Brooklyn trio raises $10 million for startup that wants to help open-source developers get paid
Sam Ragsdale, Ryan Sproule, and Mason Hall have raised $10 million in a seed funding round co-led by Andreessen Horowitz’s crypto fund and Blockchain Capital.
Sam Ragsdale
Inside the Domino Sugar Refinery in Brooklyn, a 19th century landmark perched on the banks of the East River, three engineers have transformed 3,000 square feet of the former factory into a workshop housing their new startup, Merit Systems.
Sam Ragsdale, Ryan Sproule and Mason Hall are five months into creating Merit, which they hope will solve a longstanding challenge in software: rewarding open-source developers. On Thursday, Merit announced it’s raised $10 million in a seed funding round co-led by Andreessen Horowitz’s crypto fund and Blockchain Capital.
Sproule says Merit is trying to address the “attribution problem” in software development. In the world of open source, which underpins more than 97% of the apps consumers use on a daily basis, tech giants and independent programmers alike contribute to products that are freely available for anyone to access and improve.
“Because the price is zero, and there is no attribution to the people that created it, there is not a very sustainable set of economics to keep it alive,” said Ragsdale, Merit’s CEO, who previously spent three years at Andreessen Horowitz and before that worked as a software engineer at Google.
Substantial amounts of open-source code can be found in artificial intelligence frameworks, databases, web browsers and mobile operating systems. Some of the best known open-source projects include Android (now owned by Google), GitHub (acquired by Microsoft) and Apache Spark, data analytics technology at the heart of Databricks.
While many companies have been able to commercialize versions of open-source software or sell support and services as a way to generate revenue, there’s no consistent model for rewarding individuals or small groups of contributors who often do valuable work.
Merit Systems CTO Ryan Sproule working at the whiteboard at the company headquarters in the Domino Sugar Factory.
Sam Ragsdale
Chris Dixon, managing partner of Andreessen’s crypto fund, said that open source is “poorly funded and too reliant on altruistic contributions.”
In comments he’s posting on X, Dixon wrote that Merit “is building a protocol that properly attributes and rewards contributors proportionally to the value they create.”
Ragsdale, who worked with Dixon at the venture firm, first met Sproule as an undergraduate at Washington University in St. Louis. Sproule went on to crypto-focused firm Blockchain Capital in San Francisco, and the pair then teamed up with Hall, who was also on Andreessen’s crypto team.
The project is still in development, even as the company says it’s obtained a post-funding valuation of $55.5 million. Most of its current users are friends and acquaintances of the founders. Merit expects to roll out a broader release by the end of February after gathering and incorporating feedback from its early testers.
Sproule, Merit’s CTO and a former Amazon Web Services engineer, says the startup has the opportunity to sit “in the middle,” connecting software buyers and users with the actual creators of the technology.
“If you can solve this attribution problem, you can essentially get users to pay directly for the software people build,” he said.
Three entrepreneurs in a sugar factory
The Williamsburg community in the Brooklyn borough of New York, where the small Merit team is based, has been transformed over the past few decades from a former industrial district, first into a vibrant arts and music center and more recently into an upscale neighborhood filled with new high-rise apartment buildings and luxury shops.
But the old Domino factory, two blocks north of the Williamsburg Bridge, remains a relic of the past. The refinery was the last operating industrial facility on the waterfront before closing in 2004.
After years of neglect, the building has been reimagined as a hub for modern innovation, with panoramic views of Manhattan visible through the original brickwork. The facility opened as a modern office complex in 2023, and now offers carved-up startup space as well as full floors for bigger organizations.
Ragsdale says the building’s history is important to the startup’s story.
Merit Systems co-founders Ryan Sproule, Sam Ragsdale, and Mason Hall coding in their Brooklyn office.
Sam Ragsdale
The name Merit Systems is a “throwback to the companies of the ’60s or the ’70s, which had very industrial names that explain exactly what they do,” Ragsdale said. Merit is meant to be a straightforward description of the company’s mission.
