Here is a super-short version: 1) You have an idea 2) You do some work to prove the viability of this idea, generally in some proportion to the complexity of

Here is a super-short version: 1) You have an idea 2) You do some work to prove the viability of this idea, generally in some proportion to the complexity of implementing the idea (eg: if the idea is a webapp, you write some code, maybe get a beta site going. If the idea is a new fab process to build a 1 micron 1000-core supercomputer, then you tend to do more research than actual real-world implementation) 3) You convince someone that your idea is worth $X(XXX(XXX(XXX))) 4) You form a legal corporation and issue shares of stock (typically 100,000,000 or so). 5) You now have a pool of shares (100,000,000) and an agreed upon valuation for the company (let's say that valuation is $100,000,000 to make the math easy). Each share is then worth $1. 6) You sell some number of those shares to one or more investors. Now you (you being the corporation) have money to implement your idea and bring it to fruition. Again, grand simplification, but that is the general outline.