Merit Systems has raised $10 million to reward open-source developers, co-led by Andreessen Horowitz and Blockchain Capital
They recently announced their funding, co-led by Andreessen Horowitz’s crypto fund and Blockchain Capital. Ragsdale, the CEO, explained that many contributors to open-source projects don’t get the recognition or financial support they deserve.
Open-source software is everywhere, from AI frameworks to mobile apps. Yet, there’s no solid way to reward the individuals behind these contributions. Sproule mentioned that the current system relies too much on goodwill, which isn’t sustainable.
Chris Dixon from Andreessen Horowitz noted that open-source is often underfunded. He believes Merit is on the right track by creating a system that fairly compensates contributors based on their impact.
The team is still developing their project, but they’ve already reached a valuation of $55.5 million. They plan to launch more widely by February after refining their product with feedback from early users.
Ragsdale and Sproule met during their college days, and they later teamed up with Hall, who also has a background in crypto. They’re excited about the potential to connect software users directly with the creators.
The trio works out of the historic Domino Sugar Factory, which has been transformed into a modern office space. Ragsdale appreciates the building’s history, saying it adds to their startup’s narrative.
Merit Systems aims to grow its team soon, looking for people who value in-person collaboration. They believe that face-to-face interactions spark creativity and innovation, especially in the early stages of a company.
