Open Source Funding

I know there are many newly started, or about-to-start businesses out there just waiting for an investor to jump in and help them. Well, now’s your chance. Hi-tech entrepreneur, Mark Cuban, has developed his own private stimulus plan for small business, and is willing to consider funding existing, or start up businesses. If you are looking for “jump start” money, this program may be for you.

Here is what Mark said initially on his blog:

Rather than trying to be a Venture Capitalist, I was looking for an idea that hopefully could inspire people to create businesses that could quickly become self funding. Businesses that just needed a jump start to get the ball rolling and create jobs. Im a big believer that entrepreneurs will lead us out of this mess. I just needed a way to help.

So here it is. Some people will love it, some will hate it. It is what it is.

Some of Marks rules for funding may be outside the box, but he moves fast, and if your business qualifies, you may be funded very quickly.

This is certainly not the only way to fund your business, but it is an interesting concept, and well worth taking a look at.

For more information and all the details on applying for funding, go to Marks blog.

Good luck!

8 thoughts on “Open Source Funding”

  1. Mark Cuban posted a followup to his original offer, wherein he said “As is usually the case with any blog post, the vast majority of people don’t actually read the post before they write a response.”

    He also reported that he is funding two companies, and is visiting five others he is interested in funding. You’re right, it is an interesting concept. Let’s hope it catches on, since small business is getting very little from the stimulus package.

    Thanks for the comment–they are always appreciated.

    Bob Foster’s last blog post..Small Business–Caught in the Middle

  2. I have read Mr. Cuban’s post and it is indeed interesting. This idea of open-sourcing seems cool, but it also seems like a plan for fat cats, not necessarily Mr. Cuban, to get fatter still, simply by stealing intellectual property. They have the means.

    After a number of bad expriences that seemed so very promising, only to see them rolled out by another, I hesitate to post anything via this open medium, although I am brimming with great ideas that I have committed to paper and those that are profitable right now and definitely scalable.

    Judith Ellis’s last blog post..Being Bobby Jindal II

  3. Project Management Consulting – I believe that Mark Cuban is very serious about lending money to worthwhile ventures. However, for an applicant to actually receive funding, they MUST adhere to the 14 rules for submission that Mark posted on his blog. Ignore one, and your business plan probably won’t be read.

    The toughest rules for most businesses are no. 3 (business must have breakeven cash flow withing 60 days), and no. 4 (business must be profitable within 90 days) These are difficult things for a startup to accomplish, so you need to consider carefully whether Cuban’s investment plan is for you.

    Bob Foster’s last blog post..Small Business–Caught in the Middle

  4. Judith – I have never met Mark Cuban, but I did see him on “Dancing with the Stars.” He wasn’t one of the best dancers, but I was extremely impressed by how hard he worked. With Mark’s work ethic and his varied interest in many investments, it would not surprise me if he was interested in flowers.

    As far as investors investing in things that matter to them…I think it is more that they invest in things they know. That is why it is so important to find an investor that has had experience in your business area. For instance, an investor that specializes in investing in hi-tech software is probably not going to be interested in investing in a new device for planting wheat. This is a mistake that many new entrepreneurs make when they first seek venture capital.

    Regarding the issue of intellectual property. This has been discussed to no end over many years, and my view is that; it depends on the idea. With many hi-tech ideas, the latest idea is usually obsolete before the paperwork can be completed to protect the idea. The objective here then, is to be the “first to market”; establish yourself as the best in that area, and then quickly move on to your next new innovation. In other words, always stay ahead of the competition, and let them be copycats if they want to. (This may not be the most popular view, however).

    For other ideas, say a biotech breakthrough that may produce one product with a long life span—this is the kind of thing one would want to keep secret and protect with everything available.

    Legitimate investors don’t steal ideas—they simply want to be a part of the success of your idea, and are willing to invest their money to help both parties. As you become successful, so do they…and they rarely have to do any of the work.

    Bob Foster’s last blog post..Small Business–Caught in the Middle

  5. Yes, Bob, I thought so after having four meetings with three SVP’s on a major bank proposal some 8 years ago only to see my plan rolled out in a brochure a year later. But I am not sour on investors. I did become a bit more cautious, though, after the second time with another very reputable institution.

    I too do not know Mark Cuban and my comment was not directed towards him. Missed him on “Dancing with Stars.” He definitely seem like a competitor as anyone would know watching him on sidleine with while his team is playing. He does seem like a likeable guy. Thanks for your words; they are helpful as usual.

    Judith Ellis’s last blog post..Being Leontyne Price

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