ACKNOWLEDGMENTS.

CONTENTS.

PART I: VC BASICS.

CHAPTER 1: THE VC INDUSTRY.

CHAPTER 2: VC PLAYERS.

CHAPTER 3: VC RETURNS.

CHAPTER 4: THE COST OF VENTURE CAPITAL.

CHAPTER 5: THE BEST VCs.

CHAPTER 6: VC AROUND THE WORLD.

PART II: TOTAL VALUATION.

CHAPTER 7: THE ANALYSIS OF VC INVESTMENTS.

CHAPTER 8: TERM SHEETS.

CHAPTER 9: PREFERRED STOCK.

CHAPTER 10: THE VC METHOD.

CHAPTER 11: DISCOUNTED-CASH-FLOW ANALYSIS OF GROWTH COMPANIES.

CHAPTER 12: COMPARABLES ANALYSIS.

PART III: PARTIAL VALUATION.

CHAPTER 13: OPTION PRICING.

CHAPTER 14: THE VALUATION OF PREFERRED STOCK.

CHAPTER 15: LATER-ROUND INVESTMENTS.

CHAPTER 16: PARTICIPATING CONVERTIBLE PREFERRED STOCK.

CHAPTER 17: IMPLIED VALUATION.

CHAPTER 18: COMPLEX STRUCTURES.

PART IV: THE FINANCE OF INNOVATION.

CHAPTER 19: R&D FINANCE.

CHAPTER 20: MONTE CARLO SIMULATION.

CHAPTER 21: REAL OPTIONS.

CHAPTER 22 BINOMIAL TREES.

CHAPTER 23 GAME THEORY.

CHAPTER 24 R&D VALUATION.

APPENDIX A INFORMATION SOURCES FOR VENTURE CAPITAL.

APPENDIX B SAMPLE TERM SHEET.

APPENDIX C THE VCFI SPREADSHEETS.

APPENDIX D GUIDE TO CRYSTAL BALL.

GLOSSARY.

INDEX.