Hi there.
Welcome to a course on how to get seed funding although this course is centered around how to raise
up to a hundred thousand pounds or one hundred thousand dollars.
We still cover a certain amount of information that would lean towards raising a million or so.
But before we get into the course I want us to learn a few definitions because we're going to come across
this or I'm going to use these words as we go along in the course the first one.
Believe it or not is a word called Startup.
Somebody says well we already know what that means.
But in relation to raising funding when somebody talks about startup they mean a business that is likely
to go global.
So somebody starting by maybe creating a technology product or creating a service that they hope will
make millions and billions of pounds or dollars.
That's the way that startup is looked at when it comes to raising funds.
Your definition is a small business.
Now many people look at a small business and say well I'm not interested in a small business I want
to start.
I want my business to be like Facebook or whatever.
The fact of the matter is that most people might want a small business a small business does not mean
it's making 500 dollars a month.
No a small business could actually mean that it's make it a million pounds every single month and has
lots of employees and it's delivering good products and services to their target group and they're really
doing very very well.
So when we talk about a small business it tends to be more localized or a national type of business
although it may sell its products outside its geographical boundaries but it tends not to have the same
ideas that a startup will have.
OK the next is equity equity is share ownership in your business.
So when you are raising equity finance it means that you are given up part of your shareholding in your
business which means in the UK you will need to have a limited company to be able to raise equity finance.
All right when we come back I'll give you more information and look up more definitions CNN moment.