ENTRIES TAGGED "funding"
I just invested in BioCurious’ Glowing Plants project on Kickstarter. I don’t watch Kickstarter closely, but this is about as fast as I’ve ever seen a project get funded. It went live on Wednesday; in the afternoon, I was backer #170 (more or less), but could see the number of backers ticking upwards constantly as I watched. It was fully funded for $65,000 Thursday; and now sits at 1340 backers (more by the time you read this), with about $84,000 in funding. And there’s a new “stretch” goal: if they make $400,000, they will work on bigger plants, and attempt to create a glowing rose.
Glowing plants are a curiosity; I don’t take seriously the idea that trees will be an alternative to streetlights any time in the near future. But that’s not the point. What’s exciting is that an important and serious biology project can take place in a biohacking lab, rather than in a university or an industrial facility. It’s exciting that this project could potentially become a business; I’m sure there’s a boutique market for glowing roses and living nightlights, if not for biological street lighting. And it’s exciting that we can make new things out of biological parts.
In a conversation last year, Drew Endy said that he wanted synthetic biology to “stay weird,” and that if in ten years, all we had accomplished was create bacteria that made oil from cellulose, we will have failed. Glowing plants are weird. And beautiful. Take a look at their project, fund it, and be the first on your block to have a self-illuminating garden.
New regulations could mark the end of proprietary finance.
Currently, anyone can crowdfund products, projects, causes, and sometimes debt. Current U.S. Securities and Exchange Commission (SEC) regulations make crowdfunding companies (i.e. selling stocks rather than products on crowdfund platforms) illegal. The only way to sell stocks to the public at large under the current law is through the heavily regulated Initial Public Offering (IPO) process.
The JOBS Act will soon change these rules. This will mean that platforms like Kickstarter will be able to sell shares in companies, assuming those companies follow certain strict rules. This change in finance law will enable open source companies to access capital and dominate the technology industry. This is the dawn of crowdfunded finance, and with it comes the dawn of open source technology everywhere.
The JOBS Act is already law, and it required the SEC to create specific rules by specific deadlines. The SEC is working on the rulemaking, but it has made it clear that given the complexity of this new finance structure, meeting the deadlines is not achievable. No one is happy with the delay but the rules should be done in late 2013 or early 2014.
When those rules are addressed, thousands of open source companies will use this financial instrument to create new types of enterprise open source software, hardware, and bioware. These companies will be comfortably funded by their open source communities. Unlike traditional venture-capital-backed companies, these new companies will narrowly focus on getting the technology right and putting their communities first. Eventually, I think these companies will make most proprietary software companies obsolete. Read more…
Micro-patronage could let researchers step around funding obstacles.
In our first science-as-a-service post, I highlighted some of the participants in the ecosystem. In this one, I want to share the changing face of funding.
Throughout the 20th century, most scientific research funding has come from one of two sources: government grants or private corporations. Government funding is often a function of the political and economic climate, so researchers who rely on it risk having to deal with funding cuts and delays. Those who are studying something truly innovative or risky often find it difficult to get funded at all. Corporate research is most often undertaken with an eye toward profit, so projects that are unlikely to produce a return on investment are often ignored or discarded.
If one looks to history, however, scientific research was originally funded by individual inventors and wealthy patrons. These patrons were frequently rewarded with effusive acknowledgements of their contributions; Galileo, for example, named the moons of Jupiter after the Medicis (though the names he chose ultimately did not stick).
There has been a resurgence of that model — though perhaps more democratic — in the modern concept of crowdfunding. Kickstarter, the most well-known of the crowdfunding startups, enables inventors, artists, and makers to source the funds they need for their projects by connecting to patrons on the platform. Contributors donate money to a project and are kept updated on its progress. Eventually, they may receive some sort of reward — a sticker acknowledging their participation or an example of the completed work. Scientists have begun to use the site, in many cases, to supplement their funding. Anyone can be a micro-patron!
Makers: don't worry about what DARPA will do to you. Think about what you can do to DARPA.
I read this piece in the New York Times the other day and have read it two or three more times since then. It dives into the controversy around DARPA’s involvement in hacker space funding. But frankly, every time I come across this controversy, I’m baffled.
I usually associate this sort of government distrust with Tea Party-led Republicans. The left, and even many of us in the middle, generally have more faith in government institutions. We’re more likely to view government as a tool to implement the collective will of the people. Lots of us figure that government is necessary, or at least useful, to accomplish things that are too big or hairy for any other group of citizens to achieve (in fact, a careful reading of Hayek will show even he thought so – commence comment flame war in 3 ..2 ..1 …).
So, to summarize, the right dislikes big government and typically the left embraces it. At least, right up until the moment the military is involved. Then the right worships big government (largely at the temple of the History Channel) and the left despises it.
Of course, I don’t know anything about the politics of the people criticizing this DARPA funding, just that they are worried that defense money will be a corrupting influence on the maker movement. Which would imply that they think Defense Department values are corrupting. And they might be right to have some concerns. While the U.S. military services are probably the single most competent piece of our entire government, the defense industrial complex that equips them is pretty damned awful. It’s inefficient, spends more time on political than actual engineering, and is where most of the world’s bad suits go to get rumpled. And there is no doubt that money is a vector along which culture and values will readily travel, so I suppose it’s reasonable to fear that the maker movement could be changed by it.
But what everyone seems to be missing is that this isn’t a one-way process and the military, via DARPA, is essentially saying “we want to absorb not just your technology but the culture of openness by which you create it.” That’s an amazing opportunity and shouldn’t be ignored. The money is one vector, but the interactions, magical projects, and collaboration are another, perhaps more powerful vector, along which the values of the maker movement can be swabbed directly into one of the most influential elements of our society. This is opportunity! Read more…
A storytelling platform gets funding, publishers are missing the mark on digital, and an overview of the ebook industry.
Wattpad gets funding for its social ereading and storytelling platform, Brett Sandusky muses on digital publishing, and Jeremy Greenfield takes a big-picture look at the publishing industry.
A new service lets authors pitch ideas and collect funding from readers. Would you donate?
With the launch of the Unbound.co.uk publishing platform, readers can fund the books they want to read — and the startup launched with some pretty big-name authors. Would you fund the next book from your favorite author?
A congressional committee will hear a "crowdfunding exemption" proposal next week.
Next week, Sherwood Neiss will testify in favor of a small offerings exemption for investments, which could spark a revolution in grassroots entrepreneurship.
An easy how-to on stripping DRM, venture capitalism hasn't dried up yet, and new ISBN ISO standards may be underway.
This week, Wired Magazine and Apprentice Alf schooled everyone in DRM stripping; LOLcats, social publishing and cloud archiving topped venture capital interests; and it may be time to move a digital ISBN ISO beyond an industry "recommendation."
Funny cats and social publishing catch the attention -- and funding -- of VCs.
Cheezburger Network, of I Can Has Cheezburger and FAIL Blog fame, Scribd, Sonian and Perfect Market raise investment funds.