Venture Capital and the Finance of Innovation
eBook - PDF

Venture Capital and the Finance of Innovation

  1. 496 pages
  2. English
  3. PDF
  4. Available on iOS & Android
eBook - PDF

Venture Capital and the Finance of Innovation

About this book

An invaluable resource for current and aspiring technology investors, Venture Capital and the Finance of Innovation provides an in-depth understanding of the tools and models needed to succeed in this competitive and highly fluid business environment. Building on a comprehensive introduction to fundamental financial and investment principles, the text guides the reader toward a robust skill set using enterprise valuation and preferred stock valuation models, risk and reward, strategic finance, and other concepts central to any venture capital and growth equity investment.

Two features of the book stand out from other sources on the subject. First, it pays special attention to the enterprise valuation methodology for high-growth companies. What drives the value of a company that has little physical assets, losing money now but has a small chance of achieving great success in several years? How do you create estimates for sales, profit and return on capital when little data is available? The book answers these questions using a discounted cash flow model that is tailor-made for technology companies (DCF.xlsx downloadable from the instructor website), and the comparables model. Second, it highlights the most valuation-relevant feature of VC term sheets, namely the use of convertible preferred stock. The book shows the reader how to use a user-friendly and automated valuation model of VC preferred stock (available at www.vcvtools.com ) to value various types of preferred stock and to visualize how term sheets split the values of the firm between entrepreneurs and VCs.

Accessible, comprehensive, and assuming only basic knowledge of venture capital, this text offers essential guidance for successful VC and growth equity investing in any market.

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Yes, you can access Venture Capital and the Finance of Innovation by Andrew Metrick,Ayako Yasuda in PDF and/or ePUB format, as well as other popular books in Business & Corporate Finance. We have over one million books available in our catalogue for you to explore.

Information

Publisher
Wiley
Year
2021
Print ISBN
9781119490111
eBook ISBN
9781119494355
Edition
3
Topic
Business
Subtopic
Corporate Finance
Index
Business

Table of contents

  1. COVER
  2. ABOUT THE BOOK
  3. TITLE PAGE
  4. COPYRIGHT
  5. ABOUT THE AUTHORS
  6. ACKNOWLEDGMENTS
  7. PREFACE TO 3RD EDITION—A READER’S GUIDE
  8. ABOUT THE INSTRUCTOR WEBSITE
  9. BRIEF CONTENTS
  10. CONTENTS
  11. CHAPTER 1 THE VC INDUSTRY
  12. CHAPTER 2 VC PLAYERS
  13. CHAPTER 3 VC RETURNS
  14. CHAPTER 4 THE COST OF CAPITAL FOR VC
  15. CHAPTER 5 THE BEST VCs
  16. CHAPTER 6 VC AROUND THE WORLD
  17. CHAPTER 7 THE ANALYSIS OF VC INVESTMENTS
  18. CHAPTER 8 TERM SHEETS
  19. CHAPTER 9 PREFERRED STOCK
  20. CHAPTER 10 THE VC METHOD
  21. CHAPTER 11 DCF ANALYSIS OF GROWTH COMPANIES
  22. CHAPTER 12 COMPARABLES ANALYSIS
  23. CHAPTER 13 OPTION PRICING
  24. CHAPTER 14 THE VALUATION OF PREFERRED STOCK
  25. CHAPTER 15 LATER-ROUND INVESTMENTS
  26. CHAPTER 16 PARTICIPATING CONVERTIBLE PREFERRED STOCK
  27. CHAPTER 17 IMPLIED VALUATION
  28. CHAPTER 18 COMPLEX STRUCTURES
  29. CHAPTER 19 R&D FINANCE
  30. CHAPTER 20 MONTE CARLO SIMULATION
  31. CHAPTER 21 REAL OPTIONS
  32. CHAPTER 22 BINOMIAL TREES
  33. CHAPTER 23 GAME THEORY
  34. CHAPTER 24 R&D VALUATION
  35. APPENDIX A SAMPLE TERM SHEET
  36. APPENDIX B THE VCFI SPREADSHEETS
  37. APPENDIX C GUIDE TO ORACLE CRYSTAL BALL
  38. GLOSSARY
  39. INDEX
  40. EULA