Quote from: Elwar on June 01, 2013, 12:51:26 AM

Quote from: alyssa85 on June 01, 2013, 12:15:24 AM

OP's other alternative is raising money from the traditional banks - can you imagine how that conversation will go?

CtrlAltBernanke420: Hi, I need half a million dollars to start an organic farm so I can sell food to people.
Bank: Ok, what is your business plan? What will you use as collateral? What is your farming experience? How many other successful businesses do you have? Would you be willing to put down 20% ($100,000) toward the loan? Let me check your credit score and credit history. What is your current salary? Can you show proof of past history that would justify the returns you expect to be able to pay back $500,000?

or...

CtrlAltBernanke420: Hi, I need 3850 bitcoins to start an organic farm so I can sell food to people in exchange for bitcoins!
Bitcoin investor: Ok, what is your business plan? What will you use as collateral? What is your farming experience? How many other successful businesses do you have? Would you be willing to put down 20% (770BTC) toward the loan? Let me check your credit score and credit history. What is your current salary? Can you show proof of past history that would justify the returns you expect to be able to pay back 3850 bitcoins?
CtrlAltBernanke420: I will pay you $6/BTC for 3850 bitcoins.

I am not sure VC are always looking for a return for every dollar spent on a specific task. IE, no one makes money from marketing, no consumers pay to see advertisments. But, they are worth the dolling out, to get the return on the underlying product they are selling.

I do not plan to actually pay back 3850 BTC. But I do intend on making whatever bitcoins you have left, to be worth much more, because they are redeemable for food. A staple in human life. The beauty, again of bitcoins, is the wealth they hold, is physically intangible.