Nupedia launched in March 2000 by Jimmy Wales and Larry Sanger. ... Wales's company Bomis, an Internet search portal and a vendor of online 'erotic images' (featuring the Bomis Babe Report), picked up the tab initially.
The company behind Nupedia, Bomis, Inc., has a great deal of experience designing and promoting high-traffic websites. We intend to put that experience (and the profit from that!) behind the Nupedia project to ensure it is a success.
Using the Bomis site, Wales and Larry Sanger then launched their first online encyclopedia, Nupedia.
Although Wales himself had made his personal fortune as a futures trader in Chicago in the 1990s, he wasn't the one funding Nupedia. This was done through one of Wales's less altruistic ventures, a Web portal called Bomis.com that featured, among other items, soft-core pornography.
Using some of the profits from an adult content site that he had helped start (Bomis), Wales launched Nupedia.