After filing the patent application using the $130,000 raised in the initial capitalization, you are convinced that the medical device has commercial viability, but you estimate that you will need $1,300,000 in additional capital to bring the product to market. You now need to engage in manufacturing, hire sales personnel, maintaining inventory to meet orders, and hiring administrative employees to process the orders, so your working capital needs have substantially changed because you will need to manage a payroll process and incur more administrative overhead.

4.2.1 Explain how you would capitalize this phase of your new business, using at least two capital sources. Please describe the expected material terms and conditions of obtaining the capital and state why you selected each capital source.

Angel Investors -

Venture Capitalists -

4.2.2 Are there any specific actions you can take to assure compliance with securities laws and regulations?