I never heard of it again. I like the idea, but it might not be the easiest to get off the ground. Why not just use Kickstarter? (Except that they're doing union busting, I know).
In my view this is a natural next step for open source as it closes the loop on users who don't contribute code but do use the software. Now they can contribute financially, in theory fueling more code contributors (in practice, most bounties I've seen are not worth the work, but I've only had my eye on one obscure little open source game, so this may not be representative).
I think Kickstarter is not great for this model simply because it has a fixed end date for fundraising and there is less of a direct tie to specific features in a particular codebase.
Check out our early Initiatives page and you'll find two early projects we are currently working with to get funding.
Thanks for your awesome comment!
While KickStarter might be useful to get funding for an open source project, we are aiming to become THE platform for open source innovation. OpenTeams is a marketplace that connects open source stakeholders with organizations to facilitate funding for new development and maintenance.
Unlike KickStarter which only provides funding, we're enabling project leaders, contributors working on the funded project, funders themselves, and OpenPartners (middlemen 'general contractors) to collaborate and get the work done in the best way possible.
Thanks for the feedback! We really appreciate it.