Less than a year old, Cambrian House is leading the way in a new Web trend called crowdsourcing
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It's still less than a year old, but global trend watchers are already calling a local website firm a company to watch in 2007. As Byron Chu explains, Cambrian House (
www.cambrianhouse.com) is building its business with your ideas.
"Nothing will grow you guys as much as reading and talking about what you read," Cambrian House founder Michael Sikorsky told a group of 10 new employees at an orientation meeting on the first work day of the new year. Sikorsky isn't new to the Web industry. The long-time software programmer started out creating programs on his Commodore Amiga when he was just 12-years-old. He went on to start a successful software firm, which he sold at the peak of the last Internet boom.
"I actually had the idea for Cambrian House earlier, but I didn't do it earlier, because I just thought it was too nutty," said Sikorsky while reflecting on his new Internet firm.
So nutty, that when he approached investors with his idea, he had no product, no customers, and no staff.
"When we were raising financing, we literally broke every rule there is about whether your business is fundable or not."
What he did have was a groundbreaking vision called "crowdsourcing". Sikorsky would ask people on the Net for their ideas to build successful online businesses.
"We tap the crowd for ideas. The crowd votes on each other's idea, so the wisdom of crowds highlights the best, and then Cambrian House will market test it. And then once it's live, crowds will help build it collectively, for royalty points," said communications manager Jasmine Antonick.
If it sounds a bit like American Idol, that's because, it is. Cambrian House depends on the input of everyone on the Web. Sikorsky's vision, and his track record as a software programmer, has convinced investors to come forward with $7 million in financing so far.
"Really, while launching our website, we had community members rolling in. Why? Because this video on YouTube of course, of us at Google, unannounced, shocked everyone," said Antonick, referring to a stunt last year where Cambrian House arrived at the offices of the successful Internet firm in Silicon Valley, with a thousand pizzas to feed Google's staff. The idea was to pay homage to the success of one of the first Internet startups, while promoting Cambrian House's own launch. The video was posted on YouTube - and received more than 600,000 hits.
Cambrian House now has 9,000 members around the world, and that's why it has expanded its staff to 50 people, working on the thousands of ideas pouring in. Three of those ideas have already become reality, such as www.prezzle.com, where you can send an online present with a gift card inside.
And then there's www.robinhoodfund.com.
"A bunch of people get together, and put in a little bit of money into a pot, and they each make a wish, and then people go ahead and vote on whose wish should be granted," said Robin Hood Fund manager Jim McDonald.
"There's one where a guy is asking for 12 hookers, to have a night with 12 hookers, which is really funny."
And there are also more touching stories, like a mother in the U.S. who couldn't give her two kids a real Christmas because her money was spent on chemotherapy for her four-year-old.
"I get to be the person who gives her 250 bucks, and helps get her through the Christmas, and then I get to follow up and talk to her about this story, and how that money helped her," said McDonald, a computer programmer who has never done anything like this before. "It's extraordinary for me."
Contributors to the Robin Hood Fund can vote to grant a naughty wish and a nice wish, so there's room for wishes of any kind. Nearly $8,000 has been granted so far, in the first few months of operation. On January 15th, the Robin Hood Fund will be granting $10,000 to both the best nice wish and the best naughty wish, as voted on by contributors.
Generating ideas, turning those ideas into a profit, and sharing that profit with people online: It's a business that Michael Sikorsky believes can change the world.
"I don't believe I'll ever have a better idea than Cambrian House, because it's the exact thing I want," said Sikorsky.