Raising Entrepreneurial Capital - Edition 2 - By John B. Vinturella and Suzanne M. Erickson Elsevier Inspection Copies

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Raising Entrepreneurial Capital,

Edition 2

By John B. Vinturella and Suzanne M. Erickson

Publication Date: 18 Jan 2013

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Raising Entrepreneurial Capital guides the reader through the stages of successfully financing a business. The book proceeds from a basic level of business knowledge, 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 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?"

Much has changed since the book was first published, and this second edition places effects of the global recession in the context of entrepreneurship, including the debt vs. equity decision, the options available to smaller businesses, and the considerations that lead to rapid growth, including venture capital, IPOs, angels, and incubators. Unlike other books of the genre, Raising Entrepreneurial Capital includes several chapters on worldwide variations in 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.

Key Features

Combines solid theory with a practitioner's experience and insights
Case studies illustrate theory throughout the book
Updated to reflect the realities of the global economic recession

About the author

By John B. Vinturella, Business Consultant, Cincinnati, OH, USA and Suzanne M. Erickson, Brenau University, Gainesville, GA, USA

Dedication
Preface
Acknowledgments
1. Introduction
- Getting Started
- The Typical American Business
- Requirements for Being Considered a Small Business
- Small Businesses’ Role in the U.S. Economy
- Understanding the Characteristics of Small Businesses
- Examples of Opportunities for Self-Employed Entrepreneurs
- The Home-Based Alternative
- Is Fractional Entrepreneurship the Way to Start?
- Characteristics of Business Owners
- Global Entrepreneurship
- Creative Sources of Capital: Bootstrapping
- Initial Sources of Capital
- Small Firms’ Typical Use of Financial Services
- Bootstrap Strategies
- Growing the Business
- Raising Funds Using Social Networking
- Perspectives on Small Business Failure
- Organizational Form
- Ownership Structure and Capitalization
- Organization of the Book
- Summary
- Discussion Questions
- Case 1.1 New Tech (A): Overview
- Bibliography
2. Alternatives in Venture Financing: Debt Capital
- Introduction
- Case 2.1 SPS: Financing Strategy
- Case 2.2 MDO Products, Inc.: Start-Up Financing
- Case 2.3 Cajun Yachts, Inc.: Start-Up Financing
- Summary
- Discussion Questions
- Case 2.4 New Tech (B): How Much Do They Need?
- Appendix 2.1 New Tech (C): Financial Statements
- Appendix 2.2 New Tech (D): Financial Ratios
- Appendix 2.3 New Tech (E): Key Assumptions
- Bibliography
3. Alternatives in Venture Financing: Early-Stage Equity Capital
- Introduction
- Case 3.1 New Tech (F): Where Will the Money Come from?
- Summary
- Discussion Questions
- Case 3.2 New Tech (G): Are They Worth an Investor’s Time?
- Case 3.3 Ecoturista
- Bibliography
4. Determining the Amount Needed: The Business Plan
- Introduction
- Case Study Groupon.com Financial Statements
- Summary
- Discussion Questions
- Case 4.1 New Tech (H)
- Case 4.2 Web Wired
- Appendix 4.1 Sample Business Plan Template
- Bibliography
- Resources
5. Valuation: Survey of Methods
- Introduction: Valuation Methodologies
- Asset-Based Valuation
- Market Multiples
- Case 5.1 (A) Woodridge Corporation
- Case 5.2 (B) Superior Plumbing Supply
- Capitalization Rates
- Excess Earnings Approach
- Case 5.3 The Fairweather Company
- Free Cash Flow Valuation
- Case 5.4 (B) Woodridge Corporation: Illustrating the Free Cash Flow Model
- Summary
- Discussion Questions
- Case 5.5 New Tech (I): What Is the Company Worth?
- Appendix 5.1 Review of Ratio Analysis
- Summary
- Bibliography
6. Venture Capital
- Introduction
- The Venture Capital Process
- The Term Sheet
- Summary
- Discussion Questions
- Case 6.1 New Tech (J): Getting Investors’ Attention
- Key Tasks
- To Do
- Appendix 6.1 Sample Term Sheet
- Capitalization of the Company
- Bibliography
7. Exit Strategies
- Importance of the Exit Strategy
- Valuation by Revenue Multiples
- Returns at Exit
- Likeliest Options for Exit
- Management Buyout
- Individual Buyers
- Going Public
- Initial Public Offering
- Alternative Methods of Going Public
- Summary
- Discussion Questions
- Bibliography
8. Anatomy of a Venture Funding
- Case 8.1 New Tech (K): Finding Compatible Investors
- Case 8.2 New Tech (L): Getting Ready
- Case 8.3 New Tech (M): Choosing an Offer
- Case 8.4 New Tech (N): Closing the Deal
9. Franchising
- Chapter Goals
- Case Study 9.1 Franchising the Neighborhood Restaurant
- Summary
- Discussion Questions
- Bibliography
- Additional Resources
10. Internal Financial Management
- Introduction
- Summary
- Discussion Questions
- Case 10.1 New Tech (O): Monthly Cash Budget
- Bibliography
11. Essentials of Risk Management
- Introduction
- Summary
- Discussion Questions
- Bibliography
- Additional Resources
12. Opportunities to Do Business and Raise Capital Globally
- The Global Mind-Set
- Basic Considerations
- A Few Words About Communications
- Finding and Working with International Partners
- Sources of Information and Assistance
- Testing the Market
- Raising Equity Capital from International Sources
- Valuation and Monitoring
- Exit Strategies
- Regional Considerations
- Summary
- Discussion Questions
- Bibliography