An invaluable resource for current and aspiring venture capitalists, Venture Capital and the Finance of Innovation provides an in-depth understanding of the tools and models needed to succeed in this competitive and highly fluid business environment. Building on a comprehensive introduction to fundamental financial and investment principles, the text guides the reader toward a robust skill set using total and partial valuation models, risk and reward, strategic finance, and other concepts central to any venture capital investment. Cutting-edge predictive and analytical software is presented in conjunction with sophisticated modeling and the latest industry data, illustrating the market’s enormous shift over the last two decades.  Engaging discussions on topics ranging from valuation models to strategic decision-making help develop the successful investor’s critical knowledge base, while building a solid foundation of fundamental VC concepts. Accessible, comprehensive, and assuming only basic knowledge of venture capital, this text offers essential guidance for successful VC investing in any market.