Venture Capital and the Financing of Innovation Andrew Metrick and Ayako Yasuda is an English-language textbook that provides insight into venture capital and the financial aspects of innovation. The book is aimed at students and professionals who want to go deeper into the valuation of growth companies and venture capital financing.
This textbook covers essential financial models, such as enterprise valuation and preferred stock valuation, needed to succeed in venture capital and growth capital. It emphasizes valuation methods for fast-growing technology companies, with the use of discounted cash flow models for companies with limited tangible assets at the core. In addition, the role of convertible preferred stock in VC term sheets is explained in detail, supported by practical valuation models.
The book aligns with topics such as Finance and Accounting and Business & Economics, especially in the area of accounting and general financial principles. Ideal for higher education and professionals who want to delve into venture capital and innovative forms of financing.