Fintech and the Emergence of Next Gen Finance

What Is the Core Tech of a Company Worth? It Depends Who Is Asking!

Helena Malikova

Patents and brand names are only two examples of a broad category of disembodied assets from which firms derive revenue, referred to as “intangible assets.” Intangible assets pose a challenge for traditional financial valuation models for many reasons. Because intangible assets lack physicality, companies can easily transfer them internally from one subsidiary to another and among different countries. Aside from this difficulty in precisely determining their financial value, companies can use intangible assets as a profit-shifting tool in tax-planning schemes. In the course of their daily...

Unicorns, Cheshire cats, and the new dilemmas of entrepreneurial finance?

Martin Kenney
John Zysman

This essay examines the implications of the evolving environment for the formation and financing of new firms in the United States. After the crash of 2000, there was a regime change in new firm formation and the number of firms that exited through an initial public stock offering. This change was made possible by the decreased cost, increased speed, and ease of market entry due to availability of open source software, digital platforms, and cloud computing. This facilitated a proliferation of startups seeking to disrupt incumbent firms in a wide variety of business sectors. The...

Entrepreneurial Finance in the Platform Economy Era

Martin Kenney
John Zysman

Venture financing, a form of entrepreneurial finance, has played a central part in the story of the digital revolution. Indeed, Silicon Valley, the global center of the venture capital industry, draws its name from the substrate of the contemporary semiconductor, which is the computational engine for all digital products. The continuing performance improvements characteristic of Moore’s Law provided ever new potentialities for new generations of startups. While improvement in processing power was the core engine for this venture capital-financed entrepreneurship, the new firms were not...