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Prototyping Growth in Technology Ventures: A Practical Approach
Author(s) -
Pereiro Luis E.
Publication year - 2016
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.22207
Subject(s) - parameterized complexity , new ventures , business , venture capital , economics , computer science , industrial organization , finance , entrepreneurship , algorithm
A prototype is a plausible growth model that can be parameterized precisely in terms of time and money. Prototypes can be used to determine how much money is needed to fund a start‐up, how much the venture will be worth at exit time, and in which way its ownership should be split between entrepreneur and investor. This article explains how prototypes are constructed and illustrates how they are used in the financing planning of technology ventures. © 2016 Wiley Periodicals, Inc.