Raising money for a startup | Stocks and bonds | Finance & Capital Markets | Khan Academy

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Raising money from an angel investor. Pre-money and post-money valuation. Created by Sal Khan.
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Finance and capital markets on Khan Academy: This is an old set of videos, but if you put up with Sal's messy handwriting (it has since improved) and spotty sound, there is a lot to be learned here. In particular, this tutorial walks through starting, financing and taking public a company (and even talks about what happens if it has trouble paying its debts).
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[@Lima547]

Khan Academy gives me hope for humanity!

[@jaredm1477]

Is there anything this guy doesn't know??

[@nolann2382]

for real he teaches high-level math, physics, chemistry, finance, and more how does he have time to make all these and not get confused

[@omgaddad5596]

It's so great to see people still watching his old videos :)

[@gibransaliba8801]

Khan Academy? More like Khan University. It should be an accredited university

[@jammanikan8885]

thank you for such a clear and simple explanation !

[@shannonlawsonphoto]

Great info! I would love to see a lecture on creating a business plan.

[@paulmaking1980]

This guy is really good!

[@evanstafford55]

Great video on how to raise funds, thanks!

[@its5four]

Thanks of the videos, you always clear up a lot of the blur from specific topics like this.

[@thegoodtrip1562]

thank you man !!!

[@leviprody177]

This just made me want to start selling socks online......🤑

[@gibransaliba8801]

Levi Prody you can start a Shopify store

[@nobertstanel9428]

Thanks !!!

[@siasabora]

makes a lot of sense....love it

[@AngelVisionInvestorscom]

Great video. okay thanks, that makes sense.

[@edpatino59]

Great video Sal. I am writing from México and I think I missed that class when I earned my MBA or maybe I was still in the process of learning English. (I wish you were an MD. to consult with you.) Blessings. Eduardo PS. It was so simple I understood all at once! lol. (Some one bellow wrote that you mistakenly wrote a dollar sign before the 2 million shares and that might have confused some people). Thanks again.

[@quincyjones6988]

Sal has that voice where it makes you just want to fall asleep

[@InstTaxSolutionsLLC]

I like where you show about how the company will be valued before the VC or Angel investors will invest in a company. After all, receiving an acceptable ROI is what they're looking for.

[@fundanyproject]

Great video! Is this similar to asset backed financing?

[@gayatrirawate]

thnkx for getting idea......

[@magazi21]

Thanks GOD i found this video link. Khanacademy is the future.

[@flixeris]

thanks for taking harvard right front-page.

[@vachekipu]

I enjoyed the video but it was funny when u said u were out of time.... great job

[@rajaiyer79]

How did you come up with the $5M Pre-Money valuation? Is it just an arbitrary number, or are you projecting your first year revenue x exit multiple?

[@kazimoududahmed1283]

Defination of venture capital

[@PrototypePrjs]

cool

[@thekjpacino]

How did you reach an agreement on a pre-money valuation of 5 million? is it based on future earnings or value of your assets?

[@dipankarrahuldey6249]

I think it's the value of 1million equity shares before the venture capital investment

[@sing4love4fun]

Good Q! 🤝 Listen to the explanation one more time starting at 6:30: 'We agreed with the investor that our idea is worth $5M & he agrees to invest $5M. It means Post-Money Co has $10M value... " It seems that if the co. founders find investor(s), who agrees to invest $10M than your idea is worth $10M...

[@cadenplaystheshow3351]

Why is my mom making me watch this!!!😭😭😭😭

[@KrunsTheDoctor]

well even though the company lacks material assets, the company can be valued based on potential (and potential plays into it when they DO have assets a great amount as well). So if an investor see a company and puts in 5 million after evaluating it at 10 million, the company now has cash which is a material asset and extra value from potential to slit between the owners. Now obviously if they liquidated the company they would not get the full value but that's the risk they take for potential.

[@sepultureno666]

there are other criteria used like the feasibility of the deal with respect to industry history for similar ventures. It is basically a negotiation process based on abstractions. I hope someone reads this and corrects me if I am wrong. This is my understanding.

[@sepultureno666]

@mancedok - $5m pre-money evaluation is not an indication of the investment by the owners (5 friends in this case). During the valution process, the angel investor and the entrepreneurs negotiate the valuation. The investor says that I am willing to put in $5m but I want 50% shares of the company. So the pre-money valuation is also set to $5m which will give half ownership to the investor if he invests $5m. This is one of the criteria used for the pre-money valuation

[@baums5808]

@Tailgater how did it go?

[@Linashvili]

good movie

[@raizuken1]

I just have i question at the end your left side have 10 mio and right side is actually 6 mio, or did i miss something?

[@StaceySchroederCanada]

How can I find the next video you stated at the end of this one? I want to continue the story. Thank you in advance.

[@sing4love4fun]

The link is given in the video description above... Here it is www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/venture-capital-and-capital-markets/v/getting-a-seed-round-from-a-vc

[@5Language]

@crisfonsp That's what makes his videos unique. He's been doing this for a long time and has helped very many people with his simple explanations and unique style and I would suggest that he not change a thing.

[@AX-fx7ng]

It'd be great if this was reuploaded in 720p - The lines are all jagged

[@pkspersonal8344]

Dilution is happening in this example, but it's the DILUTION OF OWNERSHIP (CONTROL). Yes, the financial value is the same per share based upon your assumptions, but many times the negotiation and value of the idea is not so generous.

