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Entrepreneurial Finance Technical Note Series

Foundations for Angel, Venture, and Private Capital Investment

Eighteen practitioner-oriented technical notes covering the full arc of early-stage company finance, from the financing gap through to exit planning.

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About

About

About the Book

The Entrepreneurial Finance Technical Note Series is a practitioner-oriented reference covering the full arc of early-stage company finance — from the financing gap that confronts pre-revenue founders through to exit planning and succession.

The series is written for senior undergraduate and MBA students who need to evaluate real investment opportunities, not just study them in the abstract. Each note is built around the analytical frameworks that angel investors, venture capitalists, and founders actually use: revenue forecasting and unit economics, early-stage valuation methods, term sheet mechanics, cap table construction, due diligence methodology, credit analysis, and the Canadian regulatory and tax landscape governing private capital.

Eighteen notes cover the full capital stack — angel and venture equity, convertible instruments, bank lending, mezzanine financing, commercial real estate debt — along with the people-side disciplines of founder assessment, deal structuring, financial distress, and entrepreneur transition planning. Companion notes addressing the specialized financing structures of SaaS and biotech companies are forthcoming.

Originally developed for use in BU403/613 Entrepreneurial Finance at Wilfrid Laurier University and refined over more than a decade of classroom use, the series is designed to serve any course that prepares students to participate in early-stage deal evaluation.

Author

About the Author

Bruce Everitt

Bruce Everitt is a Professor of Finance at Wilfrid Laurier University's Lazaridis School of Business & Economics, where he has taught Entrepreneurial Finance since 2013. He holds the CFA and Chartered Director (C.Dir) designations and a Master of Finance degree. Before entering academia, he spent over twenty years in corporate finance at RBC and Sun Life Financial. Bruce leads the Laurier Startup Fund, serves on the Golden Triangle Angel Network's selection and office hours committees, and has advised three early-stage companies, including one that reached a public listing. The Entrepreneurial Finance Technical Note Series draws on more than a decade of preparing students to evaluate live deals alongside active angel investors.

Contents

Table of Contents

  1. The Entrepreneurial Finance: Lifecycle, Financing Gap, and Capital Stack
  2. The Investor's Perspective: Angels, Risk, and the Deal Flow Ecosystem
  3. Venture Capital: Fund Structure, Valuation Mechanics, and the Entrepreneur's Strategic Calculus
  4. Revenue Forecasting Part I: Methodology, Market Definition, and Competitive Positioning
  5. Revenue Forecasting Part II: Model Mechanics, Funnel Analysis, and Unit Economics
  6. Financial Forecasting: Building the Integrated Model
  7. Time Value of Money and Discount Rate Estimation: WACC, Beta, and the Cost of Capital
  8. Valuing Early-Stage Companies: Methods, Comparables, and the Discipline of Defensible Assumptions
  9. Assessing Founders and Management Teams
  10. Due Diligence: Process, Questions, and the Craft of Probing Inquiry
  11. Raising Private Capital in Canada: The Regulatory Framework for Exempt Distributions
  12. Founders' Equity Splits, Vesting, and Cap Table Mechanics
  13. Intellectual Property as a Strategic and Financial Asset
  14. Term Sheets: Instruments, Convertibles, Priced Round Economics, Liquidation Preferences, Anti-Dilution, Governance, and the Exit Waterfall
  15. How Banks Assess Credit Risk: The Five Cs, Loan Structures, and the Debt-Equity Spectrum
  16. Commercial Real Estate Lending: Property Valuation, NOI Analysis, and Mortgage Underwriting
  17. Financial Distress: Early Warning Signs, Restructuring, and Canadian Insolvency Law
  18. Entrepreneur Transition Planning: Succession Pathways, Estate Freezes, and the Lifetime Capital Gains Exemption

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