20,000.

Five million dollars.

We know that it is a large city, but we may be unsure about exactly how many people live in the city.

Now we're in the 1,000,000's place.

So let's think about it a couple ways.

Lost 5 million.

So let's say we say need 5 million from the angel investor to get started.

We'll have 5 million in cash.

That's not a trick question.

The whole point of this was to start a business.

He had originally given us 5 million.

And then all you have left is 5 million for this guy.

So the shareholders' equity, or you could almost say the book value of the equity of the company, is 5 million. 5 million equity.

But then comes the ask, where you tell me how much you want.

I think this company is actually only worth 5 million.

All right, you get your 5 million.

And there's 1 million shares.

Let me make the pointer smaller.

I had some debt.

Let's just say it's all of it.

That's worth 5 million, right?

Wait a minute! Five million yen!

17½... minus the half for wasting my time.

And we're valuing it at six million because I have a million here and five million here times six million.

And that's why scale counts.

He valued what we already had at 5 million dollars.

They're worth 5 million.

So this is interesting.

20,000. That's a little steep.

We got 10, 20, 30 44, five each.

Well, it's the debt holders get first dibs.

In the year 2000, a rather interesting thing happened.

We didn't pay down any of the principal of the debt.

We went to an angel investor.

Undo.

I don't know, depending on how many expenses we have.

That's the idea.

Maybe if you had a chimpanzee with you.

I have 1 10 of ten million as opposed to 1 5 of five million.

And so this leads to a process of valuation.

So if this idea we agree with the angel investor if we agree this is worth 5 million.

What is the total value of all of the assets now?

So my 200,000 shares are worth 200,000 according to his valuation.

So he says that what we have right now, our idea is only worth a million dollars.

But what about the Democratic Republic of Congo?