Congratulations! You’ve decided to start your own business and open a pie shop, called “Apple of My Pie”. You want to feature homemade pies using fresh ingredients and instill a sense of nostalgia in customers. You also want to keep your small business feel in everything you do, encouraging customers to support local efforts. Your mission statement reads "Enriching the lives of our customers by reminding them of childhood and family memories, or simply the pleasure of good taste through fresh, local ingredients."  You feel there is definitely room in the market place for your business and that you would bring a unique offering to the industry. You have decided to sell whole pies, mini pies, and pies by the slice. Although you have saved a considerable amount for start up costs, you require additional capital. Your first step is to get funding for your business and you have two options, a venture capitalist or an angel group.

The venture capitalist firm, made up of 50 individual investors, will give you $100,000. They have 25 years of experience in the restaurant/retail space.The firm is willing to forgo any first year profit to be used for reinvestment within the business; going forward they require a percentage of ROE. Additionally in the event of a merger the firm will get at least 1.5x the investment back before anyone else. Finally, the firm will be hands off during day-to-day operations, but available for consultations on larger business decisions. 

The angel group, made up of 3 people, will also give you $100,000. They have 20 years of experience in the technology field, and have recently branched into the restaurant/retail business. They are also willing to forgo any first year profit to be used for reinvestment within the business; going forward they require they same percentage of ROE as the VC. They want to be more heavily involved in the day-to-day operations/decisions.