Proton Foundation: Transitioning to a Nonprofit Model

Sydney Times

— 2 min read
Proton Foundation: Transitioning to a Nonprofit Model

Introduction

Proton, the Swiss company known for its privacy-focused apps like ProtonMail, is undergoing a major transition to a new nonprofit foundation model. This move aims to ensure the organization's self-sustainability without relying on donations or commercial partnerships.

The Proton Foundation

  • The newly established Proton Foundation will become the main shareholder of Proton AG, the existing for-profit company.
  • The foundation will allow Proton to maintain profitability while upholding its core mission of privacy protection.
  • This change in governance does not alter how Proton's core businesses are operated, emphasizing the importance of independence and sustainability.

Motivation Behind the Transition

  • Unlike other privacy-focused entities that rely on external funding, Proton aims to maintain a profitable business model.
  • The foundation will enable Proton to offer stock options to attract top talent in the tech industry.
  • Proton can still consider going public in the future while upholding its commitment to privacy and independence.

Impact on Privacy Initiatives

  • Proton's transition reflects the challenges of building a privacy-focused business in a profit-driven world.
  • The foundation will ensure that Proton's financial success is dedicated to the public good, preserving its values and culture of innovation.

Financial Commitment

  • The Proton Foundation plans to allocate 1% of Proton's revenues to charitable activities supporting other privacy-focused products and initiatives.
  • The foundation's control mechanism will safeguard Proton from compromises that could jeopardize its core mission.

Background on Proton

  • Founded in Geneva in 2014, Proton is known for its encrypted email service, ProtonMail, and has expanded into various privacy-focused products.
  • Proton initially relied on crowdfunding campaigns and later received investments from venture capital firms before transitioning to a nonprofit foundation model.

Foundation Leadership

  • The Proton Foundation's board of trustees includes key figures like Sir Tim Berners-Lee, Carissa Veliz, and Antonio Gambardella.
  • As the primary shareholder, the foundation has significant decision-making power to protect Proton's founding mission.

Conclusion

  • By transitioning to a nonprofit foundation model, Proton aims to balance profitability with its commitment to privacy and independence.
  • The foundation's establishment signifies a unique approach to sustaining a privacy-focused business while upholding core values and fostering innovation.

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