I'm confused, you want to have people crowd fund R&D to increase the odds a product goes to market. And then expect no profit on the back of that investment? After the potentially huge initial cost does the company then sell the product at cost? Or do they make a profit now?

Can you give an example of a bailout you disagree with? Pretty much all bailouts I'm aware of recoup their costs Also the reason private equity doesn't bail out these companies is that unlike a government they may not be able to weather a significant period where they aren't getting a large cash flow, as they need to stay afloat as well. A government on the other hand is better prepared to recoup costs over time, and will do so if it means that depositors funds are safe. They are much more likely to let a hedge fund just fold as the participants are capable of withstanding such losses