Can somebody explain me only question 3? thank you

Use the information below to answer Questions 1, 2 and 3 of this Section.

Investment required: $250,000

Equity Considered to be offered for this investment: 20%

Product: Wearable device for animals that translates noises they make into simple, English language audible demands

Idea: Innovative, Scalable, Targeted to growing segment

Target Market: General consumers

Prototype: Beta phase launched

Patents: Pending

Management Team: Experienced, Motivated

Strategic Relationships: development partnership Buffalo Bill & Precious Inc., a well established community dog training company

Product Rollout or Sales: Patent is still pending

Founders Investment to Date: $180,000

Profit: $0

Revenue: $50,000

Management (Option Pool): $0

Industry (Price/Sales) Ratio: 7.5X

Estimated Average Value of Successful Startups in the region: $1,300,000

Expected Sale Price on Exit: $21,000,000

Investors Required ROI: 10X

1. Determine the Pre-Money Value of Millie Tech Ltd. using 3 or more valuation methods?

2. You are the CFO of Millie Tech Ltd. outline a capital raising strategy from 3 different sources describing how and why each one is applicable to this specific company.

3. Describe 3 different Financial Instruments as they pertain to this specific investment opportunity, outlining the advantages and disadvantages of each from the perspective of a VC investor.

4. A prominent investor provided feedback stating that the company is too early. What next milestones can the company achieve in order to still add value and grow despite not receiving the full amount of capital it was seeking at this round?