venture capital ipo

8/2/2019 Venture Capital IPO

http://slidepdf.com/reader/full/venture-capital-ipo 1/10

Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin

14 - 1

Fundamentals of

Corporate

Finance

Fifth Edition

McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved

Venture Capital, IPOs,

and Seasoned Offerings




14 - 2

Topics Covered

Ventur e Capital

The Initial Public Off ering

The Underwriters General Cash Off ers by Public Companies

The Private Placement




14 - 3

Venture Capital




14 - 4

Venture Capital

Since success of a new firm is highly de pendent

on the effort of the m______, r estrictions ar e

placed on management by the ventur e capitalcompany and funds ar e usually dispersed in

s_____, after a certain level of s_____ is

achieved.

Venture Capital

Money invested to finance a n__ firm




14 - 5

Venture Capital

1.0Value1.0Value

0.5equityoriginalYour 0.5assetsOther

0.5capitalventur efromequity New0.5equitynewfromCash

EquityandsLiabilitieAssets

(mil)SheetBalanceValueMark etStageFirst




14 - 6

Venture Capital

3.0Value3.0Value

1.0equityoriginalYour

1.0stage1stfromEquity2.0assetsOther

1.0stage2ndfromequity New1.0equitynewfromCash

EquityandsLiabilitieAssets

(mil)SheetBalanceValueMark etStageSecond




14 - 8

Initial Public Offering




14 - 9

General Cash Offers

Seasoned Offering ± S ___ of securities by a firm

that is alr eady publicly traded.

General Cash Offer - Sale of securities o___ to all

investors by an alr eady public company.

Shelf Registration - A procedur e that allows firms

to file one r egistration statement for s_____ issues

of the same security.

Private Placement - Sale of securities to a l_____

number of investors without a public off ering.




4 - 10

Rights Issue

Rights Issue - Issue of securities off er ed only to

c_____ stockholders.

venture capital ipo

Documents