Buch, Englisch, 656 Seiten, Format (B × H): 183 mm x 260 mm, Gewicht: 1406 g
Buch, Englisch, 656 Seiten, Format (B × H): 183 mm x 260 mm, Gewicht: 1406 g
ISBN: 978-0-19-974475-6
Verlag: OXFORD UNIV PR
Fundamentals of Entrepreneurial Finance provides a comprehensive introduction to entrepreneurial finance, showing how entrepreneurs and investors jointly turn ideas into valuable high-growth start-ups. Marco Da Rin and Thomas Hellmann examine the challenges entrepreneurs face in obtaining funding and the challenges investors face in attracting promising ventures. They follow the joint journey of entrepreneurs and investors from initial match to the eventual success or failure of the venture. Written with the goal of making entrepreneurial finance accessible, this book starts with the basics, develops advanced topics, and derives practical insights. Da Rin and Hellmann build on academic foundations from several disciplines and enrich the text with data, mini-cases, examples, and exercises.
Autoren/Hrsg.
Fachgebiete
Weitere Infos & Material
- Chapter 1: Introduction to Entrepreneurial Finance
- 1.1 What is entrepreneurial finance?
- 1.2 Why is entrepreneurial finance challenging?
- 1.3 Why is entrepreneurial finance important?
- 1.4 Key facts about entrepreneurial finance
- 1.5 The entrepreneurial financing process
- 1.5.1 The need for frameworks
- 1.5.2 The FIRE framework
- 1.5.3 FIRE in practice
- 1.6 Who are the investors?
- 1.6.1 Main types of investors
- 1.6.2 The FUEL framework
- Summary
- Review questions
- Chapter 2: Evaluating Venture Opportunities
- 2.1 Assessing Opportunities
- 2.1.1 The Venture Evaluation Matrix
- 2.1.2 The WorkHorse case study
- 2.2 Explaining the Venture Evaluation Matrix
- 2.2.1 Need
- 2.2.2 Solution
- 2.2.3 Team
- 2.2.4 Market
- 2.2.5 Competition
- 2.2.6 Network
- 2.2.7 Sales
- 2.2.8 Production
- 2.2.9 Organization
- 2.3 Drawing conclusions from the Venture Evaluation Matrix
- 2.3.1 Three perspectives on attractiveness
- 2.3.2 Three competitive advantages
- 2.3.3 Assessing risk
- 2.3.4 Interactions across cells
- 2.4 How entrepreneurs use the Venture Evaluation Matrix
- 2.4.1 The entrepreneur's decision
- 2.4.2 Writing a business plan
- 2.5 How investors use the Venture Evaluation Matrix
- 2.5.1 The Venture Evaluation Matrix spreadsheet tool
- 2.5.2 Investor due diligence
- 2.5.3 The investor's decision
- Summary
- Review questions
- Chapter 3: The Financial Plan
- 3.1 The purpose of the financial plan
- 3.2 Financial projections
- 3.2.1 The three reflections
- 3.2.2 The structure of financial projections
- 3.2.3 Sources of information
- 3.2.4 Developing financial projections
- 3.3 Defining a timeline with milestones
- 3.4 Estimating revenues
- 3.4.1 The top-down approach
- 3.4.2 The bottom-up approach
- 3.4.3 Combining approaches
- 3.5 Estimating costs
- 3.5.1 Terminology
- 3.5.2 Costs of goods sold
- 3.5.3 Operating expenses
- 3.5.4 Capital expenditures
- 3.6 Pro forma financial statements
- 3.6.1 The structure of financial statements
- 3.6.2 Interpreting financial projections
- 3.6.3 Income versus cash flows
- 3.6.4 Testing financial projections
- 3.6.5 Simplifications
- 3.7 Formulating the financial plan
- 3.7.1 The attractiveness of the venture
- 3.7.2 Financing needs
- 3.7.3 Pitching the financial plan
- Summary
- Review questions
- Chapter 4: Ownership and Returns
- 4.1 The mechanics of ownership and valuation
- 4.1.1 Pre-money and post-money valuation
- 4.1.2 Price and number of shares
- 4.1.3 Stock options
- 4.1.4 The capitalization table
- 4.1.5 Dilution with multiple rounds
- 4.2 Investor returns
- 4.2.1 Risk and return
