When it comes to software development, history has shown that niche products can often lead to profitable new markets. The challenge, of course, is discovering that the niche is there. microPledge uses the power of crowdfunding to uncover untapped demand and, in the words of its founders, "get software made."
The idea is simple. Anyone with an idea for useful software can submit it on the site. Others who like it can then pledge money to help see the vision realized. Developers browsing the site can submit quotes for creating the software; the one with the best quote after two weeks is chosen for the job. Those who pledged, meanwhile, get to have a say in how the product takes form. The New Zealand-based site was launched in August by three business-minded brothers. They explain: "Being people with plenty of ideas, we kept wanting to start projects—the kind we knew people would find interesting. If we could only get people to pledge to support them ... Then one day it dawned on us that we had to run the service ourselves."
microPledge currently focuses on open source projects, for which it receives no payment, but ultimately it plans to diversify to include a variety of commercial projects and to charge a portion of the funds pledged. The site also offers a USD 20 "incubator" service to help protect innovators' ideas. About 160 users and 75 projects have populated the site so far, and its founders are interested in mutually beneficial partnerships to help it grow.
In addition to a marketplace for software development, microPledge reckons its site will come to be viewed as a free market-testing service to gauge the reception for new software products and features. Interesting example of the intention economy at work: when consumers have to put their money where their mouth is, it's a pretty good bet you can believe what they say. Time to consider how micro-pledging could be applied to your industry. If not to raise funds, then at least to find out what your customers really want.
Website: www.micropledge.com
Contact: info@micropledge.com
Spotted by: Adrian Scott
Adrian @ Springwise.com:
You've done it again! Thanks for cheerleading the efforts of savvy businesses to make open source microfunding a coming trend. The idea of "putting your money where your mouth is" gives traction to a software idea that otherwise might get bench-raced to death and never see daylight. Crowds do have their own kind of knowledge and insights so using them to source/fund business ideas is not so crazy afterall. How's the soccer team coming along, BTW? This piece is right on target for my audience, so I cross-posted on your piece to http://blog.innovators-network.org The Innovators Network is a non-profit dedicated to bringing technology to startups, small businesses, non-profits, venture capitalists and intellectual property experts. Please visit us and help grown our community!
Best wishes for continued success,
Anthony Kuhn
Innovators Network
I think Cambrian House (www.cambrianhouse.com) is trying to do something on that line.
Interesting stuff. Well up for all things open source!
New site on the crowdfunding block - IndieGoGo.
IndieGoGo is an online social marketplace connecting filmmakers and fans to make independent film happen. The platform provides filmmakers the tools for project funding, recruiting, and promotion, while enabling the audience to discover and connect directly with filmmakers and the causes they support. Since launching at Sundance 08, filmmakers have successfully raised thousands of dollars with DIWO (Do It With Others) funding.
I would like to know ,what are the legal restrictions on crowdfunding websites. No one wants to get in trouble with the US goverment, or what about offshore?
Come on over to www.biracy.com and see how we are structuring our crowdfunding process. We'll be in full beta by the end of October 2009 so if you can't get on just preregister and we'll send you a note when we go live.
We cover all the issues and will be making our platform available to media producers as early as November.
thanks