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As listed in this textbook, there are four different ways that startup firms can raise financial capital.
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The first one is early stage investors.
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This is an example, for example, if you think a venture capitalists who gain money for a stake in the company.
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In other words, borrowing money.
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We also have angel investors, which are common in silicon valley, where they put their own money in exchange for, again, owning some portion of the firm.
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The second way in which you can raise money or raise capital is reinvesting profits.
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Because if firms are earning profits, they can put some of the money back into research and then the equipment or the materials needed for their startups...