In 2002, Edward Delgardo completed his plumbing apprenticeship and became a qualified plumber. He then worked as an employee of a plumbing company for six years before deciding to start his own plumbing business. He began as a sole trader, and then formed a partnership with Ronnie Tran. Later still, Edward and Ronnie converted their business into a proprietary company.  Edward is married with two children. He and his wife live in a house that Edward inherited from his deceased parents. The house is now worth $550,000.

New facts:  Edward and Ronnie have registered a proprietary company called ER Plumbing Pty Ltd, and they are successfully operating their business, making profits of about $150,000 each year. Then, after some research into a plumbing problem they have experienced from time to time, they invent and patent a new type of toilet valve. This valve electronically monitors and controls the flushing process. The new valve saves up to 25% of the water used for flushing, and on a large scale would be cheap and durable.

To develop, manufacture, market and distribute the new valve will require large sums of money but, if successful, it could replace the current technology and make big profits. Edward and Ronnie do not have access to such large funds, either in the form of savings or loans, and the business is not generating sufficient income either. The only realistic prospect is to get a large number of people to contribute new funds towards the venture.