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I used a bootstrap method:
Year 1: Built a small prototype (0 USD).
Year 2: Used this to raise some funds for a larger prototype (a few hundred USD).
Year 3: Used this to raise some funds for an even larger prototype (a few thousand USD).
Year 4: Once the prototype was convincing enough, I used it to raise enough money to build a demo (a few ten thousand USD).
Year 5: I'm currenlty building the demo that will (ideally) attract the investors to actually build the game (a few million USD).
Sounds like a 'ship burning' strategy to me, but at least you can tell somewhere halfway if you're ever going to make it. If nobody likes your idea or game or whatever concept, you'd find that out in step 3 or 4 at least. 
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who sought mob loans
I actually got a really really shady offer once, but I didn't trust them right from start and along the way I started to feel really uncomfortable with them, so in the end the project never really took off. Not sure if it were mobsters off course,
Cheers
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