It might very well work and there are probably a half-dozen or more other similar funding models, but you know "he" (who will not be named) will not do that. The man has already spoken about his disdain for crowd-sourcing, or anything that tries to fund a company's projects from the end-buyer. He follows some old business models that enjoy high stakes, investment, risks, gambling and the thrill of payoffs. That's how he tabulates the success of the company.
In his old-fashion model the liability remains with the company rather than the buyer (i.e. buyers putting money into a project can lose their investment if the company folds/bankrupts before producing their product). Well, that's pretty much how traditional businesses have run for centuries... millennia. It's an old model that has recently been upturned, but alternatives tend to resemble a crowd-fund profile when buyers have to "buy-in" to the project development. With him everything is played close to the chest and it looks like this Section 31 is much the same. To be honest, I don't know what the heck he's doing with Section 31, because he really hasn't said anything about it for us to understand it anyway, but you can see how he's playing this one close and personal and typically cryptic and bewildering.