FAQs

How can an innovative product brought to life without venture capital?

Here are some of the approaches which can work:

1. Revenue-based financing where early adopters provide upfront payments for lifetime licenses or maintenance subscriptions

2. Time banking where skilled members contribute development hours in exchange for equity or future revenue sharing

3. Strategic partnerships with aligned organizations that provide resources, infrastructure, or distribution channels

4. Community-driven development where users participate in funding, building, and testing through cooperative structures

5. Alternative investment models like patient capital funds, cooperative investment pools, or ethical investment platforms that prioritize sustainable growth over rapid exits

SOFT organizations can build viable products by combining these approaches, focusing on gradual, sustainable growth rather than the "blitzscaling" model typical of venture-backed startups.

How initial root fund is secured

Unlike traditional technology ventures that rely on venture capital, SOFT organizations can secure initial root funding through:

1. Community investment cooperatives where members pool resources specifically for sustainable technology development

2. Mission-aligned impact investors focused on social and environmental returns alongside financial sustainability

3. Crowdfunding campaigns emphasizing the organization's commitment to sustainability and ethical technology development

4. Foundation grants for organizations addressing specific social or environmental issues through technology

5. Bootstrap funding where founding members contribute initial capital and development resources

The key is structuring funding agreements that respect the No-exit strategy while providing sufficient capital for early-stage development. Potential funders must understand that their investment supports sustainable growth rather than traditional exit-based returns.