The story about pawning the royal jewelery is a fairy tale. Isabella of Castile and Aragon was more than just the spouse of the King, she was a co-regent, having brought her own kingdom into the union. Ferdinand and Isabella established a commission to review Columbus' proposals. At the time (1486-1492), F&I were focused on removing the Moors from the Iberian Peninsula.
Columbus made exorbitant demands of the rulers and they basically told him to "get lost." However, Royal advisors convinced the rulers that there was a strong profit motive to establish trade routes to the "Indies". Columbus was recalled and he was knighted, given an admiralty, made a hereditary viceroy. Columbus has also acquired a well-connect partner, Martin Alanzo Pinzon. The first Columbus expedition was both privately and publically funded, and for Spain, resulted in a position as one of the world's great powers.
Take the Hubble vs the Keck. The Keck observatory is turning out results at least as good as the Hubble, and at less than 2% of the Hubble cost (Privately funded too). Remember the screw up in the Hubble optics (taxpayer funded?)