- 4.2.2 Three measures of return
- 4.2.3 Comparing return measures
- 4.2.4 Returns with multiple rounds
- 4.3 The determinants of valuation and returns
- 4.3.1 The relationship between valuation and returns
- 4.3.2 The economic determinants of valuation
- 4.4 The determinants of founder ownership
- 4.4.1 Founder agreements
- 4.4.2 Principles for internal allocation
- 4.4.3 The FAST Tool
- Summary
- Review questions
- Chapter 5: Valuation Methods
- 5.1 The valuation of entrepreneurial companies
- 5.1.1 The purpose of performing a valuation
- 5.1.2 The challenges of performing a valuation
- 5.2 The Venture Capital method
- 5.2.1 Valuation with a single investment round
- 5.2.2 Valuation with multiple investment rounds
- 5.2.3 Estimating the inputs
- 5.2.4 Model variants
- 5.3 The Discounted Cash Flow method
- 5.3.1 The mechanics of the DCF method
- 5.3.2 Estimating the inputs
- 5.4 Methods of Comparables
- 5.4.1 The Investment Comparables method
- 5.4.2 The Exit Comparables method
- 5.5 Modelling uncertainty
- 5.5.1 Scenario analysis and simulations
- 5.5.2 PROFEX
- 5.6 The choice of valuation model
- Summary
- Review questions
- Chapter 6: Term Sheets
- 6.1 Term sheet fundamentals
- 6.1.1 The role of term sheets
- 6.1.2 Contingent contracting and milestones
- 6.1.3 Overview of terms
- 6.2 Cash flow rights
- 6.2.1 Convertible preferred stock
- 6.2.2 Participating preferred stock
- 6.2.3 Reasons for using preferred stock
- 6.3 Compensation
- 6.3.1 Founder employment agreements
- 6.3.2 Employee stock option plans
- 6.4 An overview of other terms
- 6.4.1 Control rights
- 6.4.2 Future fundraising
- 6.4.3 Investor liquidity
- 6.4.4 Additional clauses
- 6.5 Valuation versus terms
- 6.6 Convertible notes
- 6.6.1 How convertible notes work
- 6.6.2 Valuation caps
- Summary
- Review questions
- Chapter 7: Structuring Deals
- 7.1 The art of structuring deals
- 7.2 The fundraising process
- 7.2.1 Preparing the fundraising campaign
- 7.2.2 Executing the fundraising campaign
- 7.2.3 Valuing an idea
- 7.3 Finding a match
- 7.3.1 Investor deal sourcing
- 7.3.2 Investor screening
- 7.3.3 The MATCH tool
- 7.4 Syndication
- 7.4.1 Reasons to syndicate
- 7.4.2 The structure of syndicates
- 7.5 Deal Negotiations
- 7.5.1 Bargaining theory
- 7.5.2 Negotiation analysis
- 7.5.3 Closing the deal
- 7.5.4 Deal negotiations with investor competition
- 7.6 Living with the deal
- 7.6.1 The importance of trust
- 7.6.2 A long-term perspective
- Summary
- Review questions
- Chapter 8: Corporate Governance
- 8.1 The need for corporate governance
- 8.1.1 Why companies need investor involvement
- 8.1.2 Why investors oversee their companies
- 8.2 Corporate governance structures
- 8.2.1 Voting rights
- 8.2.2 Board of Directors
- 8.2.3 Informal control
- 8.3 Investor value-adding
- 8.3.1 Picking versus making winners
- 8.3.2 How investors add value
- 8.3.3 Where investors add value
- 8.3.4 The question of replacing managers
- 8.3.5 Assessing value-adding fit
- Summary
- Review questions
- Chapter 9: Staged Financing
- 9.1 The rationale for staged financing
- 9.2 Structuring staged financing deals
- 9.2.1 Staged investments and ownership
- 9.2.2 The option value of staging
- 9.2.3 Tranching
- 9.2.4 Old versus new investors
- 9.3 Term sheets for staging
- 9.3.1 The liquidation stack
- 9.3.2 Anti-dilution rights
- 9.3.3 Additional rights
- 9.4 Managing financial difficulties
- 9.4.1 Down rounds
- 9.4.2 Turnarounds
- 9.5 Dynamic strategies
- 9.5.1 Dynamic investment strategies
- 9.5.2 Dynamic valuation profiles
- Summary
- Review questions
- Chapter 10: Debt Financing
- 10.1 Fundamentals of debt
- 10.1.1 What is debt?
