This sounds similar enough to the SBIR/STTR program that many federal agencies already have from the NIH and Department of Agriculture too DARPA. Basically a company pitches an idea to a federal agency which if accepted will give you something like 100k (phase 1) to explore the initial idea and place in you in a pipeline that can lead to much more money if the idea seems valuable and doable (phase 2 and phase 3). This program has led to the development of all types of cool technology and has supported a bunch of small businesses. However it is not the silver bullet you are suggesting it is.
Primarily not a silver bullet in this case because it takes like 6 months and it’s a pretty involved submission. A VC firm just writes you a check. I have personal experience with this. The issue comes down to speed and decision making. The government can’t ever let a single person be responsible for something like this, so there is a lot of CYA.
Phase 1's are really not that hard to get, and the process is not nearly as stifling as you are alluding too. Most people without prior funding or reputation don't just get instant money from VCs. Convincing them to give you money can take a decent amount of time too. Especially if you are trying to do something actually out of the box not just something like "Its like UBER but for ..." Just speculating, but I would bet if you are a just starting out and are not well connected getting a phase 1 would be easier than getting VC funding.
Another major plus is that SBIR's don't have to be the next google. You can get funded for a product with fairly mild potential. VCs only seem to care about the 100x investment.
I can only speak from my experience, which is watching a good friend go through the process. It's been very lengthy for them.
You're right that it takes time in many or most cases to get funding from a VC - but they can write a check the same day - that was my point. And there are a lot of them to go pitch your idea to as well.
Yes. Just like that. And Google and Boston Dynamics came out of it. That’s amazing. Now what if the budget could be $30B a year, $1-3MM instead of $100K (which might have been suitable in 1997, certainly not today) and take 2 months instead of a year (or whatever it takes)? :)
You don’t need $1m to see if an idea is feasible. Budget isn’t the issue for those programs, it’s getting enough applicants with ideas that are even reasonable in the first place.
Oh yes, you do, in the current envoirement. You compete for the same attention from retail consumers and enterprises. The price to reach said consumer gets ever higher + the usual monetary inflation. That's why every company is raising $1MM+ in seed nowdays while decent ones are raising $3MM+.
Also, most of the times far fetched things require a lot of time and money by it's own virtue because they're hardware and require long basic research. See for example as of recently: BOOM.
We're not talking about seeing if there's demand for a piece of software.
> Oh yes, you do, in the current envoirement. You compete for the same attention from retail consumers and enterprises. The price to reach said consumer gets ever higher + the usual monetary inflation. That's why every company is raising $1MM+ in seed nowdays while decent ones are raising $3MM+.
Why do you have to reach consumers at the ideation stage if
> We're not talking about seeing if there's demand for a piece of software.
