Financial aspects of launching and operating a high-tech company,
including risk analysis, business models, U.S. securities law, financial
accounting, tax issues, and stock options, explained accessibly.
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.
