England was emerging from the War of the Roses, had just lost their French territories and Henry VII was not secure. Still he paid for two trips.He sponsored Cabot and several others including Cabot’s son Sebastian. But all these were in search of a Northwest Passage. America was an obstacle to overcome. Sebastian made some discoveries but Henry’s successor, Henry VIII had little inerest in exploration.
I think Henry VII gave John Cabot 10 pounds as a reward for discovering Newfoundland (and giving England a claim to the New World). Soul of generosity, that guy.