Once Sal's hypothetical company has been through two series of seed investor financing, competition is driving them to raise a significantly larger chunk of cash. Learners investigate the initial public offer process, starting with a visit to an investment bank. He explains the role of the bank as well as its motivations, and outlines how a syndicate operates. Scholars differentiate private equity sales with this new IPO, and see a clear demonstration of the mechanics behind raising money this way. Finally, there is a brief comparison between trading on a public stock exchange and investing in an IPO.