National Taiwan University
College of Management


High- and New-Tech Investment
(Spring Semester, 2002)


Collection of Readings
Module 1: Venture Capital
and Entrepreneurial Financing


Edited by
江炯聰教授
Prof. Jong-Tsong Chiang


High- and New-Tech Investment
(Spring Semester, 2002)

Module 1: Venture Capital and Entrepreneurial Financing

W1 Venture Capital Business
Zider, B. (1998), “How Venture Capital Works,” Harvard Business Review, Nov.-Dec., pp. 131-139.
Gompers, P. and J. Lerner (1999), “Introduction,” in The Venture Capital Cycle, The MIT Press, Cambridge, MA.
Smith, R.L. and J.K. Smith (2000), “Venture Capital,” in Entrepreneurial Finance, John Wiley & Sons, New York, NY.
Champion, D. and N.G. Carr (2000), “Starting Up in High Gear: An Interview with Venture Capitalist Vinod Khola,” Harvard Business Review, July-Aug., pp. 92-100.
Harmon, S. (1999), “The Firms,” in Zero Gravity, Bloomberg Press, Princeton, NJ.
Block, Z. and I.C. MacMillan (1993), “Venturing with Corporate Venture Capital,” in Corporate Venturing, Harvard Business School Press, Boston, MA.
Brody, P. and D. Ehrlich (1998), “Can Big Companies Become Successful Venture Capitalists?” The McKinsey Quarterly, No. 2, pp. 50-63.

W2 Entrepreneurship and New Ventures
Stevensen, H.H., M.J. Roberts, H.I. Grousbeck, and A.V. Bhide (1999), “A Perspective on Entrepreneurship,” “Developing Start-up Strategies,” in New Business Ventures and the Entrepreneur, Irwin McGraw-Hill, New York, NY.
Neshime, J.L. (1997), “The Process of Forming the Company,” in High Tech Startup, Saratoga, CA.
Hellweg, E. and S.Donahue, eds. (2000), “The Smart Way to Start an Internet Company,” Business 2.0, March, pp. 136-184.
The New York Staff (2000), “From the Cradle to the Grave,” Business 2.0, Aug. 8, pp. 186-187.
Kvinta, P. (2000), “Frogskins, Shekels, Moolah, Cash,” Smart Business, Aug., pp. 74-89.
Bell, C.G. (1991), “The People,” in High-Tech Ventures, Addison Wesley, Reading, MA.
Kawasaki, G. (2001), “The Top Ten Lies of Entrepreneurs,” Harvard Business Review, Jan., pp. 22-23.

W3 Capital Sources and Fundraising
Kuratko, D.F. and R.M. Hodgetts (1998), “Sources of Capital for Entrepreneurs,” in Entrepreneurship (4th ed.), The Drydon Press, Fort Worth, TX.
Stevensen, H.H., M.J. Roberts, H.I. Grousbeck, and A.V. Bhide (1999), “Attracting Stakeholders,” “Bootstrap Finance,” “Alternative Sources of Financing,” “Deal Structure,” “Securities Law and Private Financing,” in New Business Ventures and the Entrepreneur, Irwin McGraw-Hill, New York, NY.
Smith, R.L. and J.K. Smith (2000), “An Overview of New Venture Financing,” in Entrepreneurial Finance, John Wiley & Sons, New York, NY.
Gompers, P. and J. Lerner (1999), “Venture Capital Fundraising,” in The Venture Capital Cycle, The MIT Press, Cambridge, MA.

