If you're interested in learning more, I'd strongly recommend "Venture Capital and the Finance of Innovation" by Andrew Metric and Ayako Yasuda. I used this bo

If you're interested in learning more, I'd strongly recommend "Venture Capital and the Finance of Innovation" by Andrew Metric and Ayako Yasuda. I used this book in a VC finance class (taught by a student of the prof in this article, incidentally) and found it very readable and helpful for understanding option valuation. Then again, when I was interviewing, companies wouldn't tell me anything about share pricing or the associated covenants, so it was kind of a wash from an employee perspective.