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

Company name: Millie Tech Ltd.

• 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
• Founder’s 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
• Investor’s Required ROI: 10X