A friend of yours is a biotech scientist who is developing a method of cloning certain antibodies. You have estimated that if the proceeds can be patented, it would be worth $10 million per year in royalties if licensed to major firms. The cost of finishing the research is $5 million, one-half of which is for equipment and one-half scientist’s salaries. You can finance the deal yourself by bank borrowing at 15%, or, acting through a broker, find wealthy investors would put up equity. Due to risk considerations, they would probably expect 3:1 returns. Some of these investors would probably want some management control. You estimate that there is an 80% probability of success, with two years of R&D necessary before revenues would commence. What legal entity choice might be appropriate? How should it be structured? How might it evolve over time?