Second biggest problem for reasonably priced phones like this is to sell enough to be able to order the next batch at cheap component cost.

Which leads to the biggest problem: marketing prowess. Getting a device to Ars Tecnica [and hopefully not be hacked by them] may be achievable with some perseverance and/or attending the right events. Same with CCC in Germany, and thus Heise and Golem.

That will help convincing companies but how many devices can you subsequently send to NGOs, rights organizations and the like to incite orders until Reuters orders a batch for its correspondents in oppressive nations.

As you said, the sector has a poor biz track record so VC is highly unlikely before any larger sized org places a batch order.

The smarter roadmap may be to hire somebody with solid contacts at say Lenovo in a (semi) oppressive nation and target the “Secure Lenovo” as a merger & acquisition strategy.