[jk4930]

I work with PTScientists.com/ (a GLXP team until end of 2016). You keep launch costs low by ride-sharing (secondary payload). One revenue source is to sell payload space to third parties (what we did). Additional funding can come from sponsors (in our case Audi and Vodafone).

The intention of the prize is not to cover the costs but to kickstart an ambitious private space movement. One needs to be very lean, inventive, and somewhat risk-taking under those conditions. It forces one to think of business models that make the whole thing independent from a possible prize money (and government funding, which under GLXP rules is limited to 10%).