I think you'll find commercial education products are generally funded through "public" money too - who do you think the buyers are? The difference is that open source products by definition are Free, and thus less likely to go under than a commercially restricted software, since anyone can take up the project and continue it. The Open Source course may be interesting for you.
Moodle development is funded by a wide variety of sources, such as (completely optional) Moodle.com services (to a wide variety of clients) as well as donations of time and money from around the globe. Many of the contributions are from people who recognise the value in the whole project and wish to help push it along. The amounts involved are quite small in commercial terms (thousands not millions) but this is improving.
I know nothing about Teknical and do not want the Moodle community to be seen as bashing ANY other products in this field. There is certainly plenty of room in this world for choices and alternatives, yes?
Comparisons and advocacy
Teknical Vs Moodle
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