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Lecture 13 - Securities TopicsCovered VentureCapital...

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Click to edit Master subtitle style  8/22/11 How Corporations issue  Securities Particularly public equity issues
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 8/22/11 Topics Covered Venture Capital The Initial Public Offering Underpricing of new issues Seasoned Issues by Public Companies Rights Issue Price response to rights issue announcements
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 8/22/11 Venture Capital Venture capitalists specialise in funding new ventures Success about 1 in 10 Venture funds return  about  17% per year ??? Success of a new firm is highly dependent on the effort &  incentives of firm managers Venture capital providers Take a seat on the start-up board & give advice Staged funding as targets for success are achieved . Often use securities convertible into equity Venture Capital Money invested to finance a new firm
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 8/22/11 Venture Capital 2.0 Value 2.0 Value 1.0 equity original Your 1.0 assets Other 1.0 capital venture from equity New 1.0 equity new from Cash Equity and s Liabilitie Assets ($mil) Sheet Balance Value Market" " Stage First
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 8/22/11 Venture Capital 14.0 Value 14.0 Value 5.0 equity original Your 9.0 assets Other 5.0 stage 1st from Equity 1.0 assets Fixed 4.0 stage 2nd from equity New 4.0 equity new from Cash Equity and s Liabilitie Assets ($mil) Sheet Balance Value Market" " Stage Second
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 8/22/11 Initial Public Offering Initial Public Offering (IPO)  - First  offering of stock to the general public.
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