[direwolf20]

I met several people self–hosting LLMs including a man from Tenstorrent demonstrating their accelerator card.

> What I noticed is that they are usually funded by public grants rather than VCs. I am not sure why this is the case.

American VC culture derives from America's privileged position in the global financial system. It can't be replicated by a country that doesn't have a ton of money floating around looking for investments.

Second reason: nobody likes what American VC culture created, so they don't want it to be replicated. Government grant funding can make decisions on axes other than profitability.

[menaerus]

Public grants are nice but they have couple of shortcomings and which is why they can get you only that far. They are normally low in capital, the execution is really slow (couple of months to one year), and larger grants too involve politics. The process is too formal (inflexible and too time-consuming) and also quite discriminating to individuals/small-groups who do have the big ideas but are not running the business already (I mean how can they). Proposal evaluation also has its own shortcomings - there's very little incentive for the actual experts to join the evaluation process (it's paid pennies) and generally speaking this leads to another chicken&egg problem - you're presenting something novel to the pool of people who might not have the capacity to understand the idea - neither the vision nor execution.

That said, I am not attracted to the VC culture but their process delivers the value which creates successful companies.

[direwolf20]

NLNET is always coming up at FOSDEM. Since they have a decent track record of issuing grants, the EU delegates them some money to use in their own less bureaucratic granting process. They call this "cascade funding". NLNET has funded a lot of random individual projects you can find on their website. Nominally, your proposal must have something to do with their goals.

This year there is more emphasis on bringing complete solutions to market. Previously they were funding much more experimentation.

[menaerus]

> This year there is more emphasis on bringing complete solutions to market. Previously they were funding much more experimentation.

That's the step in the right direction however there's what I believe is a major issue with the NLNET scheme - there is no fastrack possibility for really great ideas with very potent market impact - you have to spend (lose) ~year to prove your idea is worthy by applying to Zero Commons or similar grant instead of just getting the 200-500k to really get the project hitting the ground.

One year is exceptionally long period in tech, and if the idea is right, you need to have all the resources to execute it - working solely on the project for the whole year for 50,000 EUR is simply not the strategy that can work out in a highly competitive (world) space.

[direwolf20]

How should they know your project is worth investing 500k? I heard they've got 3x8M, per year I presume, so 500k is a huge chunk of that. Everyone thinks their project is worth 500k, what makes yours different from the rest?

[fvdessen]

> How should they know your project is worth investing 500k? I heard they've got 3x8M, per year I presume, so 500k is a huge chunk of that. Everyone thinks their project is worth 500k, what makes yours different from the rest?

Well that's the job of VCs, that's what they're expert at.

There's also another model where established industrial communities set up research centers to fund projects that might help their common problems.

[menaerus]

Yes, many might believe that their project is worth more than it really is but in my proposition authors of the idea are not the ones who get to decide that but people from NLNET or whatever grant. What I am saying is that currently there is no such process at all and this is a foundational problem with the way how these grants are working.

[direwolf20]

Another question is what you need 500k for, for an unproven project?