And now, what percentage do each of us own?

Ancillary would be number 2 referred revenue.

So essentially, instead of Countrywide being responsible for my loan, my payments now go to these investors.

I'm bringing 5 million cash to the table,

I do, there's a particular pebble in my shoe, who represents my investors.

They're valuing these assets at 1 million.

As investors flee

And I'll show you why that matters in a second.

Big investors.

This is the total actual value.

Let me put that.

It could be a whole set of people.

Just Manic Enough.

He valued what we already had at 5 million dollars.

EBlT in this case would be the operating profit plus this investment income.

Has voice

By the way before we go forward, this is one point I want to mention.

So you can imagine, this is the actual amount of cash that

If there are investors willing to finance

And we allow entrepreneurs to share a percentage of their revenues.

Voice

On the equity side of the equation we just have four million shares.

So he'll give us another 5 million. He'll essentially get 50 of the company.

But now we actually built something.

Oh, well, they find it to be intellectual property theft.

Or are you trying to get an intuition for helping to become a better investor?

I have an interest in it.

We said before any of this stuff on the top existed, the pre money valuation of just our idea was 5 million.

(Laughter) Here's some advice from one of the largest investors in the United States.

And we start getting to the negotiation.

So this is my slice down here, 200,000.

So let's say he convinces investor B to join in.

I think it was at 7.50 a share.

And of that share, we have 2 million shares outstanding.

So let's say I have investor A.

That they're reducing volatility.

And that worked out pretty well.

Imagine it is just about election day, and I know not all countries have election days but I wish they did and I wish they were fair.

So here I was, December 7th, 2008.

Two, the scientific revolution.

He had originally given us 5 million.

They are just going alone! (Applause)

What's it like being an investment banker?

So if I don't put the 150,000 down deposit on the home, and

Someday, you maybe pitching to a really young VC.