Entrepreneurial Finance

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An Essential Resource for Entrepreneurs, Angel Investors, and Venture Capitalists About half of all new businesses fail in the first five years. So whether you're bringing your new idea to market or investing in new ventures, make sure you have the tools, state-of-the-art valuation methods, and practical knowledge you need to make smart business decisions. Now updated with late4-breaking data and references, Smith and Smith's ENTREPRENEURIAL FINANCE, 2nd Edition equips you with an effective framework of financial economic principles to guide you through the process of incubating and growing a new venture. You'll 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. KEY FEATURES Applies financial economic theory and the economics of contracts to the study of entrepreneurship and new venture finance. Blends finance theory with the practical aspects of new venture financing. Emphasizes the importance of strategy in new venture planning. Uses a valuation perspective to approach topics such as strategic planning, business planning, financial modeling, assessing financing needs, raising outside financing, structuring financial contracts with investors, and harvesting. VALUABLE SOFTWARE AND ONLINE RESOURSES Venture SIMTM, the authors' own custom simulation software. Cases complete with downloadable Excel templates. Tutorials on suing the simulation software, basic finance and statistical concepts, and on the more technical valuation tools covered in the text. Downloadable valuation templates.