I think you misunderstand what Germany's Sovereign Tech Fund is trying to do. They take no stake in Igalia, which also isn't a German company, so best case the tax money goes to Spain.

They are trying to build digital sovereignty through open source software. Thinking about the commission from the Sovereign Tech Fund as a VC investment is a bit of a misunderstanding. You're right that VC is all but dead, due to AI, so this is exactly why we need some one thinking about the future or our joint digital infrastructure, rather than profit, to invest in projects like Servo.