Marco Da Rin - Fundamentals of Entrepreneurial Finance

Advance Praise for Fundamentals of Entrepreneurial Finance

Da Rin and Hellmann masterfully combine academic and case studies to analyze how entrepreneurs with ideas and financiers with capital can strike mutually advantageous deals that power societys future innovations. The result is a lucid and comprehensive book that will be an invaluable resource for anyone with an interest in this topic.

Oliver Hart, Department of Economics, Harvard University, 2016 Nobel laureate in economics

While getting to scale fastest in a global economy can take significant capital, money has always been just one part of venture financing. Using clear frameworks that show how venture financing really works, Da Rin and Hellmann point out how the networks of talent and expertise that investors can help entrepreneurs access are critical to a start-ups success. This is especially true for big, ambitious, and even contrarian ventures. So if youre an entrepreneur ready to pursue a truly bold idea, be sure to read this book.

Reid Hoffman, Co-founder of LinkedIn and co-author of Blitzscaling

This textbook achieves a wonderful balance in providing students with a broad and insightful introduction to entrepreneurial finance; but at the same time opens up many avenues for interested students to pursue the material more deeply. The authors draw from a wealth of intriguing examples to make the material come to life and their in-depth knowledge of the subject matter shines through at every turn. A great resource for any student of entrepreneurial finance as well as a lay audience that wants to understand this fast growing part of finance better.

Antoinette Schoar, Michael M. Koerner (1949) Professor of Finance and Entrepreneurship at the MIT Sloan School of Management.

This book provides the foundational knowledge MBAs need to master entrepreneurial finance. The authors are leading academics, trained at Stanford, who taught and researched in many countries. They understand not only how Silicon Valley works, but also how venture financing is a global phenomenon.

Ilya A. Strebulaev, Professor of Finance, Stanford Graduate School of Business

The financing of start-ups is crucial for their very survival and development, yet it is often thought of as a narrow technical issue. It is not! Da Rin and Hellmann build a comprehensive framework that helps the reader understand the entire entrepreneurial financing process, and how entrepreneurs and investors navigate through it. I highly recommend this book to anyone who wants to understand the fuel that fires the modern innovation economy, and especially to those venturing into it.

Eugene Kandel, CEO of Start-Up Nation Central, and Professor of Economics and Finance at the Hebrew University of Jerusalem

This book will help students from different backgrounds understand how venture financing works. The authors masterfully combine insights from finance, economics, strategic management, organizational behavior, legal studies and other academic fields. They introduce many new practical tools and present materials in a direct and engaging style.

David Hsu, Professor of Management, Wharton Business School

Da Rin and Hellmann have crafted a seminal contribution to the teaching of Entrepreneurial Finance. The issues addressed in their book are critical for any entrepreneur who is considering starting a company and raising capital. The material is applicable to any industry or country context making the book a must read. Furthermore, the lessons are rigorous yet practical and allow an entrepreneur to put the recommendations into action. The book will become a staple not only in the classroom, but on the shelf of every aspiring entrepreneur.

Paul Gompers, Eugene Holman Professor of Business Administration, Harvard Business School

The financing of start-ups has become a global phenomenon with ambitious start-ups being funded by venture investors across many countries, including China. This is the first book to provide a truly global perspective on entrepreneurial finance. Da Rin and Hellmann build their framework step-by-step from core academic concepts, making the material accessible and engaging to the students at all levels around the world.

Yingyi Qian, Distinguished Professor and former Dean, School of Economics and Management, Tsinghua University

Having taught entrepreneurial finance for many years, one of the problems has been to find an appropriate textbook, which both provides practical skills and at the same time is grounded in modern research. I am happy to see that this problem has now been solved. Da Rin and Hellmann are two of the most well-known and accomplished researchers in this area. They have managed to write a comprehensible, accessible, and up-to-date textbook, which I predict will become the standard reference for courses in entrepreneurial finance and venture capital for years to come.

Per Strmberg, SSE Centennial Professor of Finance and Private Equity, Swedish House of Finance

Oxford University Press is a department of the University of Oxford. It furthers the Universitys objective of excellence in research, scholarship, and education by publishing worldwide. Oxford is a registered trade mark of Oxford University Press in the UK and certain other countries.

Published in the United States of America by Oxford University Press

198 Madison Avenue, New York, NY 10016, United States of America.

Oxford University Press 2020

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without the prior permission in writing of Oxford University Press, or as expressly permitted by law, by license, or under terms agreed with the appropriate reproduction rights organization. Inquiries concerning reproduction outside the scope of the above should be sent to the Rights Department, Oxford University Press, at the address above.

You must not circulate this work in any other form and you must impose this same condition on any acquirer.

CIP data is on file at the Library of Congress

ISBN 9780199744756

eISBN 9780190941567

Dr. Marco Da Rin is an Associate Professor of Finance at Tilburg University, and previously held positions at the London School of Economics, Bocconi University (Milano, Italy), at the University of Torino, and the Universitat Autnoma de Barcelona. His research focuses on entrepreneurial finance, venture capital, private equity, and public policy for entrepreneurship. His academic articles have been published in leading scholarly journals and have been covered by the business press, including The Economist, Forbes.com, venture capital and private equity online magazines, and national business papers. He has been a consultant to several international organizations including the European Commission, the OECD, and the United Nations, as well as regional governments and private companies. He has advised and contributed to several start-ups.

Dr. Thomas Hellmann is the DP World Professor of Entrepreneurship and Innovation at the Sad School of Business, University of Oxford. He previously was faculty at the Stanford Graduate School of Business and the University of British Columbia (Vancouver, Canada), as well as holding visiting positions at Harvard Business School and Wharton. He is a pioneer of the academic literature on entrepreneurial finance, with numerous scholarly contributions to venture capital, entrepreneurship, innovation, and public policy. His consulting clients include the World Economic Forum, Barclays Bank, and countless start-up companies. He is the founder of the NBER Entrepreneurship Research Boot Camp. He serves as the Academic Advisor of the Oxford Foundry, and the Academic Director of SBS Entrepreneurship Centre. Most recently he led the launch of the Creative Destruction Lab at Oxford.