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1. Introduction
2. Contingent contracting
3. Examples of contingencies (1)
4. Examples of contingencies (2)
5. Examples of companies with stage financing (2)
6. The use of convertible securities
7. Important benefits of using convertible securities
8. Risk-allocation using debt with warrants
9. Cash flow from project over time
10. How much stock will the V.C take in the firm?
11. Consider debt with warrants financing
12. Cash flow to V.C (from bond alone)
13. Remaining value to be provided to V.C
14. Calculating the fraction of equity (1)
15. Calculating the fraction of equity (2)
16. Summary: total cash flow to V.C
17. Bond plus warrants: split-up of present value
18. Conclusions (1)
19. Conclusions (2)

Topics Covered

• Contingencies in venture capital (VC) contracting
• The use and benefits of convertible securities
• Risk allocation using convertible debt/debt with warrants
• Calculating cash flow to the VC from using convertible debts

Links

Series:

• Corporate Financing

Categories:

• Finance, Accounting & Economics

Talk Citation

Publication History

• Published on November 6, 2014