 money is to feel important. Everyone has a good job. And many times, the way to go there is to build a relationship and to go to an area that these angel investors actually understand. Because they can add value which is not just the money. Every investor in every state wants to feel that they are not just providing funds but also providing some strategic value and the realities that is most important for the business sector. Good. Venture capital, so serious A and B, what they want to make is two things. It's these two. A return of the fund. What does it mean? Let's say that the fund, they raise money as a venture capital. What a venture capital? It's raise money from investors who invest in the fund so they can invest the money in companies. They make some money out of the management but most of the money if they make successful investments. There's good alignment. There's okay alignment for interest. So let's say they have 10 million. How many investments do you think they do with 10 million dollars? 5, 15, 500, 1. So if they do 1, high risk, right? We see that the risk portfolio is anyway up. I mean even here when it's lower it's still high risk. The risk is very, very high at this stage. 90% of businesses that will raise money from venture capital will fail. So normally they will invest, you know, a fund will invest in up to 10, maybe 15 companies. And the reason, there are two reasons. First, it's usually two or three people, five people managing a fund. It's not just possible to invest in so many companies. So when you start to talk with investors, you really need to know what is the size of their fund because it will tell you how much they want to put in every investment. So if they're doing, let's say about 10, 10 to 20, let's say 10 so it's very easy to calculate. And the fund is 10 million. They're in each company. How much do they put? Normally they'll put less. They'll put half a million so they keep half a million for later, for in the future hours. But let's, for the ease of calculation, set to put a million. Now imagine that you come to them with the most amazing business ever and you ask for 100,000. What are they going to say? Yes or no? But it's the most amazing business ever. No, right? It doesn't fit their investment criteria. Even if they will think that it's a good business, they will still say, yeah, come to talk with us later when you're ready for a million. Because if they can't do 100 investments, okay, it doesn't work. And the reason it doesn't work is that their model works like this. This is kind of, you know, the home run model. They're going to make 10 investments. They need two or three to be like, okay, it exists. Two times the money, three times the money that they invested. That's going to be what they're going to get when they exit. Six or seven will fail. And one will be the home run. The home run means that they're going to make so much money on this investment that this will return the entire fund. So they put 1 million in each company out of the 10 million, but they expect one company to bring back 10 million. Now, obviously they don't know which of the 10. If they knew they would only put the money in that, they would do what you just said. Just choose one company. Just choose the winner. Who knows where is the winner? It means that when we go and talk to investors, we need to be making sure that we're sending to them a business that can become a home run. Because they don't know if this or that. But if it's going to be just an okay business to start with, it doesn't work for the model. It needs to be a business that can become, and it's high risk. Everyone knows it. But there is the potential to return the entire fund. And again, depending on the size, if the fund is 100 million, then the discussion is completely different. You need to make sure that they will make revenue of 100 million and taking into account that they will take 10, maybe 20 percent of the business. It means that the business will be sold for half a billion to a billion. You don't get that. All right. There are second reason that venture capital invest is not to miss out. It's not to let someone steal this deal from you. Meaning that what you really need to do is to try and get at least two offers if everyone's a better negotiation. So how much money should you raise? Any thoughts? How much money to raise? Yes, as much as possible. More? Good. So raising money normally, you know, as much as you can. And as much as the investor is willing to invest, right? The most important is to make sure that you make a plan. You need to come with a business plan to show how you're going to spend the money. And it needs to be like a runway allowing the company to operate between 15 to 18 months. That's roughly what the investors expect. And by that time, you need to reach a milestone in the business at the news, et cetera, increasing something that will justify another funding round at a higher valuation. Now, you will think that you will need 200 in order to get from now to 18 months, so you should probably raise 300 or 400. Because business plan is one thing, and reality is completely different. Nothing works like in the business plan. For good and for bad, but nothing works like in the business plan. It's good to do the business plan in order to settle the election, but then everything goes on, goes on, and a lot of flexibility will work. So how much money to raise? Enough of 15 to 18 months, so you can get to the next milestone as much as you can from the investor according to what they have and more than actually what you think you need. And now for your question. How do you set the value? How do you set valuation? And now one knows what is the value of capital? Six hundred to two billion. Yeah, good. It just went up by like 40 billion yesterday. So companies that are listed on the exchange, their value, value are being set every second of the trade, right? This is the price of their shares. Private companies, listed are not public, so you don't know what is their value. So there are all kinds of models to try and estimate their value. Normally how you do that in more advanced businesses, either by multiple arms comparing it to other companies or by DCF, which is discounted cash flow. These are all great models, but they don't work for startups. It's just very early in the business stage in order to understand. So the value is being set by one thing. How, when you are negotiating. There are a few examples, for example, UK now, valuation says, if you come with an idea, with a concept and a team who can probably raise on a free money valuation of half a million or lots of funds. It's very, very, very, very, very, very hard to raise money. It's ten times harder just to raise money on an idea. But if you manage to do it, that's kind of the valuation. And if you already have some traction, it's going to be around the million. The free money valuation. That's kind of the guidance of things, how they work. But the most important thing is the negotiation. How do you know how to negotiate? To answer your question, finally. Every pumping ground is between 10% to 30% dilution. 10% when you are very established and have a lot of negotiation power. 30% when you have less negotiation power. And every number in the middle is the reality. How can you get more negotiation power? The best thing to get negotiation power is to get another offer. If you have five offers to choose from, that's what you want to achieve. That's why it's so important to talk with so many investors. Not to be defending in the end just one that could hold, you know, the 15 to 18 months have gone and you've been out of money and you don't have much negotiation power. So you get the 30% dilution. So what investors want? I'll try to say, but the question is later today. The most important thing is to ask. If you've already built and sold three businesses and you've come to successfully solve it, and now you're going to raise money for another business, it's going to be various. You're going to just say to the investors, I have an idea and here is where you sign. Because you've proved already that you can make it. It's very, very easy. Unfortunately not my case, you know, maybe your case. If so, you probably should switch. If not, then tell you what works for me. The most important thing is traction. Why is traction? What is traction? Traction can be revenues, users, downloads, et cetera. Why is traction so important? Because it's a proof. When someone willing to pay for something, either money or time, it's a proof that it does something, right? The second thing that, you know, if you don't have the traction, or the seminar is more important is you, especially at the early stage, investors invest in the team. Or in the person. It's a thing that they want. It's the team who managed to do it. It's the team who's going to run the business. And the investors know that things will go wrong and what we thought won't happen. They know that. So if they're an investor, if not, they should not invest because it is a high-risk investment. They know things would go wrong. They just need to choose the right people. So you, this is critical of the investor. So when you talk to them, you need to convince why you are. The next one is social proof. No one wants to be the fool who is the only one to do it. So what is social proof? Social proof is to show that an offer from someone else to get some media coverage, to win start-up competitions, these are so important, mainly because there is money, but mostly all the social proof. Then there is the product and market that needs to be attractive, the presentation, the pitch, but these are the less important. And the most important thing is all the...