I was considering the Mages Guild as the major source of funding to get the project going, I don't think it would have happened before then unless the BM's found a powerful sugardaddy.
The Elven harassment of the First Empire gave rise to an elite form of support troop for the Valley armies, the battlemage. By the time the Alessian Doctrines filtered down from the north along the river trade ways, these mages had become the ruling aristocracy. - 1st PGE
There is no such faction as "The Battle Mages", they're a class that came into existence to fight the Elves and later on turned into an aristocracy. Not much of a surprise considering the considerable amount of learning required probebly rubs off in the other aspects of live as well.
The Battlespire is an military academy, think Sandhurst or West Point and as such it is most likely funded by the Legion.