Personally, I don't see why it can't all be funded via the Steem from the upvotes that happen before the 15min. mark.

& then this Steem can be for example, staked and upon which an SMT can be issued for business needs. Such as the proposed SPS and even the 'Foundation'.

Just thinking out aloud.

Again, you have done a great job of telling it as you see it, don't see the need for me to write a post when a comment/suggestion here can clearly state what I think.

Cheers.

PS. As you know, I am fully against "handing out money/delegations".

While a co-funding system with an SMT being the core of it, i.e.:
You invest a % into the SMT with your Steem and you will get a certain amount of the SMT based on your investment + a delegation from the SPS (based upon the amount you invested).

I don't see that going wrong. No free lunch out there, the "free lunch" way of running a business has proven to be an utter flop!