It seems to me that these entrepreneurs are only focused on a very small part of what is killing technology start ups. I do not see how this solves the following problems:

1) Lack of adequate protection for one’s inventions. Patents are national and being in a no-man’s land just allows everyone to steal your inventions or at best forces you into the same problems or more.
2) Raising capital. SOX is still going to apply to any company or investor that is raising capital in the US or related jurisdictions.
3) Taxes: US citizens are taxed on their world wide income, so it does not eliminate the stupidity of US tax compliance or the issue of tax theft for US citizens.
4) Banking: US law is reaching into every bank in the world (FACTA) to ensure its outrageous tax and regulatory compliance

Only if this “island” truly declares itself a sovereign nation, setups IP protections and tells the US government to take a hike on Taxes and SOX will this succeed.
OH, and by the way-this is for NON-US citizens. Don't get your hopes up, US engineers. DO NOT PASS GO. You helped sow the seeds, but you ain't reaping the crop, even IFyou are clever like this-

Great concept but I agree with other comments regarding the flaws. Good start and I applaud anyone thinking outside of the box in the real estate sector these days. Maybe they can refine the idea.

I do like how they correctly identified that there are "government regulations standing in the way of technological progress." Good to hear this verbalized from the ultra liberal Silicon Valley/SF area