Brothers' Micropledge offers way to chip in

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SMALL IS BEAUTIFUL: Christchurch brothers Ben, Berwyn and Bryan Holt aim to help get software projects on the road, using their new online business, Micropledge.

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Three Christchurch brothers have set up an online business, Micropledge, that lets companies pledge small amounts of money for software that they would like to see developed.

Co-founder Berwyn Hoyt says he and his brothers, who are all software developers, targeted the software industry first as it is a business they know. If the concept takes off, Micropledge's service could also be used to fund community amenities such as playgrounds, he says.

Both developers with an idea and customers with a need for a piece of software can list their ideas and requirements at www.micropledge.com. Money that is pledged is held in trust till the software is developed.

People who had pledged money would then be able to vote on whether the software met their requirements and whether payment should be released.

The funding model lends itself to open source software projects, but Mr Hoyt says that by publishing their wishlists, developers and customers can also prevent others from patenting their ideas.

Micropledge's website lists several projects but none that have yet attracted meaningful funding. Mr Hoyt says the challenge is to get critical mass behind some of them – customers are unlikely to pledge money unless they have an expectation that enough other backers will be found to make projects viable.

He expects that using Micropledge to let people sponsor community initiatives will be more lucrative.

The brothers have their own software development business, Brush Technology, which provides their "bread and butter" while they try to build up Micropledge.

- © Fairfax NZ News