Often raising funds for a company, whether a start-up or an established business, is a major decision. From a legal perspective, consider the benefits and pitfalls in raising money through equity financing, unsecured debt financing, or secured debt financing. Finally, give a recommendation and explanation for the type of financing you would recommend in this case.

Jim and Mike's mobile app business is booming. They incorporated a company and have started to make some revenue. They are now ready to purchase an office, buy new equipment, and hire employees. However, they do not have the money to pay for these upfront. How should they raise the funds?