One of the greatest things that could happen to a startup is a large company says,

Malibu Equity and Investments.

They are just going alone! (Applause)

Malibu Equity and Investments. Roger Van Zant.

It's worth 5 million.

And of course the pre money valuation is just you just take the pre money valuation plus the amount of cash they're giving us.

An investors' group is attempting a leveraged buy out of the firm.

And I get all the time entrepreneurs who are going, Yay! Look!

Before you think about how the company is paid for or how it's funded, if you just think about the enterprise itself, the assets.

That company is one of the best in the business.

It was a marriage meeting.

Whether people will continue to loan them money.

It's already immersed in social networks.

If you work for a funding agency or pharmaceutical company,

So once again we get into this what is the company worth right now?

We essentially sold them at 10 a share.

Just to simplify the explanation.

Major technological advances are needed, as well as political will and co operation, massive investment, international consensus, the retrofitting of the 45 trillion global economy, including transportation, manufacturing industries, and agricultural systems, as well as officials competent to manage the transition.

They're going to take a stake in your company and hope that your they give you enough money to kind of get your venture going.

That's simply not true.

I'm bringing 5 million cash to the table,

If what we had before is worth 5 million and there were a million shares initially, then the pre money valuation

The corporation set up a dummy company.

But what is most important here is, who do we finance?

And he puts in 400 into this corporation.

The company bought shares in the venture.

The company was absorbed into a big business.

What matters here isn't technical capital, it's social capital.

So it's a very different scenario depending on what our pre money valuation is.

Why should I know this?

He took a chance investing his money in the new company.

It lists already 1,000 entities that are offering debt and equity for social enterprise.

Japanese corporations are slashing their capital spending programs.

But then they started to grow their economy.

I'm eager to be allowed to do more private sector investment.

CA What's the bottleneck preventing this stuff getting from scale?

So the combined assets, if you believe that this is worth 5 million, is now 10 million, right?

But he said you know Nempo...

The art of reinvention. The wisdom of play.

And when nations cheat in trade, there will be unmistakable consequences. Applause

like the 4,000 community interest companies that have sprung up in the U.K. over the last five years and a similar rise in B corporations in the United States, enterprises that have ecological and social goals written into their constitution at their heart companies, in fact, like this one, Ecosia.

Small business are often absorbed by a major company.

So just to take some quick examples

We had everything.

We lost out to our rival in price competition.