Reply To: Set up a holding company

[Brian H]

Tulse wrote:
I don’t know the history of the other X-Prize contests in this regard — was that the case there? For the Ansari version, it seemed like there were a huge number of entrants that were paper-only enterprises, and never really had the funding to bend metal. The major contestants were funded by deep pockets entrepreneurs who were already space enthusiasts, so it’s not like there was typical VC money involved. Things may have been different for the auto prize, however — does anyone know?

I think prizes are an excellent motivator, but I question whether they really get investors stoked, as the prizes are by definition for very high risk enterprises, and even if won the monetary value rarely (if ever) covers the actual invested capital. They are great publicity, but I have doubts about their effectiveness for fundraising.

Typical VC money is not the issue; that’s a very iffy source, anyway. The focus of most Vulture Venturists is the quick flip once a company or project has reached some nominal level of “success” — and they cut off and dump 10+ for every one that makes it. There are now at least 4 or 5 viable metal (and composite) cutting firms in play in the orbital game. They did indeed have wealthy enthusiast backing, generally. But that’s just fine.

The ones that were paper-only didn’t cost the prize-offerers or the gubmint anything.