- Provide students with a broad understanding of concepts in entrepreneurial finance and explain special aspects of funding new ventures as opposed to financing of mature companies considered in standard corporate finance theory
- Provide students with a framework for making decisions about financing of a new venture from entrepreneur’s and investor’s points
- Explain the difference between types of venture investors and institutions involved in financing of new ventures
- Prepare students to make effective presentations of investment opportunities from entrepreneur’s and investor’s side
- Analyze and compare financing choices for new ventures, including types and sources of financing
- Apply methods of valuation for a new venture
- Evaluate challenges and discuss risks facing entrepreneurs in developed and developing markets
- Make effective and well-timed decisions about new venture financing and harvesting
- Develop communication and presentation skills for capital raising, formulating business plan, strategies
- Identify exit strategies and explain venture harvesting process
- 1Introduction. Entrepreneurship: from idea to business. Identification of entrepreneurial opportunities. Innovative industries. Technology entrepreneurship.
- 2Entrepreneurial characteristics. Corporate governance and entrepreneurial firms
- 3New venture life cycle. Financing sources at different stages of life cycle. Business plan development.
- 4Financing options of a new venture. Financing choices. Assessing financial needs. Financial capital costs.
- 5New venture valuation. Real option valuation. Entrepreneur’s and venture capital fund’s perspective on valuation.
- 6Venture capital and private equity finance: organization, investment selection. Government venture funds. Guest speakers.
- 7Deal terms. Incentive problems, information problems. Contract design. Exit options. Turnaround strategies.
- 8Recent research: crowdfunding, angel and venture fund finance and debt for entrepreneurs. Future of entrepreneurial finance.
- Case in class - Group work
- Homework - business plan preparation
- Homework - valuation exercise
- Homework - written case
- Group project - pitching an idea of a new venture
- Interim assessment (2 module)0.15 * Case in class - Group work + 0.4 * Group project - pitching an idea of a new venture + 0.15 * Homework - business plan preparation + 0.15 * Homework - valuation exercise + 0.15 * Homework - written case
- Alhabeeb, M. J. (2015). Entrepreneurial Finance : Fundamentals of Financial Planning and Management for Small Business. Hoboken, New Jersey: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=957003
- Entrepreneurial finance, Smith, R. L., Smith, J. K., 2004
- Entrepreneurial finance, Leach J.C., Melicher R.W., 2006
- Research handbook on entrepreneurial finance, Hussain, J. G., 2017
- Venture capital and the finance of innovation, Metrick, A., Yasuda, A., 2011