European University Institute Library

Entrepreneurial finance and accounting for high-tech companies, Frank J. Fabozzi

eng

Includes bibliographical references and index

illustrations

index present

non fiction

Entrepreneurial finance and accounting for high-tech companies

bibliography

946076206

Frank J. Fabozzi

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., Provided by publisher

Introduction -- Business model, business plan, and exit planning -- Selecting a form of business organization -- Founders stock and employee stock options -- Fundraising and the u.s. securities law -- Pre-liquidation stages of financing -- Financing via equity and equity dilutive securities -- Objectives and principles of financial accounting -- Balance sheet -- Income statement -- Statement of cash flows and the statement of stockholders equity -- Financial ratios -- Financial planning -- Profit planning -- Financial options -- Methods for valuing private companies -- Valuing capital projects -- Real options analysis