W4 Business Plan and Due Diligence
Stevensen, H.H., M.J. Roberts, H.I. Grousbeck, and A.V. Bhide (1999), “The Business Plan,” in New Business Ventures and the Entrepreneur, Irwin McGraw-Hill, New York, NY.
Neshime, J.L. (1997), “Ownership, Dilution, Negotiation, and Valuation,” in High Tech Startup, Saratoga, CA.
Bell, C.G. (1991), “Cash, Financeability, and Control,” in High-Tech Ventures, Addison Wesley, Reading, MA.
Bell, C.G. (1991), “The Business Plan: A Road Map and a Scorecard for the Future,” “The Bell-Mason Diagnostic,” in High-Tech Ventures, Addison Wesley, Reading, MA.
Block, Z. and I.C. MacMillan (1993), “Developing the Business Plan,” in Corporate Venturing, Harvard Business School Press, Boston, MA.
Gompers, P. and J. Lerner (1999), “Venture Capital Investing,” in The Venture Capital Cycle, The MIT Press, Cambridge, MA.
Clayton, J., B. Gambill, and D. Harned (1999), “The Curse of Too Much Capital: Building New Businesses in Large Corporations,” The McKinsey Quarterly, No. 3, pp. 48-59.

W5 Investment Exit and Public Offerings
Gompers, P. and J. Lerner (1999), “Exiting Venture Capital Investments,” in The Venture Capital Cycle, The MIT Press, Cambridge, MA.
Neshime, J.L. (1997), “Wall Street and the Initial Public Offering,” in High Tech Startup, Saratoga, CA.
Stevensen, H.H., M.J. Roberts, H.I. Grousbeck, and A.V. Bhide (1999), “Securities Law and Public Offerings,” in New Business Ventures and the Entrepreneur, Irwin McGraw-Hill, New York, NY.
Lipman, F.D. (2000), “The Advantages and Disadvantages of Going Public,” “Being Public,” “Rule 144 of the 1933 Act,” “The Story of an IPO,” in The Complete Going Public Handbook, Prima Venture, Roseville, CA.
Mendonca, L.T. and R. Smullin (2000), “Internet IPOs: An Insider’s Game,” The McKinsey Quarterly, No. 1, pp. 50-63.



National Taiwan University
College of Management


High- and New-Tech Investment
(Spring Semester, 2002)


Collection of Readings
Module 2: Industry Structure, Business Models and Value Patterns


Edited by
江炯聰教授
Prof. Jong-Tsong Chiang


High- and New-Tech Investment
(Spring Semester, 2002)

Module 2: Industry Structure, Business Models, and Value Patterns

W6 Industry Structure
Mowery, D.C. and R.R. Nelson (1999), “Explaining Industrial Leadership,” in D.C. Mowery and R.R. Nelson, eds., Sources of Industrial Leadership: Studies of Seven Industries, Cambridge University Press, Cambridge, UK.
Christensen, C.M. (1999), “Value Networks and the Impetus to Change,” “Disruptive Technologies: Catching the Wave,” “Finding New Markets for New and Disruptive Technologies,” “Patterns in the Evolution of Product Competition,” in Innovation and the General Manager, Irwin McGraw-Hill, Boston, MA.
Moore, G.A., P. Johnson and T. Kippola (1998), “How High-Tech Markets Develop,” “Understanding Gorilla Power: The Nature of Competitive Advantage,” “Mapping the Terrain: The Selection Process Begins,” “Stalking the Gorrilla: In Search of Hypergrowth Markets,” in The Gorilla Game, Harper Business, New York, NY.

W7 Value Configurations and Migration
Stabell, C.B. and O.D. Fjeldstad (1998), “Configuring Value for Competitive Advantage: On Chains, Shops, and Networks,” Strategic Management Journal, Vol. 19, pp. 413-437.
Hagel III, J. and M. Singer (1999), “Unbundling the Corporation,” Harvard Business Review, Mar.-Apr., pp. 133-141.
Slywotzky, A.J. and D.J. Morrison (1999), “Mega Patterns,” “Value Chain Patterns,” “Customer Patterns,” “Channel Patterns,” “Product Patterns,” “Knowledge Patterns,” “Organizational Patterns,” in Profit Patterns, Times Books, New York, NY.

W8 Entrepreneurial Alliances and Clusters
Roberts, E.B. and C.A. Berry (1985), “Entering New Businesses: Selecting Strategies for Success,” Sloan Management Review, Spring, pp. 541-555.
Porter, M.E. (1998), “Clusters and the New Economics of Competition,” Harvard Business Review, Nov.-Dec., pp. 77-90.
Sturgeon, T.J. (2000), “How Silicon Valley Came to Be,” in M. Kenney, ed., Understanding Silicon Valley, Stanford University Press, Stanford, CA.
Saxenian, A. (1991), “The Origins and Dynamics of Production Networks in Silicon Valley,” Research Policy, Vol. 20.

