Financial aspects of launching and operating a high-tech company, including risk analysis, business models, U.S. securities law, financial accounting, tax issues, and stock options, explained accessibly. This book offers an accessible guide to the financial aspects of launching and operating a high-tech business in such areas as engineering, computing, and science. It explains a range of subjects—from risk analysis to stock incentive programs for founders and key employees—for students and aspiring entrepreneurs who have no prior training in finance or accounting. The book begins with the rigorous analysis any prospective entrepreneur should undertake before launching a business, covering risks associated with a new venture, the reasons startup companies fail, and the stages of financing. It goes on to discuss business models and their components, business plans, and exit planning; forms of business organization, and factors to consider in choosing one; equity allocation to founders and employees; applicable U.S. securities law; and sources of equity capital. The book describes principles of financial accounting, the four basic financial statements, and financial ratios useful in assessing management performance. It also explains financial planning and the use of budgets; profit planning; stock options and other option-type awards; methodologies for valuing a private company; economic assessment of a potential investment project; and the real options approach to risk and managerial flexibility. Appendixes offer case studies of Uber and of the valuation of Tentex.
After an introduction to financial markets and market participants, including asset management firms, credit rating agencies, and investment banking firms, the book covers risks and asset pricing, with a new overview of risk; the structure ...
Chapter 13 Portfolio Selection Theory 427 Finally, the third theme of behavioral nance shows how errors caused by heuristics ... In the context of behavioral portfolio theory, investors place at the top of the pyramid a few stocks of an ...
The book begins with an introduction to financial markets, offering a new chapter that provides an overview of risk—including the key elements of financial risk management and the identification and quantification of risk.
The distinction between risk and uncertainty was first made in 1921 by two economists, Frank Knight1 and John Maynard Keynes.2 The distinction that Knight made between risk and uncertainty is as follows. He argued that “risk” applies to ...
The book covers all relevant facets of accounting and finance not covered by any other publication by using straight-forward language, extensive practical illustrations and case studies to demonstrate the financial understanding that has ...
This book examines the proliferation of new sources of entrepreneurial finance and how these sources have the potential to make it easier for ventures to raise capital and grow.
Largely reflecting European businesses and with a European perspective, the text is grounded in sound theoretical foundations.
Journal of Business Finance and Accounting, 39(3–4), 500–530. Houlihan Valuation Advisors. (1998). The pricing of successful venture capital backed high tech and life sciences companies. Journal of Business Venturing, 13(5), 333–351.
Provides a comprehensive picture of issues dealing with different sources of entrepreneurial finance and different issues with financing entrepreneurs. The Handbook comprises contributions from 48 authors based in 12 different countries.
Business incubation mechanisms and new venture support: Emerging structures of US science parks and incubators. ... In S. Mian, M. Klofsten, & W. Lamine, Handbook of Research on Business and Technology Incubation and Acceleration (pp.