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Entrepreneurial Finance Master TEW Entrepreneurial Finance Smvt boek uickprinter Koningstraat 13 2000 Antwerpen Q www.quickprinter.be 183 6,00 € Online samenvattingen kopen via www.quickprintershop.be SAMENVATTING ENTREPRENEURIAL FINANCE (BOEK) Contents 1.2 What is entrepreneurial finance? ................................................................................................ 8 1.3 Differences and similarities between corporate finance and entrepreneurial finance ............. 8 1.4 Stages of venture development and sources of financing........................................................ 10 1.4.1 Seed stage ......................................................................................................................... 10 1.4.2 Start-up stage .................................................................................................................... 11 1.4.3 Growth stage ..................................................................................................................... 11 1.4.4 Maturity stage ................................................................................................................... 11 2.1 Definition and origination of the early funding sources ........................................................... 14 2.1.1 Pre-market funding ........................................................................................................... 14 2.1.2 Definition of the early market sources ............................................................................. 14 2.1.3 Distinct differences ........................................................................................................... 15 2.1.4 Key drivers in development .............................................................................................. 15 2.2 Incubators ................................................................................................................................. 15 2.2.1 Forms ................................................................................................................................ 15 2.2.2 Process .............................................................................................................................. 16 2.2.3 Benefits and concerns ....................................................................................................... 16 2.3 Accelerators .............................................................................................................................. 17 2.3.1 Forms ................................................................................................................................ 17 2.3.2 Process .............................................................................................................................. 17 2.3.3 Benefits and concerns ....................................................................................................... 18 2.4 Later-stage accelerators ............................................................................................................ 19 2.4.1 Forms ................................................................................................................................ 19 2.4.2 Process .............................................................................................................................. 19 2.4.3 Benefits and concerns ....................................................................................................... 19 2.5 Crowdfunding............................................................................................................................ 20 2.5.1 Forms ................................................................................................................................ 20 2.5.2 Process .............................................................................................................................. 21 2.5.3 Benefits and concerns ....................................................................................................... 21 2.6 Market proof of these early sources of funding in the success of ventures ............................ 22 2.6.1 Challenges of measuring contribution .............................................................................. 22 2.6.2 Arguments in favour of early sources of funding ............................................................. 22 3.1 Business angels and their market positioning .......................................................................... 24 3.2 Business angels: definition and profile ..................................................................................... 24 3.3 The changing structure of the angel market............................................................................. 26 3.4 The investment process ............................................................................................................ 27 1 Bron: Alemany, L. & Andreoli, J.J. (2018). Entrepreneurial Finance. Cambridge, UK: Cambridge University Press 3.4.1 Deal origination ................................................................................................................. 28 3.4.2 Deal evaluation ................................................................................................................. 29 3.4.3 Negotiation and contracting ............................................................................................. 30 3.4.4 Post-investment involvement ........................................................................................... 31 3.4.5 Harvesting ......................................................................................................................... 32 4.1 Venture capital, private equity and corporate venture capital: is it all the same? .................. 33 4.1.1 Venture capital .................................................................................................................. 33 4.1.2 Private equity .................................................................................................................... 33 4.1.3 Corporate venture capital ................................................................................................. 34 4.2 The virtuous circle of venture capital ....................................................................................... 34 4.2.1 Stage 1: fundraising........................................................................................................... 35 4.2.2 Stage 2: investing .............................................................................................................. 36 Individual company selection ....................................................................................................... 36 Portfolio management .................................................................................................................. 37 4.2.3 Stage 3: monitoring, adding value and growing the portfolio .......................................... 37 4.2.4 Stage 4: exiting (or love is not forever) ............................................................................. 38 4.3 Who is behind these venture capital and private equity funds? .............................................. 39 4.4 What does a fund look like? Legal structure............................................................................. 40 4.5 How do fund managers and fund investors make money? ...................................................... 40 4.6 Trends in European venture capital .......................................................................................... 41 4.6.1 Fundraising ........................................................................................................................ 41 4.6.2 Investments ....................................................................................................................... 41 4.6.3 Disvestment ...................................................................................................................... 41 4.6.4 European venture capital activity in the global context ................................................... 41 4.6.5 Qualitative trends. Sings for a better future ..................................................................... 42 6.1 A review of the principal-agent problem .................................................................................. 43 6.1.1 Asymmetric information ................................................................................................... 43 6.1.2 Adverse selection .............................................................................................................. 44 6.1.3 Opportunistic and overoptimistic behaviour .................................................................... 44 6.2 Remedies for the principal-agent problem: pre-contractual .................................................... 44 6.2.1 Signalling (entrepreneur) .................................................................................................. 44 6.2.2 Self-selection (investor) .................................................................................................... 45 6.3 Remedies for the principal-agent problem: post-contractual .................................................. 45 6.3.1 Bonding (entrepreneur) .................................................................................................... 45 6.3.2 Monitoring (investor) .......................................................................................................
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