Please explain, using an example of a situation, how does the scheme of investing in an IT project, a startup work?

Question

Startups

For example:
I have a project at the prototype stage. I turn to an investor, for example, he says: "I give one million USD and 80% of my share."
It is not clear to me what happens next when further investment is needed to develop the project, provided that it develops successfully.
Those. the first investor sells part of his share to another investor and thus returns his money multiple times? But then it does not help the project in any way. After all, the first investor goes to Jamaica, and the new one is waiting for the weather from the sea. Explain, please.

Answer 1

you have another 20 percent that you can perfectly sell in the next round

Answer 2

Those. the first investor sells part of his share to another investor and thus returns his money multiple times? But then it does not help the project in any way. After all, the first investor goes to Jamaica, and the new one is waiting for the weather from the sea. Explain, please.

For this he invested first

Answer 3

You are not ready to work with VC.
You will most likely be pushed out. and very fast out of the company.
It is necessary:
​​1) to understand what money is needed for and how much is really needed.
2) make sure that the prototype will allow you to remove the main misunderstandings of the project, and will not become a toy.