan and pro is permeable. We want to stay connected to our passion and make a living.
      • Like open source – The product can scaffold up through this direct connection to community.
  • The Change
    • Kickstarter
      • Projects and premiums – Peak Designs and all those damn hammocks as eg.
    • Wefunder.
      • Premiums remain but can also offer equity/debt/profit-sharing. Synergy of premiums.
    • Facilitates further evolution in a direction that supports both the Makers and the wider Community.
    • Part of a recognition of the wider range of motivations for economic activity.  Another parallel = selfish gene, classical economics vs Sober & Wilson, Sante Fe Institute, Behavioral Economics. This has resulted in B-Corps, community capital programs, etc.
    • Removes the barrier to entry. Minimize risk to individual investors. Premiums as part of ROI and smaller amounts. (Up to 500 now, raising that is key.)
      Lower cost of allows a greater range of motivations. 50k 5k .5k
    • Intensify the community/maker connection. Extends companies as natural outgrowth of community.
    • Removes choke point where diversity of interests are squashed down to a narrow stock market / exit strategy.
    • Currently funding suffers from mono-culture in models.
  • Alignment of interest.
    • Should go both ways – value returned from equity. To align interests there should be significant equity position in same class of stock by founders. Common interest in a method to get value from the efforts of founders and the cash of investors. (SlingFin as example.)
    • Challenge – as in all small and/or privately held enterprises: liquidity when needed
      • Process has to acquire, absorb, transform and then secrete capital
        Implications of wider range of investment motivations?
      • Owning what you do vs exit = transfer of interest vs diffusion into uninterested capital. There are some promising experiments.

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