Entrepreneurial Finance and Accounting for High-Tech Companies [Hardcover]

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 subjectsfrom risk analysis to stock incentive programs for founders and key employeesfor 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.

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!