Monetization via Raising Venture Capital

AKA: Founding Startup

Getting funding to build a startup / company from the OSS using venture capital. Often a very good business case is required but can result in a stable income for the next years (even if the startup is not successful).


Variants & Options:



Characteristics Value Note
Effort to set-up Months Basically, setup of a full business and fundraising
Effort to maintain Medium In the beginning fundraising every 18 months; Later hopefully break-even, IPO, etc.
Cost to set-up Low Might require small investment in domain name, trademark, etc.
Cost to maintain None After seed-round the invested money can be used from the startup
One-time Income Low Accelerators or incubators might only contribute little on-time
Recurring Income Medium Probably a below-average salary but high potential when an exit occurs
Income Predictability Medium Stable for a runway of ~18 month; New fundraising necessary
Full income Threshold 10+ Probably several investors or angels necessary
Recipient C The Startup will get the investment but founders (probably maintainers) get a salary
Additional Work High Will require to build a pitch deck, business plan, website, etc.
Visibility High VCs get approached; Press will report
Necessity to pay Low High competition but easier with good business model
Entry Threshold High Clarification of copyrights; Due dilligence on Team, Tech, etc.
Countervalue Shares  
Scalability Medium Scales with the number of interested investors
Effort for marketing Medium Finding VCs & pitching is work but VCs are interested in investing
Competitors None If another group of maintainers would want to start a competing startup no VC would invest
Software types Special Often stand-alone software with (potentially) many users (e.g., tools, databases, OS, LMS, etc.)