They're valuing these assets at 1 million.

As investors flee

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

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

Big investors.

This is the total actual value.

Just Manic Enough.

And we start getting to the negotiation.

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

He valued what we already had at 5 million dollars.

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

So let's say I have investor A.

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.

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

There you go.

And so, we ended up with a 50 50 split of the company.

But now we actually built something.

They write these research reports because they want to go to institutional investors or people who have their brokerage accounts with these banks, and essentially sell them stock.

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

I'm legitimate.

But the total perceived value, let me write that down another

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.

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.

And they have an auction.

So then they funneled even more money.

That they're reducing volatility.

And that worked out pretty well.

So what is this whole thing worth right now?

You're trading in the secondary market you're not dealing with the actual corporation so that's where the investor get's their liquidity and when we say liquidity it allows them to convert it into cash because they can trade it

So this is the investors.

He had originally given us 5 million.

They are just going alone! (Applause)

What's it like being an investment banker?

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.

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

Someday, you maybe pitching to a really young VC.

The amount of money you get.

And of course the investors would care that the money that they're essentially giving because they're giving money to the investment bankers who are giving money to

CA And now you're a big investor in that and bringing that to market?

And then, let's say, we have several time periods.