Merit Systems Raises $10 Million in Seed Funding

Merit Systems, a startup focused on transforming open-source software economics, has raised $10 million in a seed funding round co-led by Andreessen Horowitz’s crypto fund and Blockchain Capital.

Attributing Contributions in Open-Source Projects

Merit is working on an attribution protocol aimed at tracking contributions to open-source projects and rewarding contributors proportional to the value they create.

The founders assert that this protocol will foster a more sustainable economic model for open-source initiatives, shifting from a reliance on volunteer efforts or corporate funding that often influences project direction.

> “Merit adds rich attribution information to software version control systems like GitHub. It allows capital sources to route funds to codebases and incentivize builders directly,” the project shared in a note with The Block.

Experienced Founding Team

The founding team includes Ryan Sproule, Sam Ragsdale, and Mason Hall, who have extensive backgrounds in technology and cryptocurrency. Sproule has experience at Blockchain Capital, while Hall and Ragsdale have worked with Andreessen Horowitz’s investment teams.

The funding announcement also mentioned a post-funding valuation of $55.5 million.