W9 Network Industries and e-Commerce
Shapiro, C. and H.R. Varian (1999), “Networks and Positive Feedback,” in Information Rules, Harvard Business School Press, Boston, MA..
Evans, P. and T.S. Wurster (1999), “Getting Real about Virtual Commerce,” Harvard Business Review, Nov.-Dec., pp. 84-94.
Bughin, J.R., S.J. Hasker, E.S.H. Segel, and M.P. Zeisser (2001), “What Went Wrong for Online Media,” The McKinsey Qarterly, No. 4.
Bughin, J.R., S.J. Hasker, E.S.H. Segel, and M.P. Zeisser (2001), “Reversing the Digital Slide,” The McKinsey Qarterly, No. 4, pp. 58-69.
Agrawal, V., L.D. Arjona, and R. Lemmens (2001), “E-Performance: The Path to Rational Exuberance,” The McKinsey Qarterly, No. 1, pp. 31-43.
Kemmler, T., M. Kubicova, R. Musslewhite, and R. Prezeau (2001), “E-Performance II: The Good, the Bad, and the Merely Average,” The McKinsey Qarterly, No. 4, pp. 58-69.

W10 New Life Sciences and Biotechnology
Enriquez, J. and R.A. Goldberg (2000), “Transforming Life, Transforming Business: The Life-Science Revolution,” Harvard Business Review, Mar.-Apr., pp. 96-104.
Robbins-Roth, C. (2000), “The Business of Biotech: Product Development and Financing,” “Biotech Stocks,” “Appendices A, B, C, D,” in From Alchemy to IPO, Perseus Publishing, Cambridge, MA.



National Taiwan University
College of Management


High- and New-Tech Investment
(Spring Semester, 2002)


Collection of Readings
Module 3: Valuation and Investment


Edited by
江炯聰教授
Prof. Jong-Tsong Chiang


High- and New-Tech Investment
(Spring Semester, 2002)

Module 3: Valuation and Investment

W11 Principles in Valuation
Copeland, T.E. and K.J. Ostrowski (1993), “The Hidden Value of Capital Efficiency,” The McKinsey Qarterly, No. 2.
Copeland, T.E. (1994), “Why Value Value?” The McKinsey Qarterly, No. 4, pp. 97-108.
Copeland, T.E. and P.T. Keenan (1998), “How Much Is Flexibility Worth?” The McKinsey Qarterly, No. 1, pp. 38-49.
Stevensen, H.H., M.J. Roberts, H.I. Grousbeck, and A.V. Bhide (1999), “Valuation Techniques,” “The Legal Protection of Intellectual Property,” in New Business Ventures and the Entrepreneur, Irwin McGraw-Hill, New York, NY.
Sahlman, W.A. (1999), “Aspects of Financial Contracting in Venture Capital,” in W.A. Sahlman, H.H. Stevenson, M.J. Roberts, and A. Bhide, eds., The Entrepreneurial Venture, Harvard Business School Press, Boston, MA.
Perkins, A.B. and M.C. Perkins (1999), “Appendix A: Calculating the Bubble,” “Appendix B: Bubble Calculation Methodology,” in The Internet Bubble, HarperBusiness, New York, NY.

W12 Valuation of New Ventures
Smith, R.L. and J.K. Smith (2000), “The Framework of New Venture Valuation,” “Valuation in Practice: The Investor’s Perspective,” “Valuation: The Entrepreneur’s Perspective,” in Entrepreneurial Finance, John Wiley & Sons, New York, NY.

