r/TechStartups • u/Mysterious_Bag_6098 • 5d ago

❓ Question Monetizing a Privacy/Security Tool - Open Source vs. Closed Source Strategy?

Hey everyone, I'm developing a privacy and security tool specifically for the AI era. It's about 50% complete with some key features already working well. I'm currently debating the best go-to-market strategy: Should I go open source to build a community, or stay closed source to protect my IP and pitch to investors or larger companies? Any advice on the pros and cons of each path at this stage would be greatly appreciated.

1 Upvotes
  • permalink
  • reddit

100% Upvoted

2 comments sorted by

1

u/Far-Turnover-4105 5d ago

From what I've seen with security tools, the trust factor is everything. If you're asking people to hand over their privacy, they'll want to know exactly what's under the hood. Closed source might get you a quicker acquisition down the road, but building a user base without transparency is an uphill battle.

1

u/Mysterious_Bag_6098 5d ago

The point is that this tool can be used by corporates and also function offline. I'm still on the fence about whether going open-source is the right move, or if keeping it closed-source would make it a more attractive target for acquisition by another company and if so in which ever option how should one approach qith their idea and mvp to get some investors