Subject: Re: funding new projects, or initial development
From: John Gilmore <gnu@toad.com>
Date: Wed, 22 Apr 1998 15:16:27 -0700

Keith:
> Regardless, the initial development can't be funded using a free
> software model.

If you don't see how to do it, does that mean it can't be done?

If the theory says the bumblebee can't fly, perhaps it's time to
revise the theory.


Jonathan:
> My concern is being able to get new projects funded.

I used to have the same concern.  I no longer do.  I know one working
route to get new projects funded.  There may well be others.

	1.  Build a business on the cash-flow from supporting free software.
	2.  Add money from investors based on your growth and profitability.
	3.  Write new free software.
	4.  Lather, rinse, and repeat.

Cygnus has done this over the last 9 years.

It appears that the free market works; if you have a track record of
creating value, investors will help you create more, in return for a
share of it.  I think the problem Keith and Jonathan are having is
that they don't know how to create value in their companies without
making their software proprietary.  I do.  Bob Young does.  Learn from
us.

	John

PS:  See also http://www.lne.com/lemay/cartoon.jpg, "How to Form Your
Very Own Silicon Valley Startup", by Laura Lemay.