Why Is This Company a Scam?

Here’s a product from a company called Veer: the Split Belt.  Its inventor claims it has distinct advantages over conventional belts used in bicycles, motorcycles, etc., and it very well may.

Yet I see this as a scam. Why? Because no rational agent wants investors diluting his company’s value and breathing down his neck, when the product itself is already fully developed and ready to be sold into the OEM market.  If you need capital to ramp up manufacturing, just get a purchase order from a customer and take it to a bank.