Pilot Model
Peter,
We are now ready to do that. Historically, OSE was focused on development, now we're ready for pilots, and that was the nature of my first trip to Haiti this weekend. I established ties with a wide stakeholdership that appears to meet the requirements for a locally-driven pilot project including local fabrication of the machines themselves.
Regarding financing, the basic model that appears to make sense after my experience here in Haiti is:
1. Fund open source technology transfer process up to local fabrication via local foundations, US foundations, or other forms of nonprofit sector activity. We develop tech transfer protocol and support. 2. Local stakeholdership is motivated by clear return on investment. Meeting of real needs or community economic development is the motivator. 3. Local stakeholders contribute back to the OS tech transfer process by knowledge capture including adapted equipment designs, open enterprise model, and complexity mapping. 4. Successful effort as such (marked by, for example, Haiti becoming a leading producer and development center of open source brick presses or tractors) means potential of wide replicability, because our main product is the OS Tech Transfer Protocol/Process with all supporting informations (designs, open business model, etc).
To take it to large scale, i would see something like this:
- Finance an open source tech transfer protocol up to local production.
- Successful pilot project.
- Viral replication.
The devil's in the details. These include gathering a team of stakeholders embodying the correct incentives for distributive, open source economic development. I would see that this is the key, as if the effort is self-funded, this gives lots of leeway.
The main platform here is in generating local production from open source designs, which becomes part of a global collaborative.
Root capital - I see it's a social investment fund. My question would be if the funder is the beneficiary, ie, direct stakeholder, otherwise I see non-optimal incentivization for success. We need to structure the process that the local stakeholders, not outsiders, are funding the project, so they have skin in the game, and no debts to pay off. I think we should stick to the usufruct investment model (the investor is the user or direct stakeholder), whatever the correct terminology is - where we have no investment from outside the community unless there are no strings attached.
Those are my thoughts. I think the best way to make this scalable, perhaps the only way, is to build from within the target community, show a success case, and let the results speak for themselves. Then we function primarily as an open source tech transfer organization.
From Peter
Great to hear from you. Meant that as a question for the panel but glad to continue the dialog via skype. I'm skeptical of high cost open source technology getting virally replicated in emerging markets by distributed actors. We've had trouble with that with small things like Ram Pumps, Bucket Generators, and Hydro load controllers, not costing more than a couple hundred bucks. The idea that it will happen for a tractor or a several thousand dollar compressed brick maker just has me a little concerned. I'd recommend going more commercial with it but keeping your designs open source. My two cents.
Just to clarify a bit about what Root Capital does they provide debt to larger farming cooperatives who use those funds to make infrastructure improvements. They might be able to help people afford that few thousand dollar tractor. I get you want to avoid debt but Root capital has a good payback history and reputation for being flexible with loans. Anyhow they are a large player in Haitian agriculture and worth checking out. I can make an introduction when you are in production.
In terms of funding your manufacturing and getting you into production. You're going to have a tough road on the philanthropic funding with all the competing priorities in Haiti. But if you want I can make an intro to the Lemelson Foundation and see if the bite they are up your alley in appropriate technology, though are not big on open source, they got all their money from a prolific inventor and patents.
If you are going a for profit model there is not much seed investment going on in Haiti, it is more for established companies, and the local angels are sharks so be wary. We've had a seed stage manufacturer that we supported that has had a heck of a time looking for investment since 2010. The other big manufacturer we support (doing a few million in revenue) all but gave up looking for investment and focused on Government contracts. That could be a good strategy for you. There is alot of investment capital flowing into the country right now but there are a lot of government partnerships involved in that so if you can partner with the government there is the opportunity for a large deal. Worth a consideration. I can put you in touch with the folks at Enersa if you want to talk about government sales in Haiti.
Did you talk with Joel Jackson from Mobius motors at Global? More than anybody I think he'd have some great ideas for you as you move forward into commercialization.
Good luck man. I am glad to see you making this step and I am extremely glad to see it happening in Haiti.