Richard Smith is Professor of Financial Management at the Peter F. Ducker Graduate School of Management, Claremont
Graduate University, where he teaches courses on new venture finance, and strategic risk management. He also is
Director of the Venture Finance Institute at Claremont. Professor Smith has served on several boards that are responsible
for investing on behalf of pension funds and university endorsements, and has consulted extensively for venture
capitalists, business angels, entrepreneurs, and government, on matters involving investment, valuation, financial
contracting, securities litigation, and antitrust.
Smith, Janet Kiholm : Claremont McKenna College
Janet Kiholm Smith is the Von Tobel Professor of Economics at Claremont McKenna College, where she teaches course
on the economics of strategy and industrial organization. She currently serves on the Colleges investment committee
and consults on matters related to working capital management, the economics of contracts, and antitrust. She is
the author of numerous journal articles, including publications in Journal of Legal Studies, Journal of Finance,
Journal of Corporate Finance, Journal of Financial and Quantitative Analysis, Journal of Law and Economics,
and Journal of Law, Economics and Organization.
Summary
Smith and Smith apply current thinking in the areas of valuation, real options, and the economics of contracts
to new venture decision making. Readers learn to think of new ventures as portfolios of real options, value financial
claims of the entrepreneur and venture capital investors, and structure financial contracts in light of new venture
information problems. They also learn to use simulation and scenario analysis to evaluate the implications of uncertainty
and financial decisions.
Table of Contents
PART 1. GETTING STARTED.
Chapter 1. Introduction.
Chapter 2. An Overview of New Venture Financing.
PART 2. FINANCIAL ASPECTS OF STRATEGIC AND BUSINESS PLANNING.
Chapter 3. The Business Plan.
Chapter 4. New Venture Strategy.
Chapter 5. Developing Business Strategy Using Simulation.
Chapter 8. The Framework of New Venture Valuation.
Chapter 9. Valuation in Practice: The Investor's Perspective.
Chapter 10. Valuation: The Entrepreneur's Perspective.
PART 5. ORGANIZATIONAL DESIGN AND FINANCIAL CONTRACTING.
Chapter 11. Financial Contracting with Symmetric Information.
Chapter 12. Dealing with Information and Inventive Problems.
Chapter 13. Financial Contracting.
