Banks lend most money to real estate, not innovative companies.
Once the building is showing cash flows with 1-2 years of tax
returns, it becomes "bankable" to major banks. When real estate is
bankable it can be leveraged and an "exit" strategy created for
investors either from backing out money with loans or selling to
investors.
Innovative businesses cannot be leverage well and require equity
financing. Debt financing, especially against income producing real
estate, is the lowest cost financing.
Equity financing is VERY expensive if the product is truly valuable.
Equity financing for Solar Motor Works would be extremely costly by
1000-10,000 times due to the upside potential of the technology.