There’s also a coveted view of Manhattan.
“You can see the skyline through the old brick in the windows,” Ragsdale said.
Inside the office, there are four desks and eight chairs. Whiteboards covered in notes and math equations fill the only corner of the office currently in use, while 3D printers from Ragsdale’s home produce prototypes, including the company’s tesseract logo.
“We’re definitely not using all 3,000 square feet,” said Ragsdale. “We’ll get there eventually.”
Merit plans to add seven new hires in the coming months and is specifically looking for people who want an in-person work culture.
“The idea flow between people when you’re sitting next to them is really important,” says Sproule. “We don’t really believe in the fully decentralized remote work model for an early-stage company.”
Tesla is throttling down Cybertruck production as it shifts workers to Model Y production because inventory of the electric pickup truck is piling up.
The automaker had planned a production capacity of 250,000 Cybertrucks per year at Gigafactory Texas, and CEO Elon Musk said he could see this being ramped up to 500,000 per year.
However, things are not going in that direction.
After having sold roughly 40,000 Cybertrucks in its first year of production (2024), Tesla is already throttling down Cybertruck production, according to documents obtained by Business Insider.
The report states that Tesla asked employees working on Cybertruck production to switch to Model Y production for “business needs”:
“As we continue to assess schedules to meet business needs, we’ll be making a change to Model Y and Cyber schedules and we want to ensure that your preferences are considered.”
The moves come as Tesla is facing mounting Cybertruck inventory and has started to directly discount them by $1,600 and even add “free supercharging for life” on some inventory:
Last month, we reported that Tesla went as far as buffing out “Foundations Series” badges on some Cybertrucks to sell them as regular cheaper ones and homologated US Cybertrucks for the Canadian market to try to move them.
With the release of its sales report for Q4 2024, Tesla showed that Cybertruck deliveries in Q4 are flat or even down compared to Q3 despite having launched cheaper versions of the vehicle during the quarter.
The move of workers from Cybertruck to Model Y also comes as Tesla is preparing to build a new version of the Model Y at Gigafactory Texas after launching it in China.
However, Tesla usually doesn’t launch a new production at the detriment of another vehicle program, but this time, it is convenient because of the Cybertruck’s demand issues.
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Genesis officially launched the updated Electrified GV70 in Korea, starting at just over $50,000. The new electric SUV now has a bigger battery for more driving range, added luxury, and even more style. Check out the new Genesis GV70 EV below.
The midsize luxury electric SUV was first launched in Korea in March 2022. Less than three years later, the GV70 EV is returning with “a more elegant and luxurious look.”
Genesis launched the new Electrified GV70 on Thursday in its home market. It improves on the current model in nearly every aspect, including added features, a new battery, and an improved exterior design.
Like the updated GV60, revealed earlier this month, the new Electrified GV70 features a redesigned front and rear end. The crest grille now includes a Gradient G-Matrix pattern, adding to its already sporty look. Genesis also added its new Micro Lens Array (MLA) tech to the signature Two Tone headlights.
The refreshed GV70 gains new 20″ matte dark gray wheels while the 19″ wheels have also been updated, “creating a strong yet sophisticated” look.
Inside, the electric SUV “has been reborn” with added luxury and space. It now features Genesis’ new 27″ connected car Integrated Cockpit (ccIC) display system and touchscreen HVAC panel.
For a more luxurious feel, Genesis added an exclusive “Milky Way Pattern Mood Lighting” and other elements, such as a crystal electronic shift dial and horn cover with its branding.
Genesis reveals new Electrified GV70 prices and specs
Powered by its fourth-gen batteries, the new Genesis Electrified GV70 now has even more driving range. With an 84 kWh battery pack, the updated model now gets up to 423 km (263 miles) range. That’s up from 400 km (249 miles) in the outgoing model with a 77.4 kWh battery.
