Help young economists understand the concept of a company's increasing value despite a lack of profit. They explore Sal's case study startup company, which needs to raise more money after going through the original angel investment. For the Series A Financing with the first seed venture capitalist, Sal explains the pre-money valuation, price per share adjustment, post-money valuation, and the role of the board of directors in this process. To further solidify this concept, he repeats the process after more cash burn and, in the second round of valuation, explains up rounds and down rounds. He ends by outlining the Series B financing.