Entrepreneurship in Biotechnology Columbia University Graduate School of Arts and Sciences BIOT 4180 Columbia University GSAS BIOT 4180.

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Entrepreneurship in Biotechnology Columbia University Graduate School of Arts and Sciences BIOT 4180 Columbia University GSAS BIOT 4180

Week 6 More Accounting and Finance Columbia University GSAS BIOT 4180

agenda Homework Review discounted cash flow Financial statement diagnostics Debt Equity Basic equity sales

agenda Homework Review discounted cash flow Financial statement diagnostics Debt Equity Basic equity sales

Discounted Cash Flow Columbia University GSAS BIOT 4180

agenda Homework Review discounted cash flow Financial statement diagnostics Debt Equity Basic equity sales

questions Can the company pay its bills? How profitable is the product(s)? – How much of the company would I own if I buy stock? – What are my options worth? What is the cash burn? Can the company raise money?

questions Can the company pay its bills? How profitable is the product(s)? How much of the company would I own if I buy stock? What are my options worth? What is the cash burn? Can the company raise money? Balance sheet: working capital Income statement: gross margin Balance sheet: capital structure Cash burn: cash flow statement Cash flows (debt), cap structure (equity)

Balance sheet Columbia University GSAS BIOT 4180

questions Can the company pay its bills? How profitable is the product(s)? How much of the company would I own if I buy stock? What are my options worth? What is the cash burn? Can the company raise money? Balance sheet: working capital Income statement: gross margin Balance sheet: capital structure Cash burn: cash flow statement Cash flows (debt), cap structure (equity)

Income Statement with product sales Columbia University GSAS BIOT 4180

questions Can the company pay its bills? How profitable is the product(s)? How much of the company would I own if I buy stock? What are my options worth? What is the cash burn? Can the company raise money? Balance sheet: working capital Income statement: gross margin Balance sheet: capital structure Cash burn: cash flow statement Cash flows (debt), cap structure (equity)

Simple Cap Structure Columbia University GSAS BIOT 4180

Complex cap structure Columbia University GSAS BIOT 4180

questions Can the company pay its bills? How profitable is the product(s)? How much of the company would I own if I buy stock? What is the cash burn? Can the company raise money? Balance sheet: working capital Income statement: gross margin Balance sheet: capital structure Cash burn: cash flow statement Cash flows (debt), cap structure (equity)

Cash Flow Statement Columbia University GSAS BIOT 4180

questions Can the company pay its bills? How profitable is the product(s)? How much of the company would I own if I buy stock? What is the cash burn? Can the company raise money? Balance sheet: working capital Income statement: gross margin Balance sheet: capital structure Cash burn: cash flow statement Cash flows (debt), cap structure (equity)

agenda Homework Review discounted cash flow Financial statement diagnostics Debt, equity and convertible debt Basics of equity sales

agenda Homework Review discounted cash flow Financial statement diagnostics Debt Equity Basics of equity sales