However, if you are able to land a contract or two, you have a lot of money pouring in. Maybe enough to the point where you don't need any further outside fundi

However, if you are able to land a contract or two, you have a lot of money pouring in. Maybe enough to the point where you don't need any further outside funding, or a reduced amount of outside funding. And since the contracts are for 2+ years and you have to really screw up to have it canceled, then you have guaranteed income for years. You can't run it like a consumer startup.