[bluGill]

It is a little more complex. The small company realizing money will run out will start to look at options. The obvious option is cut back requirements/scope until they can get something - anything - on the market to bring in money. If they can slow the rate of losses they might be able to finish eventually. The other option is to show their investors current progress and ask for more money - this is a hard sell but it sometimes works.

In government the first is not allowed - the contract is specified. However you can ask for more and if you have made progress they will sometimes grant you "that little bit more" - remember ultimately they want what you are under contract to make and if you fail they have to start over again with someone else.