After reviewing his hypothetical business startup, Sal outlines stock distribution based on pre-money valuation and a $5 million investment from angel donor. He goes over the fluctuating percentage of ownership once an investor is introduced and per share value. Once scholars have a vivid picture of the company's assets, they begin to understand the first steps to getting it off the ground. What happens if most of the liquid assets are gone and the idea hasn't turned a profit? Sal heads back to the venture capital world, describing the role of seed investors. He introduces this type of investing as Series A Financing, but doesn't go into detail about it just yet.