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this post was submitted on 27 Apr 2024
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Here's where it gets rough. The biggest problem isn't "funding." It's people working solely for money and nothing else.
If you really care about X, then you should be willing to put in the work even if it doesn't give you the most money in return.
As long as, at all levels of society, people prioritize wealth over results, these problems will not get solved.
That's nice and all, but only works for people that already have money. Food isn't free. Housing isn't free. Heck, water isn't free
EDIT: want to go through the maths to extrapolate this privilege.
Let's say you need one small team to deliver a novel product, say 5 people. Let's assume they all live in Europe and just need enough to survive - say, 20,000 euros a year. A lot of ground work has been done, so it'll only take two years to go from concept to R&D to something to show a potential buyer.
So you have about 100,000 euro per year cost to just keep everyone fed, housed, and clothed not including any equipment, software, licensing etc costs. Assuming there are no costs but just keeping everyone fed and alive the co-op needs 200,000 euros in the bank or alternative funding to get the product in a sellable (note: not finished) state.
In project management in tech (my background) a good rule of thumb is staff cost = 1/3 of costs. However, let's say we're being super lean and can self-source the more expensive equipment and just have to think about licenses for core software so let's make that number 1/2 of cost.
So for the two years of operation to get the product into a position where it can be taken to potential customers, the business would need approx 400,000 euros before a product hits a shelf.
And that's why funding is a problem.