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Originally published: 29/09/2016 15:10
Publication number: ELQ-50650-1
View all versions & Certificate

Venture Capital Method (Single Round Financing)

A full model enabling an entrepreneur to understand assumptions of both sides of the table in a single round financing

by Prof. Moana Vercoe
Professor of Economics, PhD from Claremont Graduate UniversityFollow 94

132 reviews14,472 views|3 comments|Bookmark download for free

investmentfinancevaluationfinancingventure capitalassumptionsentrepreneursingle roundunstaged investmentstaged investment

Description
"Objectives of this model:

• Understand how and why staging and other real options affect the values of new venture financial claims

• Value the financial claims of a new venture using either discrete scenario analysis or simulation

• Use financial modeling and valuation techniques to study game theoretic issues that arise for the parties to a new venture

• Evaluate the effects of alternative financial contracts on the values of the financial interests of the entrepreneur and outside investors

• Know how to construct financial contracts to signal information and align incentives"

Includes:
-> Entrepreneur's Assumptions - Financial Model Based on Business Plan
-> Investor's Assumptions - Financial Model Based on Business Plan
-> Staged Investment Decision Model
-> Valuation of Unstaged Investment - Venture Capital Investor
-> Valuation of Staged Investment - Venture Capital Investor
-> Valuation-based Contracting Model of Ownership Shares
-> Risk and Return of Entrepreneur's Financial Claim
->Valuation of Entrepreneur's Interest in Venture

- Entrepreneurial Finance, by Janet Kilholm Smith, Richard L. Smith and Richard T. Bliss

Purchase the book here: https://www.amazon.fr/dp/0804770913

This Best Practice includes
1 Excel Model

Prof. Moana Vercoe offers you this Best Practice for free!

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Reviews

• MGG(last updated: 19/10/2019 21:55)
  
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• Romualdo Romeo Ortiz716(last updated: 18/09/2019 02:58)
  
• Veera Arava(last updated: 17/09/2019 09:09)
  

  good to start

  good to start
• Brandon Salimi(last updated: 10/09/2019 18:49)
  
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• Alejandro Hughes Stefani(last updated: 03/06/2019 15:29)
  

  Questions

  Hi I would like to see how it works, I don't quite get a couple of the inputs
• Quan Quach(last updated: 31/05/2019 10:11)
  

People using this Best Practice also downloaded

Post Comment

• 

  Pat Drinan 4 months ago
  Downloadable Tool Useredit

  Hello Professor,
  Can you please assist - how can I unprotect cells tp amend some of the assumptions?
  Thanks.

  arrow_drop_uparrow_drop_downReply reply

  • 

    Pat Drinan 4 months ago
    Downloadable Tool Useredit

    Hi,
    I just figured it out.
    Now I see this is a really useful tool - Thank you!
    Pat.

    1arrow_drop_uparrow_drop_downReply reply

    • 

      Eloquens Team 4 months ago
      Eloquens Authorschool

      We're glad you figured it out Pat! :) Feel free to share your method to unprotect the cells here for other users to see if you want.

      arrow_drop_uparrow_drop_downReply reply