Startups • May 23, 2019, 4:03PM EDT

GitHub launches crowdfunding tool to support open-source developers

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The Block

GitHub, the code hosting service, is launching a crowdfunding tool to provide financial support to open-source developers, the company announced Thursday.

Users have the option to choose from multiple sponsorship tiers to support developers on GitHub. GitHub developers sponsored by users receive a recurring monthly payment. During the first year of a developer's participation, GitHub will match contributions up to $5,000 and cover payment processing costs. Unlike other crowdfunding tools like Patreon, GitHub will charge zero fees to use its funding tool, which is aptly named Sponsor.

GitHub was acquired by Microsoft in 2018 for $7.5 billion. The company previously raised $350 million from investors including Sequoia Capital, Andreessen Horowitz, and Thrive Capital.