Earlier quoted context omitted.
Depends on your growth strategy. If you're prepared to start lean and can demonstrate early signs of revenue then I'd imagine you'd find banks willing to cut a business loan.
You can't build a product company like this. Products require lots of development before any revenue arrives. Underdeveloped capital markets (VCs, stock exchanges etc.) is why Europe's software industry is mostly services. The difference between SV and anywhere else is access to risk-tolerant money. SV is not primarily an IT cluster, it's a VC cluster.
Sure you can, you just bootstrap through monetising the ground work. For example, if you want a product company you can start out as a freelance design agency. The bulk of the initial design work will be for clients, but you can be involved with low volume manufacturing on the side. As the company grows, not only do you have the funds to take on progressively more ambitious product manufacturing projects, you've also built up a team of designers that can help push these projects forward. You're going to need designers right? Why not get them making you money from day one.
To give an alternative example, let's say you want to manufacture mobile phones. A good way to start small would be to manufacture accessories for existing phones. This is within the grasp of anyone within the Western world, given enough drive to do it. The revenue and knowledge you can gain doing so allows for increasingly sophisticated accessories to be built until the point where you have your own manufacturing premises (or have access to one at low rates, due to the volume of products you're pushing). The step from this point to manufacturing mobile phones is not that great.
Does this require more patience than burning through VC money? Sure, but it's also lower risk. Building a company gradually from the ground up means you get a better sense of what it takes to run a successful business (or in other words, experience is the best teacher).