Venture Capital and the Finance of Innovation

VENTURE CAPITAL AND THE FINANCE OF INNOVATION, 2nd Edition, Andrew Metrick and Ayako Yasuda, eds., John Wiley and Sons, Inc., 2010

44 Pages Posted: 10 Sep 2006 Last revised: 10 Jun 2012

Andrew Metrick

Yale School of Management; National Bureau of Economic Research (NBER)

Ayako Yasuda

University of California, Davis - Graduate School of Management

Date Written: September 2010

Abstract

This article contains the front matter plus the first chapter from the textbook, Venture Capital and the Finance of Innovation. The book is intended for finance classes on venture capital at the MBA or advanced undergraduate level. The book is divided into four parts, with six chapters each. Each of these four parts has a major finance theme: the theme of Part I is the relationship between risk and return; the theme of Part II is the valuation of high-growth companies; the theme of Part III is the analysis of capital structure; the theme of Part IV is the relationship between strategy and finance. Overall, Parts I and II are heavy on data and definitions and are intended to provide students with the vocabulary of VC and knowledge of the key industry facts. Although these two parts contain some new definitions and approaches, most of the material should seem familiar to a VC practitioner. In contrast, Parts III and IV are more theory based and provide a new perspective on the evaluation of VC and other high-technology investments. Although these latter two parts might seem experimental to a practicing VC, financial economists will recognize the material as a straightforward translation of well-known methods.

Keywords: venture capital, innovation, valuation, real options

Suggested Citation

Metrick, Andrew and Yasuda, Ayako, Venture Capital and the Finance of Innovation (September 2010). VENTURE CAPITAL AND THE FINANCE OF INNOVATION, 2nd Edition, Andrew Metrick and Ayako Yasuda, eds., John Wiley and Sons, Inc., 2010. Available at SSRN: https://ssrn.com/abstract=929145

Andrew Metrick (Contact Author)

Yale School of Management ( email )

165 Whitney Avenue
New Haven, CT 06511
United States
(203)-432-3069 (Phone)

HOME PAGE: http://faculty.som.yale.edu/andrewmetrick/

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Ayako Yasuda

University of California, Davis - Graduate School of Management ( email )

One Shields Avenue
Davis, CA 95616
United States
530-752-0775 (Phone)
530-752-2924 (Fax)

HOME PAGE: http://www.ayakoyasuda.com

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