Venture Capital and the Finance of Innovation, 2nd Edition

THE FINANCIAL PRINCIPLES EVERY VENTURE CAPITALIST NEEDS TO MASTER

In Venture Capital and the Finance of Innovation, Second Edition, future and current venture capitalists will find a useful guide to the principles of finance and the financial models that underlie venture capital decisions. Assuming no knowledge beyond concepts discovered in first-year MBA courses, the book will familiarize you with:

• The relationships between risk and return in venture capital.
• Total Valuation-the data and methods used to value a high-growth company.
• Partial Valuation-how to visualize and evaluate the special features of VC transactions such as convertible preferred stock, participating preferred stock, payment-in-kind dividends, and liquidation preferences.

New to the Second Edition:

• NEW Rankings of the best venture capitalists.
• NEW web-based model (VCVtools.com) allowing easy visualization and valuation so multiple term sheets in a start-up.
• Discussion of challenges facing venture capital in the second decade of the 21st century.