Entrepreneurial Finance and Accounting for High-Tech Companies
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.
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About the Author
Frank J. Fabozzi is Professor of Finance at EDHEC Business School in France and has held positions at Yale School of Management, Princeton University, and MIT Sloan School of Management. He is the author of Capital Markets: Institutions, Instruments, and Risk Management (fifth edition, MIT Press) and other books.
“Entrepreneurial Finance and Accounting for High-Tech Companies by Frank J. Fabozzi is an outstanding textbook for business school students who wish to start their own companies. This book will definitely become required reading for any serious Entrepreneurial Finance course! I can't wait to use it!”
—Jim Kyung-Soo Liew, Assistant Professor in Finance, Johns Hopkins Carey Business School
“Frank Fabozzi’s new book Entrepreneurial Finance and Accounting for High-Tech Companies reflects his decades-long experiences as an entrepreneur as well as an educator and researcher. The book is comprehensive: in addition to treating entrepreneurial finance from the perspective of the founders rather than from the perspective of a venture capitalist, it also considers financial accounting, legal, and critical tax issues. It is also broad in its range, covering such topics as: negotiating deal terms, valuation methodologies, exit strategies, and profit planning. This book will soon become required reading for practitioners, professors—for teaching and research—and students.”
—Frank Jones, Professor, Accounting and Finance Department, San Jose State University
“Fabozzi has written a comprehensive book that will serve both as a seminal guide for professionals and as an effective centerpiece for entrepreneurial finance and accounting courses at all levels. I highly recommend it to both constituencies.”
—David Brophy, Director of the Office for the Study of Private Equity Finance, Ross School of Business, University of Michigan