[@furqonlanang9250]

should buy Bitcoin when this video is relased and hold till now

[@HirenKalathiya]

how to valuate the idea?..in other words how did you come up that the idea is of worth $5M?

[@tfnd1111]

Wait did u say people run out of socks every week? Have I been using mine wrong?

[@SnailzRus]

Why is this still on the front page of youtube? its been almost 3 years!!!

[@DarksiderX9]

Money=business=money=greed=misery=allofmankindproblems. I hate money, and the fact that i depend on it (slavery) to live and survive just makes me hate it even more. Will the apocalyptic events that will change the very foundations of this society, please stand up?

[@vervegrande]

Then the video ended! Where is part two?

[@DarksiderX9]

Ignorance (is bliss) - sadly, i was not. Everything has a good and bad side, but maybe i keep on pointing the bad ones, in hope that people stop ignoring them.

[@bahhaziz]

the problem is, how to valuate an idea?

[@techheadzlabs]

really? did you try Centor Cash Code?

[@alexvasilenko540]

Hello! I Have some questions about this topic, if its possible, can anybody answer them. 1- how its possible to issue shares without investing no money in charter capital. I mean how its possible to issue shares from nothing, without having something some material assets?

[@lethalweatherz]

spa developer. Can you give me some inside scoop? start-up strategy input?

[@fundanyproject]

I have a strategy if you are interested...

[@DarksiderX9]

@ddstar Well, yes, yours is a nice reply, showing the bright side of money. But im trying to show the bad side wich is the one that will eventually have more impact in (the end). Greed makes people only look at the bright side of it like you did, for the sake of your wellfare, for the sake of our comfort, ignoring and not caring for the comfort of others.

[@GodlessManitoban]

This video is a year old and it's on the front page. How much did you pay for that?

[@satyamevajayate8966]

I don’t have any money or assets. Is it possible to raise capital from share market from public.

[@shafiqosman4117]

No, ur best bet is to enter business competitions

[@BjoernGelotte]

I guess they asked Harvard to get information how to get to the FrontPage :D :D

[@MrMangostea]

intense mouse control lol

[@GenZTech]

The next video in this series is /watch?v=-hJj5NpWUXQ - or its called "Getting a seed round from a VC" thumbs up so other people can see!

[@baums5808]

i wouldn't of understood anything he said if it wasn't for Shark Tank

[@logicpolice2451]

This is about valuations. Not *how* to raise capital...

[@GodlessManitoban]

@TheBIizzardStorm :-)

[@aloha99992000]

i click on this just to make sure its not the old one..

[@blackghost4823]

so the idea and the skills are worth 5 million dollars??

[@lacho614]

Where's Professor Putin?

[@KristianCramer]

KHAAAAAAAAAAAAANN!!!

[@po1s0ned]

what?

[@some1namedjeff]

ZOOK ZOOK ZOOK ZOOK ZOOK

[@TheClark1205]

He did this video assuming that everyone has friends with money.

[@kumbaso18]

I thought he was going to ask for money.

[@Starworshipper]

@l0rnz0r Shush drone.

[@farquezy]

ideas by themselves have no value.

[@dneuman7455]

say its worth, 2000$ bike frame and it cost you $650 to outsource the rest goes to promotional video - shipping lets say on the high end it was 350$ per unit for that its 1000 potential profit per unit. with potential for 5 million units

[@dneuman7455]

how much is that ?

[@hl3641]

Lol.. there r acutely some billion dollar sock companies now…

[@terminatorgir]

why is this on the front page? only 245500 views in 3 years, not popular, not even a good video

[@ddstar]

@STALKERX9 Oh god. Please. Money = Business = Enriching the lives of others. Without money your little internet wouldn't exist. Neither would your food, clothing or ANYTHING you own / look at. What do you expect people to do? Live like cavemen? You would still have "money".

[@GodlessManitoban]

@GodlessManitoban shit lol 2 years almost 3, my bad.

[@sarahjones20]

Here is a class that teaches valuation: www.groupon.com/deals/startup-saturdays-online-2

[@BoManton]

good information, but goodness, find another way to present. writing it down like that wastes so much time. you could make that 12 minutes into 6 minutes and the information would be just as good and it wouldn't be so annoying waiting for you to write it down.

[@twilightangel5876]

not a visual person are you?

[@djfong]

you are making my future degree in business more and more useless.. haha

[@IrregularPineapples]

I disagree.

[@1t2t3t4t5t6t7]

which average citizen for fucks sake starts a company with 10.000.000$??

[@miguelangelv7]

zzzzzzzzz

[@kennedydafeakeh9772]

You need funding for your business? You may want to check out WEfunder: goo.gl/xyLm6R

[@MikeSmith-dp7iz]

lol he always repeats himself 9 times.

[@magazi21]

@luc59457 U're irrelevant. 4get 500 yrs. it's all about today. What can i do today to better my life? Learn how to start a business the right way for today not 500 yrs. So he is not inteligent to u i assume? Whatz u're point actually

[@Rtoipasaluk]

nothing special..

[@Abbadon380]

BORRIINNGGGGGGGGGGGGGG