Open Source Venture Capital by Mark Cuban

Maybe we should pitch? I dunno (we are looking for capital to grow and hire people … go figure). Here is his post.

His criteria are simple, and quite good:

You must post your business plan here on my blog where I expect other people can and will comment on it. I also expect that other people will steal the idea and use it elsewhere. That is the idea. Call this an open source funding environment.

If its a good idea and worth funding, we want it replicated elsewhere. The idea is not just to help you, but to figure out how to help the economy through hard work and ingenuity. If you come up with the idea and get funding, you have a head start. If you execute better than others, you could possibly make money at it. As you will see from the rules below, these are going to be businesses that are mostly driven by sweat equity.

I will invest money in businesses presented here on this blog. No minimum, no maximum, but a very specific set of rules. Here they are:

That is, for him to invest, you have to open your idea up. If it is defensible, and you have a shot, he might sign on. However, he might not.

How is this different from the VC meet/greet events that you have to pay $1000+ for, in order to present your idea to “funders”? Its not? Hmmm… ok, apart from the $1000, it isn’t. And since it is unlikely you will get funded … it is really more similar to these events than you might think.

That is, this is a good idea. I had proposed using the SBA as a way to get money to small businesses in need, Mark suggests jumpstarting risk taking.

He is right.

Have a look at his post and his comments.

We need more folks with capital thinking about how to leverage it like he is talking about. Sort of like Y-combinator or similar “incubators”.

On Scalable‘s side, we have a good story and will be looking for money to help us grow (or a friendly acquisition to get us the resources to go after larger markets) soon. We need to build demo units, run benchmarks, get more code on the accelerators … Many more things in the queue as well that we would love to do if we had the capital. But we don’t, so every dollar counts. We have product in market, customers, are cash flow positive and profitable. Meet all of his criteria.

Would we post to this? I dunno. Huge noise level, very little signal in the comments to him.

Regardless, more power to him, and I hope this is successful. I’d like to see more of this.

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One thought on “Open Source Venture Capital by Mark Cuban

  1. RE; Executive Summary / Pitch

    Dear

    All mobile phone companies they all have the same seminaries for example they all snap pictures, they all browse the internet, and most of all they all make calls. Different shapes and colors, so what really is the difference when a company drops a new phone .NOTHING, you buy it, you use it, and you pay a ridiculous bill.

    Klub w, one of klubw products is a mobile phone that of course do the tradition things like other cell phones but much more. For example the apps on the screen are logos from 100 different companies. Let???s use one app for example, mc Donald???s customers would be able to order a full meal from there phone just like if they were standing in front of a casher, full menu pop up on the screen. When the customer hit the buy button that order goes to the closes mc Donald???s to the customer. At the same time mc Donald???s will view the E.T.A time the customer will arrive and have they order ready.

    Once the customer enters mc Donald???s will head straight to klub w register (other product from klub w) placing the phone down on the register platform without having to say a word to the casher? The casher will then match the order number on the screen to the order number on the bag. This process without any money transaction. 95% faster than mc Donald???s customer service time.
    The great part about this phone is every time a customer orders food from any of the 100 apps companies they pay half price.
    Example mc Donald???s # 1 big Mac meal is $6.00 my customers only pay $3.00 mc Donald???s will receive full payment of $ 5.90
    How is this possible I have the platform to make it a reality?
    What this dose for mc Donald???s increase sales, service and convenience
    What this dose for customers save money and time.
    What licenses fee would mc Donald???s pay for some thing like this, let???s do the math
    If an average customer without this system in play visit mc Donald???s three times a day and this same customer with this system in play WILL visit mc Donald???s at lease TWO times, why , because great fast service , save money , and more convenience.
    Wows a mobile phone that actually pay you to use it or that actually put money back into the customer packet every app that is touch.
    My question which phone will the customer buy.
    One that pays to be use or one that adds up bills

    My name is Marcus C. Williams, I have formulated a plan that will change the face of commerce and distribution as well as consumer technology as it is known today. This Plan will be integrated into the company which I am creating. It will be called Klub W. My company will offer to consumers more affordable medical and dental services, in addition to pet health care. Also, it will significantly drop mortgage and auto loan rates. Klub W will lead the competition and set the standard for other companies to follow. The Blue Print Plan will create a new market and create new job openings.
    This innovative system will be beneficial to both the marketing industry and the average consumer. Its ease of operation and convenience will revolutionize the current methods of purchase and distribution. McDonald???s leads the fast food market in fast customer service. The fast food chain that adopts my plan will service their customers faster; in turn servicing more costumers, thus increasing their profit margins. My Blue Print will allow for the consumer to review and order food prior to entering the establishment.
    Implementing my software into your system affords another option. Integrated within this Plan is a store to home delivery system designed to do away with the inconvenience of in store shopping. All of which is designed with the consumer in mind.
    This concept has been presented to several CEOs, a major entrepreneur and an investment analyst. Their response has been overwhelmingly positive. The names of the companies cannot be divulged for reasons of confidentiality. My Blue Print Plan represents a new vision in the consumer market. I am looking for the right combination of people and companies to launch this innovative idea to the American consumer.
    I would like to meet with you as soon as possible to elaborate further on my Blue Print Plan. Should you have any questions prior to our meeting, please feel free to contact me.
    Seeking $5,000,000 for Start up , Invested $130,000 of own money

    Sincerely,
    Marcus C. Williams

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