We show that mutual funds report their junior stakes in startups at 43% higher valuation than model fair values that consider multi-tier capital structures of startups. The latest-issued and most senior security is worth 48% per share than junior securities held by mutual funds, implying that...

We show that mutual funds report their junior stakes in startups at 43% higher valuation than model fair values that consider multi-tier capital structures of startups. The latest-issued and most senior security is worth 48% per share than junior securities held by mutual funds, implying that...

Introduction -- 1. Look Around You -- 2. Guest Chapter: Founder's Guide Through the Legal Jungle -- 3. Setting Goals -- 4. Guest Chapter: On the Franchise Model for Startups -- 5. Getting Money -- 6. Guest Chapter: On Startup Valuations (and Other Dark Stories) -- 7. Your Company is the Average...

Entrepreneurship is essential to job creation and to productivity growth and therefore is an important matter for government policy. However, policymakers face a difficult challenge because successful growth for a few firms-which cannot easily be identified in advance-is accompanied by...

We argue two alternative routes that lead entrepreneurial start-ups to acquisition outcomes instead of liquidation. On one hand, acquisitions can come about through the control route with external financers such as venture capitalists (VCs). VCs take control through their board seats along with...