Serious Euro-funding: Euro-zone is as strapped for cash as anyone else, yet this money *made it through* the committees...
Now that's serious !!
Um, did you check out the web-site links ? Looks like they've solved the implausibly-efficient heat exchanger, amongst other issues and, incidentally, reckon they can squeeze 3~~5% more from a rocket nozzle.
NASA spent billions, flew stuff strapped to an SR71, yet never got this close.
;-( Um, NASA also broke their sub-scale VTOL rocket after a couple of flawless test-flights, then wrote off the entire concept. And let's not mention foam insulation or O-rings... )
Where did Reaction Engines get their money ? IIRC, they've had a few small grants, and a lot of the early work was done as student projects. Then, a Euro consortium figured that any engine intended to fly to orbit would carry a Concorde#2 to the Antipodes in a couple of hours. They put in money for a cut-down, non-rocket design.
Besides, us Brits have a history of building wondrous stuff on a shoe-string. Snag comes when the project really, really needs a tranche of serious money to go 'live'. That's when our sponsors get cold feet. UK.Gov has a grim track-record of spending vast sums on blatant lemons while starving anything worth-while, then pulling the plug on winners at last moment. IIRC, Beagle2 was most recent example. The investigation cost more than getting it right...