W13 Valuation of Technology and Intangibles
DeLong, J.B. and T.P. Novak (2000), “Speculative Microeconomics for Tomorrow’s Economy,” in B. Kahin and H.R. Varian, eds., Internet Publishing and Beyond: The Economics of Digital Information and Intellectual Property, The MIT Press, Cambridge, MA.
Razgaitis, R. (1999), “Rights, Risks, and Psychology of Valuation and Pricing,” “Overview of Valuation Methods,” in Early-Stage Technologies: Valuation and Pricing, John Wiley & Sons, New York, NY.
Smith, G.V. and R.L. Parr (2000), “Valuation Principles and Techniques,” “Market and Cost Approaches,” “Income Approach – Defining the Economic Contribution,” “Income Approach – Capitalization of Economic Contribution,” “Income Approach – Economic Life,” “When Theory Meets Practice,” “Early-State Technology Valuation,” in Valuation of Intellectual Property and Intangible Assets (3rd ed.), John Wiley & Sons, New York, NY.

W14 Real Options
Luehrman, T.A. (1998), “Strategy as a Portfolio of Real Options,” Harvard Business Review, Sept.-Oct., pp. 89-99.
Luehrman, T.A. (1998), “Investment Opportunities as Real Options: Getting Started on the Numbers,” Harvard Business Review, July-Aug., pp. 51-67.
Amram, M. and N. Kulatilaka (1999), “The Real Options Potential,” “Valuing a Start-up,” “Investing in a Start-up,” “Developing a Drug,” “Writing a License,” in Real Options, Harvard Business School Press, Boston, MA.
Leslie, K.J. and M.P. Michaels (1997), “The Real Power of Real Options,” The McKinsey Qarterly, No. 3, pp. 97-108.
Copeland, T.E. and P.T. Keenan (1998), “Making Real Options Real,” The McKinsey Qarterly, No. 3, pp. 128-141.

W15 Investment Perspectives
Smithers, A. and S. Wright (2000), “The Good News and the Bad News About q,” “On q,” “q and the Long-Term Investor,” “q Versus the Competition,” in Valuing Wall Street, McGraw-Hill, New York, NY.
Shefrin, H. (2000), “Introduction,” “Heuristic-Driven Bias: The First Theme,” “Frame Dependence: The Second Theme,” “Inefficient Markets: The Third Theme,” in Beyond Greed and Fear, Harvard Business School Press, Boston, MA.
Schiller, R.J. (2000), “Preface,” “The Stock Market Level in Historical Perspective,” in Irrational Exuberance, Princeton University Press, Princeton, NJ.
Davis, S. and C. Meyer (1998), “From Income to Wealth,” “From Early to Late Information Age,” “From Barter to Bloomberg,” “Twenty Perfect Futures,” in Future Wealth, Harvard Business School Press, Boston, MA.

W16 The Investors
Ross, N. (2000), “Buffett’s Success Strategies: Building Real Wealth with Commonsense Investment Rules and Compound Returns,” “Graham’s Success Strategies: The Cornerstones of Investing,” “Fisher’s Success Strategies: Evaluating a Company’s People, Products, and Policies,” “Price’s Success Strategies: Think Like a Business Owner, but Be Aware that ‘Change Is the Investor’s Only Certainty,” “Templeton’s Success Strategies: Foresight, Patience, and the Contrarian View,” “How You Can Apply a Composite Version of the 3 Steps and Project Potential Investment Returns,” “How You Can Build and Preserve Real Wealth,” in Lessons from the Legends of Wall Street, Dearborn, Chicago, IL.
Gupta, U., ed. (2000), “Introduction,” “Robert Kagle (Benchmark Capital),” “Michelangelo Volpi (Cisco Systems),” “Ann Winblad (Hummer Winblad Venture Partners),” “Arthur Rock (Arthur Rock & Co.),” “Don Valentine (Sequoia Capital),” “Charles Waite (Greylock Management),” “Peter Brooke (Advent International),” “Joh Callaghan (@Ventures),” “Steve Lazarus (ARCH Venture Partners),” “John Doerr (Kleiner Perkins Caufield & Byers),” in Done Deals: Venture Capitalists Tell Their Stories, Harvard Business School Press, Boston, MA.
Hedberg, J., T.H.R. Roberts, and N.-L. Tu (2001), “Managing the Asset Manager,” The McKinsey Qarterly, No. 2, pp. 15-18.

W17 Conclusion and Students’ Presentation