“BEST PRACTICE VENTURE CAPITAL – Principles, Tools and Approaches for Investment, Strategy and Policy”

Lennart Ohlsson has now published his 330 pp. study useful for investors, venture founders and management, university students and policy-makers. It is based on his thorough research, his own practical experiences as well as many interviews and discussions with specialists in the San Francisco Bay Area. It is a study of best practices in a field where venture investors and founders interface and interact.

The study has three parts. Part I presents pre-emptive methods to handle extreme upside potentials and downside risks in any kind of venture. Introducing some tools for analysis and decision-making, it shows how investors may control downside uncertainties and risks as well as upside opportunities and chances.
Part II focuses on first mover ventures. It shows with a number of innovative concepts and tools how first mover advantages can be more systematically analysed for start-ups differing in technology and market characteristics. Furthermore, it looks at how optimisation of investors´ yields can be obtained via the optimisation of entrepreneurial rents by venture founders and managements. For this latter purpose, the study introduces the concept optimal strategy path. The path is depicted by five strategy path properties. Each property is characterised by at least one visualised indicator. The study clarifies why and how a first mover described by a set of technology and market features must emphasise one or a couple of properties in designing its optimal strategy path. Otherwise, entrepreneurial rent cannot be optimised to the detriment of founders as well as investors.
Part III introduces three normative issues, namely the design of a) fair start-up valuations, b) fair deal designs and c) best practice policy environments. Principle-based solutions are presented for reaching fairness in pre-money valuations and deal designs while legal and tax institutions are suggested to be cornerstones for a best practice policy environment.


Chapters:

Chapter 1: Introduction

PART I: UPSIDE POTENTIAL, DOWNSIDE RISK AND THE OPTIMISATION OF ENTREPRENEURIAL RENT

Chapter 2: The Venture – From Abstract Idea to Viable Business

Chapter 3: Pre-Empting Downside Risks

Chapter 4: Setting the Stage for Optimizing Upside Potentials        
                 
PART II: FIRST MOVER ADVANTAGES AND STRATEGIES

Chapter 5: First Mover Advantages and Optimal Strategy Paths

Chapter 6: Single Technology First Movers

Chapter 7:  Generic Technology First Movers - Market Based Advantages and Strategies

Chapter 8: Single Technology First Movers with Multiple Technology Leaps

Chapter 9: Multi-technology First Movers with One or Two Technology Leaps

Chapter 10: Towards Strategies for the Growth Stage and Beyond
                 
PART III: BEST PRACTICE SOLUTIONS TO THREE NORMATIVE ISSUES

Chapter 11: Valuations, Fair Deals and Policies for Innovative Start-Ups in Frontier Economies



Book price:
SEK 490 incl. value added tax when ordering from bookstore or via Books on Demand. Reduced price is available for students (and for others ordering at least five books at a time).

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