Proton, the company known for its internet privacy services, has announced that it is in the process of becoming a non-profit organization. Since its inception, Proton has taken a different path from most tech companies, always prioritizing social impact over economic gains. This transition reinforces its commitment to privacy and freedom on the internet.
A Story of Social Commitment
Proton was born ten years ago through a crowdfunding campaign that raised over $500,000 thanks to donations from 10,000 people. Founded by CERN scientists, Proton has always been led by experts driven by social welfare rather than profit maximization.
Unlike many companies that aim to be sold and generate profits through user data exploitation, Proton has taken a harder but more ethical path. Its mission is to reform the internet to be private by default and serve the whole society, not just a few tech giants from Silicon Valley.
The Path Towards the Non-Profit Structure
To ensure that Proton remains true to its mission, its founders have established the Proton Foundation, a non-profit organization that will become the primary shareholder of the company. This measure aims to protect Proton’s mission in the long term, ensuring that it will always prioritize people over profits.
Over the last five years, Proton has demonstrated its social commitment by granting over $2.7 million in grants to support online freedom and democracy. Beneficiaries of these grants include the Tor Project, the European Digital Rights Network, and GrapheneOS. Additionally, Proton continues to develop and license widely used encryption libraries such as OpenPGPjs for free.
Benefits of the Swiss Non-Profit Structure
Adopting a non-profit structure in Switzerland provides additional security that a traditional corporation cannot offer. Swiss foundations have no shareholders, and their boards are legally bound to act in accordance with their foundational purpose. In Proton’s case, this means upholding its original mission. This structure also allows blocking hostile takeovers, ensuring that Proton remains true to its principles.
In addition to its governance role, the Proton Foundation will consolidate and expand existing grant efforts to support organizations aligned with its mission. Proton commits to allocate 1% of its net income to the foundation, whenever conditions allow, ensuring that Proton’s financial success benefits the public good.
A Unique Hybrid Model
While other non-profit organizations like the Signal Foundation or the Mozilla Foundation follow grant models, Proton will continue to operate as a for-profit corporation under the oversight of the Proton Foundation. This hybrid approach aims to maintain profitability as a central goal to ensure the company’s independence and sustainability.
The structure enables Proton to attract and motivate top tech talent by issuing stock options and, if needed, raise capital in public markets without compromising its mission. The foundation ensures that the company acts in a way that does not jeopardize Proton’s core values.
Looking Towards the Future
In the past ten years, Proton has launched five services and reached 100 million people. The team has grown from three to 500 members. However, Proton acknowledges that there is still much to be done to achieve its vision. Over the next decade, the company plans to work harder, launch products faster, and take greater risks to challenge the status quo.
The shift to a non-profit structure ensures that Proton will continue to advocate for privacy and freedom on the internet. We thank the community for its ongoing support and are excited to build a brighter and safer future together.
For more information, visit the Proton Foundation’s website: https://proton.me/foundation.