The lack of funding reflects the lack of interest. For-profit investors don't see the business opportunity and governments don't see the need. There are other uses for the money, and the people with money don't want better rockets that much. Rockets are not particularly expensive, but they are also not particularly relevant.
> lack of funding reflects the lack of interest. For-profit investors don't see the business opportunity
Not true. Launch and propulsion are amply funded. (If you have a good idea in the space, and capacity to execute, I’d love to connect.)
> Rockets are not particularly expensive, but they are also not particularly relevant
Hell of a lot more to launch than just rockets. And there is demand, today, for non-SpaceX launch providers.
Plenty of capital stands ready for this sector. And hundreds of millions are deployed every quarter. (Yes, private capital, occasionally in the billions.) SpaceX crowds out the market, yes, but Arianespace suffocates it by providing the same crowding effect with none of the utility in pay-off. And part of SpaceX’s wake comes in the form of commodification, particularly at the low-mass end. (To be clear, I think smalsat launch is overblown.)
IMO, a big problem is that SpaceX makes it difficult to enter the market. They keep their prices very low, and have an amazing reliability record. Which makes it tough to close a business case around medium/heavy lift rockets. Especially taking into account development risk.
And it's not any easier trying to make a small-lift rocket. They suck the volume out of that market with their Transporter and Bandwagon launches.
