Entrepreneurial Finance, 2nd Edition

by Richard L. Smith (Claremont Graduate Univ.); Janet Kiholm Smith (Claremont McKenna College)

• ISBN13: 9780471230724
• ISBN10: 0471230723
• Edition: 2nd
• Format: Hardcover
• Copyright: 2003-10-01
• Publisher: Wiley

Summary

Smith and Smith apply current thinking in the areas of valuation, real options, and the economics of contracts to new venture decision making. Readers learn to think of new ventures as portfolios of real options, value financial claims of the entrepreneur and venture capital investors, and structure financial contracts in light of new venture information problems. They also learn to use simulation and scenario analysis to evaluate the implications of uncertainty and financial decisions. * Stresses the importance of strategy in new venture planning. * Develops real-world context through relevant examples. * Spreadsheet modeling and simulation using custom software provides hands-on learning.

Author Biography

<b>Richard Smith</b> is Professor of Financial Management at the Peter F. Ducker Graduate School of Management, Claremont Graduate University, where he teaches courses on new venture finance, and strategic risk management. He also is Director of the Venture Finance Institute at Claremont. Professor Smith has served on several boards that are responsible for investing on behalf of pension funds and university endorsements, and has consulted extensively for venture capitalists, business angels, entrepreneurs, and government, on matters involving investment, valuation, financial contracting, securities litigation, and antitrust. <p> <b>Janet Kiholm Smith</b> is the Von Tobel Professor of Economics at Claremont McKenna College, where she teaches course on the economics of strategy and industrial organization. She currently serves on the College&#8217;s investment committee and consults on matters related to working capital management, the economics of contracts, and antitrust. She is the author of numerous journal articles, including publications in <i>Journal of Legal Studies, Journal of Finance, Journal of Corporate Finance, Journal of Financial and Quantitative Analysis, Journal of Law and Economics,</i> and <i>Journal of Law, Economics and Organization.</i> <p> >

Table of Contents

PART 1. GETTING STARTED.

Chapter 1. Introduction.

Chapter 2. An Overview of New Venture Financing.

PART 2. FINANCIAL ASPECTS OF STRATEGIC AND BUSINESS PLANNING.

Chapter 3. The Business Plan.

Chapter 4. New Venture Strategy.

Chapter 5. Developing Business Strategy Using Simulation.

PART 3. FINANCIAL FORECASTING.

Chapter 6. Methods of Financial Forecasting.

Chapter 7. Assessing Financial Needs.

PART 4. VALAUATION.

Chapter 8. The Framework of New Venture Valuation.

Chapter 9. Valuation in Practice: The Investor’s Perspective.

Chapter 10. Valuation: The Entrepreneur’s Perspective.

PART 5. ORGANIZATIONAL DESIGN AND FINANCIAL CONTRACTING.

Chapter 11. Financial Contracting with Symmetric Information.

Chapter 12. Dealing with Information and Inventive Problems.

Chapter 13. Financial Contracting.

PART 6. FINANCING AND HARVESTING CHOICES.

Chapter 14. Venture Capital.

Chapter 15. Choice of Financing.

Chapter 16. Harvesting.

PART 7. CONCLUSION.

Chapter 17. The Future of Entrepreneurial Finance: A Global Perspective.

Index.