Raising Entrepreneurial Capital

Book description

This book focuses on classic capital raising. That is, it covers the debt vs. equity decision, the options available to smaller businesses, and the considerations that lead to rapid growth, including venture capital, IPOs, angels, incubators, and so forth. Raising Entreprenuerial Capital begins where entrepreneurship books leave off, assuming that the reader understands simple financial statements, has selected a specific business, and knows how to write a business plan. It provides a broad, high-level summary of the subjects that people typically research, such as "How should your company position itself to attract private equity investment?" and "What steps can you take to improve your company's marketability?" Unlike other books of the genre, Raising Entrepreneurial Capital includes several chapters on worldwide regional variations on forms and availability of pre-seed capital, incubators, and the business plans they create, with case-studies from Europe, Latin America, and the Pacific-Rim.

* Combines solid theory with practitioner's experience and insights
* Case studies illustrate theory throughout the book
* Describes worldwide and regional variations in capital raising strategies

Table of contents

  1. Front Cover
  2. Raising Enterpreneurial Capital
  3. Copyright Page
  4. Table of Contents
  5. Detailed Table of Contents (1/4)
  6. Detailed Table of Contents (2/4)
  7. Detailed Table of Contents (3/4)
  8. Detailed Table of Contents (4/4)
  9. Chapter 1. Introduction—In the Beginning
    1. Introduction
    2. Organizational Form (1/2)
    3. Organizational Form (2/2)
    4. Creative Sources of Capital (1/2)
    5. Creative Sources of Capital (2/2)
    6. Experts Explain How Small Businesses Fail
    7. Organization of the Book
    8. Summary
    9. Discussion Questions
    10. Case 1.1 New Tech (A): Overview
    11. References
    12. Bibliography
  10. Chapter 2. Alternatives in Venture Financing—Debt Capital
    1. Introduction
    2. Debt Capital Considerations
    3. Approaching Prospective Lenders
    4. Debt Capital Terms and Options
    5. Term of Loan
    6. Case 1: SPS—Financing Strategy
    7. Estimating Financing Requirements
    8. Case 2: MDO Products, Inc.—Start-Up Financing
    9. Estimating Asset Requirements
    10. Estimating the Liabilities and Equity
    11. Case 3: Cajun Yachts, Inc.—Start-Up Financing
    12. Summary
    13. Discussion Questions
    14. Case 2.1 New Tech (B): How Much Do They Need?
    15. Appendix 2.1 New Tech (C): Financial Statements
    16. Appendix 2.2 New Tech (D): Financial Ratios
    17. Appendix 2.3 New Tech (E): Key Assumptions
    18. Bibliography
  11. Chapter 3. Alternatives in Venture Financing—Early Stage Equity Capital
    1. Introduction
    2. Angel Investors
    3. Other Sources of Early-Stage Funding (1/2)
    4. Other Sources of Early-Stage Funding (2/2)
    5. Stages, or ''rounds,'' of Funding
    6. Summary
    7. Discussion Questions
    8. Example 3.1 New Tech (F): Where Will the Money Come From?
    9. Case 3.2 New Tech (G): Are They Worth an Investor's Time?
    10. Case Study: Ecoturista
    11. Bibliography
  12. Chapter 4. Determining the Amount Needed—The Business Plan
    1. The Business Plan
    2. The Investor's Perspective
    3. The Financial Projections (1/2)
    4. The Financial Projections (2/2)
    5. Summary
    6. Discussion Questions
    7. Case 4.1 New Tech (H): Is Management Ready?
    8. Case 4.2 Web Wired
    9. Web Wired Business Plan
    10. Executive Summary
    11. Business Plan (1/2)
    12. Business Plan (2/2)
    13. Appendix 4.1 Sample Business Plan Template
    14. Bibliography
  13. Chapter 5. Valuation—survey of Methods
    1. Introduction: Valuation Methodologies