The new Electrified GV70 can also charge faster with its increased battery capacity. With a 350 kW fast charger, it can charge up to 80% in just 19 minutes.
To improve the drive, Genesis added new Highway Body Motion Control tech to minimize the jerk when suddenly braking or accelerating. The rear suspension also features a new hydro bushing, which was previously only on the front suspension, to reduce vibration.
Like several other new Hyundai Motor Group (including Kia and Hyundai) EVs, the Electrified GV70 now includes a Virtual Gear Shift function to replicate the feeling of a gas car shifting.
Despite the updates, the new Genesis Electrified GV70 starts at just 75.2 million won, or around $51,700 in Korea, with EV tax benefits included.
In the US, the 2025 Electrified GV70 starts at $66,950 with up to 236 miles range. Although prices are not expected to change drastically, the updated 2026 model is expected to have upwards of 250 miles driving range.
2025 Genesis Electrified GV70 trim |
Starting Price | Range |
| Advanced AWD | $66,950 | 236 miles |
| Prestige AWD | $73,750 | 236 miles |
Genesis revealed the updated GV70 EV for the US at the LA Auto Show in November. It now includes an NACS port for accessing Tesla Superchargers. The vehicle will begin arriving at US dealers in the first half of 2025.
With the updated 2026 models en route, Genesis is offering up to $16,750 off the 2025 Electrified GV70 with lease bonuses. Ready to take advantage of the savings? You can use our link to find deals on the Genesis GV70 in your area today.
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Ahead of Trump’s return to the White House, Rivian (RIVN) is set to receive what’s expected to be around $6.6 billion in funding for its second EV manufacturing plant. The new facility will be home to Rivian’s more affordable midsize R2 electric SUV.
Rivian to get billions in funding for its second EV plant
As soon as Friday, the US Department of Energy (DOE) is expected to announce billions in financing for Rivian’s new EV plant in Georgia.
Although the exact amount has yet to be finalized, according to Bloomberg, it’s expected to be around $6.6 billion. In November, the Biden administration announced a conditional commitment of up to $6.57 billion to finance the development and construction of the new GA facility.
The financing is part of the DOE’s Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, which provides loans for manufacturing ATVs and related materials “that improve fuel economy” in the US.
With Trump taking office, the program will likely be challenged again. In his first term, Trump already asked Congress to remove it. The incoming administration is now looking to alter it to finance fossil fuels, which would only set the US further behind.
In November, Rivian said the loan would “provide significant funding for production of the company’s midsize platform, which underpins the R2, a midsize SUV, and R3/R3X, a midsize crossover.
Home to Rivian’s midsize R2 and R3
The EV maker explained that its upcoming R2 and R3 vehicles will be “critical drivers in the company’s long-term growth and profitability.”
Rivian plans to build the plant in two stages, each adding 200,000 units of annual production capacity. The 1,744-acre site, 40 miles east of Atlanta, consists of 44 parcels of land. Through 2030, the company is expected to create around 7,500 jobs, while another 2,000 construction jobs will be established in the region.
Rivian unveiled the midsize R2 and R3 models last March. Starting at $45,000, the R2 is nearly half the cost of an R1S and R1T.
A filing with the DOE in October revealed Rivian planned to begin operations in GA in Q3 2027, but full capacity was not expected until 2028.
According to the filing, Rivian could break ground as soon as Q2 2026 and have the first shop ready by the third quarter of next year.
The DOE said Rivian’s new plant, which will produce 400,000 EVs annually, would help reduce ” overall national emissions of air pollutants and human-caused GHGs.” Last year, Rivian produced just under 49,500 vehicles at its Normal, IL plant.
Since reporting third-quarter earnings in November, Rivian’s stock is up over 40%. However, RIVN share prices are still down around 20% over the past year and over 90% from their peak in November 2021.
Check back soon, as the announcement is expected to be finalized at any moment. We’ll keep you updated with the latest.
Source: Bloomberg, US DOE
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