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vocabulary related to company financing.
All companies need to raise capital to
begin operations. These startup companies
may choose to bootstrap the company
using personal funding to provide seed
Or they may seek out angel investors and venture capital
by offering equity in rounds of financing called series A, B and C.
They may also seek out strategic investors
capital is money or other assets used to start a business
company may also raise capital to fund growth or expansion
now that we've finished our business plan
we're looking to raise enough capital to make it happen
a start up is a relatively new business that has the potential for growth
startups focus on a service that many people want
and aim to reach a large market by scaling up
after a couple of years at facebook
I moved to a new startup in Silicon Valley
bootstrapping is when a person starts a business without a lot of capital or investors
Bootstrapping entrepreneurs often invest their own money
and a lot of hard work to grow their company
we bootstrapped our first company
because we couldn't attract any investors
personal funding personal funding
personal funding is an entrepreneur's own money and assets
personal funding might also include
loans or gifts from family or friends
i started my business with just personal funding
including $20,000 from my parents
the money used initially by a business
to begin operating is seed capital
Seed capital often includes personal funding
or money from wealthy investors
our seed capital came from several
outside investors and some personal
funding from the founding partners
angel investors are individuals or
groups who give money as well as
invest in the early stages of a start-up
and typically receive equity in the new
after getting us through the first two
years our angel investors sold off his
stake and moved on to another startup
equity financing is when a company
offers a share of ownership in exchange
for money to start or grow the company
we're looking at equity financing for
our company but we don't want to give up
more than twenty-five percent ownership
is a business that invests other
people's money in new businesses with
good potential for fast growth
unless you can show the potential for
long-term growth you're going to have
trouble attracting venture capital
if it is successful a new business may
seek additional rounds of financing
each round of financing corresponds to a
different stage in the growth of a
after a successful first year of
business chatbot is hoping around of
series b financing will help them expand
strategic investor lends a company not
just money but also experience knowledge
normally focus on one industry
we're looking for a strategic investor
with the experience and contacts to help
us succeed in the food industry
now it's your turn to practice some of
the words we've looked at in this lesson
in a moment you'll hear a series of
sentences with a word replaced with a
beep repeat each sentence including the
we were fortunate to get funding from an angel
you can say we were fortunate to get
funding from an angel investor early on
answer after each question, ready?
I've put over 50000 dollars of personal
I've put over $50,000 of personal funding into this
many young people dream of getting rich
answer many young people dream of
getting rich off their own startup
bob has some great ideas but no seed capital
that's all for this episode of video vocab
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