[MUSIC] In this session, we will do some funding-related practices. This practice is about Series A, and I started a company with a seed money of $200,000 from a friend of mine, F. And this is the capitalization table before Series A. So I have 50,000 shares with 50% share, and my friend F has 20,000 shares at 20%, and the employees have remaining 30%. And we decided to have a Series A round with a venture capital money investment of $2.5 million and the pre-money valuation was $7.5 million. Pre-money valuation means the valuation of my company before Series A. So let's construct the cap table after Series A, and let's also calculate the share price for the Series A round. So since the pre-money valuation is $7.5 million, and after we receive a $2.5 million, the value of the company will become $10 million, and this is called the post-money valuation. And after Series A, the value of the company is $10 million, and the venture capital firm puts $2.5 million, so their share will be 25%. And then we need to calculate the number of shares for this venture capitalist. We can obtain this by solving for this X over 100,000 shares. That's total number of shares before Series A plus X. X is the number of shares for this venture capital firm. If you get this X, this X will be 33,333 shares. So let's construct the capitalization table after Series A. So the number of shares for myself, my friend, and the employees are not changed. But now, we have a new shares for this VC, and so here's the new total. And we know that the share for the venture capitalist after Series A is 25%, and the existing sharers are reduced like this, or this is called diluted, like this. And the Series A share price is determined by the ratio between the pre-money valuation and the total number of shares before Series A, and that is $75.