    2. Asset-Based Valuation
    3. Market Multiples (1/2)
    4. Market Multiples (2/2)
    5. Capitalization Rates
    6. Excess Earnings Approach
    7. Free Cash Flow Valuation (1/2)
    8. Free Cash Flow Valuation (2/2)
    9. Summary
    10. Discussion Questions
    11. Case 5.1 New Tech (I): What is the Company Worth?
    12. Appendix 5.1 Review of Ratio Analysis (1/2)
    13. Appendix 5.1 Review of Ratio Analysis (2/2)
    14. Bibliography
  14. Chapter 6. Venture Capital
    1. Introduction
    2. The Venture Capital Industry (1/2)
    3. The Venture Capital Industry (2/2)
    4. Credible Financial Proposals
    5. Approaching Private Investors
    6. Due Diligence
    7. The Venture Capital Process
    8. The Term Sheet (1/2)
    9. The Term Sheet (2/2)
    10. Summary
    11. Discussion Questions
    12. Case 6.1 New Tech (J): Getting Investors' Attention
    13. Executive Summary of Investment Proposal (Part 1)
    14. Executive Summary of Investment Proposal (Part 2)
    15. Executive Summary of Investment Proposal (Part 3)
    16. Appendix 6.1 Sample Term Sheet
    17. Bibliography
    18. Additional Resources
  15. Chapter 7. Exit Strategies
    1. Components of the Exit Strategy
    2. Likeliest Options for Exit (1/2)
    3. Likeliest Options for Exit (2/2)
    4. Other Potential Buyers
    5. Going Public (1/2)
    6. Going Public (2/2)
    7. Initial Public Offering (IPO)
    8. Open IPO
    9. Alternative Methods Of Going Public
    10. Forms of DPOs
    11. Summary
    12. Discussion Questions
    13. Bibliography
    14. Additional Resources
  16. Chapter 8. Executing the Exit Strategy
    1. Case 8.1 New Tech (K): Finding Compatible Investors
    2. Case 8.2 New Tech (L): Getting Ready
    3. Case 8.3 New Tech (M): Choosing an Offer (1/2)
    4. Case 8.3 New Tech (M): Choosing an Offer (2/2)
    5. Case 8.4 New Tech (N): Closing the Deal
  17. Chapter 9. Franchising
    1. Introduction
    2. A Tale of two Franchises
    3. Franchising Opportunity
    4. Financing the Franchise
    5. Summary
    6. Discussion Questions
    7. Case Study 9.1: Franchising the Neighborhood Restaurant
    8. Bibliography
    9. Additional Resources
  18. Chapter 10. Internal Financial Management
    1. Introduction
    2. The Cash Conversion Cycle
    3. The Cost of trade Credit
    4. The Cash Budget
    5. Sources of Short-Term Financing
    6. Cash Management
    7. Summary
    8. Discussion Questions
    9. Case 10.1 New Tech: Monthly Cash Budget
    10. Bibliography
  19. Chapter 11. Essentials of Risk Management
    1. Introduction
    2. Defining Risk and Risk Management
    3. Relationship of Risk Management to Financial Management
    4. The Risk Management Process
    5. Some Core Risk Management Principles
    6. Common Exposures to Loss
    7. Fundamentals of Risk Control
    8. Fundamentals of Risk Financing
    9. Advantages of Outsourcing Risk Management
    10. Summary
    11. Discussion Questions
    12. Bibliography
    13. Additional Resources
  20. Chapter 12. Opportunities to Do Business and Raise Capital Globally
    1. The Global Mindset
    2. Finding and Working with International Partners (1/2)
    3. Finding and Working with International Partners (2/2)
    4. Raising Equity Capital from International Sources
    5. Due Diligence
    6. Listing on a Stock Exchange Outside the United States
    7. Summary
    8. Discussion Questions
    9. Bibliography
  21. Index (1/4)
  22. Index (2/4)
  23. Index (3/4)
  24. Index (4/4)
  25. About the Authors
  26. About The Guest Authors

Product information

  • Title: Raising Entrepreneurial Capital
  • Author(s): John B. Vinturella, Suzanne M. Erickson
  • Release date: November 2003
  • Publisher(s): Academic Press
  • ISBN: 9780080469997