[andrewmutz]

Most business ventures have risk of failure and loss of capital. How does that work in this model?

If the capital comes from the employees, this loss would be very hard for them and probably would not appropriate for more workers.

If the capital comes from a bank, is there collateral? If so, where did the capital for that collateral come from? If not, does the bank need to lend to you at an extremely high interest rate for it to be worth the investment?

If the capital comes from investors who have an equity stake in this, how is it different than any other VC? Who keeps the profits when the business is up and running (the employees or the investors)? If the employees, why would the investors invest?