They have no toxic debt and there are several ways they could be funding the start-up (some of this is pure speculation):
1.) They could be buying back stock at very low prices which they can do with at least 2 multi-millionaires on their team.
2.) The CEO has mentioned friends and family will help fund. This seems very vague, but they've proven so far that they have some pretty dependable "friends" (Darryl Green and Louden Owen). In turn, I'm sure those two businessmen have many connections of their own to get in touch with as well.
3.) We know they have some contracts in the works. Perhaps these contracts include up-front payments due at signing?
Again, these are just my theories. Please someone else chime in to agree or disagree.