Getting a Seed Round from a VC, Stocks and Bonds, Finance and Capital Markets

After reviewing his hypothetical business startup, Sal outlines the stock distribution based on the pre-money valuation and a $5 million investment from an angel donor. He reviews the fluctuating percentage of ownership once an investor is introduced, as well as the 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.