- 10.1.2 The structure of debt contracts
- 10.2 Debt versus equity
- 10.2.1 The fallacy that debt is cheaper than equity
- 10.2.2 Comparing debt and equity
- 10.3 Why banks don't lend to startups
- 10.4 Alternative types of debt
- 10.4.1 Personal loans and credit cards
- 10.4.2 Trade credit
- 10.4.3 Discounting and factoring
- 10.4.4 Venture leasing
- 10.4.5 Venture debt
- 10.5 Valuation with debt
- 10.5.1 Enterprise versus equity value
- 10.5.2 Adjusting valuation methods for debt
- Summary
- Review questions
- Chapter 11: Exit
- 11.1 The importance of exiting investments
- 11.1.1 Reasons for exit
- 11.1.2 The four main types of exit
- 11.1.3 The exit decision
- 11.1.4 The timing of exit
- 11.2 Initial Public Offerings
- 11.2.1 Benefits and costs
- 11.2.2 Preparing for an IPO
- 11.2.3 Pricing the IPO
- 11.2.4 Structuring the IPO
- 11.2.5 After the IPO
- 11.3 Acquisitions
- 11.3.1 Strategic motives
- 11.3.2 Preparing for an acquisition
- 11.3.3 Structuring an acquisition
- 11.3.4 After the acquisition
- 11.4 Sale to financial buyers
- 11.4.1 Buyouts
- 11.4.2 Secondary sales
- 11.5 Closing down the company
- 11.6 Determinants of the exit decision
- 11.6.1 Market forces
- 11.6.2 Economic fundamentals
- 11.6.3 Internal company dynamics
- Summary
- Review questions
- Chapter 12: Venture Capital
- 12.1 The venture capital model
- 12.2 Institutional investors (LPs)
- 12.2.1 Portfolio allocation choices
- 12.2.2 Building a VC portfolio
- 12.3 Limited Partnership Agreements
- 12.3.1 Fund structure
- 12.3.2 Fund rules
- 12.3.3 GP compensation
- 12.3.4 GP incentives
- 12.4 VC firms (GPs)
- 12.4.1 Internal structure
- 12.4.2 Fundraising
- 12.4.3 Networks
- 12.4.4 Alternatives to the partnership model
- 12.5 Investment strategies
- 12.5.1 The investment strategy
- 12.5.2 Investment strategy styles
- 12.5.3 Implementing the investment strategy
- 12.5.4 An example
- 12.6 Risk and return in VC
- 12.6.1 Gross returns to the VC fund
- 12.6.2 Net returns to limited partners
- 12.6.3 Assessing VC fund performance
- Summary
- Chapter 13: Early-Stage Investors
- 13.1 Founders, family, and friends
- 13.1.1 Reasons for investing
- 13.1.2 How family and friends invest
- 13.2 Angel investors
- 13.2.1 Different types of angel investors
- 13.2.2 How angels invest
- 13.3 Corporate investors
- 13.3.1 The motivation of corporate investors
- 13.3.2 The structure of corporate investors
- 13.3.3 How corporates invest
- 13.4 Crowdfunding
- 13.4.1 The structure of crowdfunding platforms
- 13.4.2 Motivations in crowdfunding
- 13.4.3 Crowdfunding campaigns
- 13.4.4 Returns from crowdfunding
- 13.5 Initial Coin Offerings
- 13.5.1 The Blockchain and cryptocurrencies
- 13.5.2 The structure of Initial Coin Offerings
- 13.5.3 The current debate about Initial Coin Offerings
- 13.6 Further investor types
- 13.6.1 Accelerators and incubators
- 13.6.2 Technology transfer funds
- 13.6.3 Social impact venture investors
- 13.7 Comparing early stage investors
- Summary
- Review questions
- Chapter 14: Ecosystems
- 14.1 Entrepreneurial ecosystems
- 14.1.1 Ecosystem structure
- 14.1.2 Overview of leading ecosystems
- 14.2 How do entrepreneurial ecosystem work?
- 14.2.1 Interactions within the talent pool
- 14.2.2 Interactions with investors
- 14.2.3 Interactions with supporting parties
- 14.3 The role of government
- 14.3.1 Should the government support entrepreneurial ecosystems?
- 14.3.2 Government funding
- 14.3.3 Tax credits
- 14.3.4 Capital markets
- 14.3.5 Framework conditions
- 14.3.6 Demand side policies
- 14.4 Global ecosystems
- 14.4.1 The global movement of capital
- 14.4.2 The global movement of talent
- Summary
- Review questions
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- Bibliography
- Index
