Entrepeneurial Finance and Venture Capital
Code
2220
Academic unit
null
Department
null
Credits
null
Teacher in charge
Paulo Soares de Pinho
Teaching language
Objectives
This course is devoted to new venture financing and to venture capital. It aims to prepare students to analyse high-growth early-stage ventures from a financiers perspective. Our goal is to explore why new venture financing differs from traditional corporate finance, to analyse different possible sources of funds at successive stages, understand the characteristics of successful new ventures, to have a critical perspective of business plans and to understand value drivers and valuation techniques for risky new ventures.
Additionally, we aim to understand how the venture capital industry works and the special characteristics of its investments, including techniques to align interests between the parties, the special forms of securities involved and the complex term sheets associated with venture capital financial contracting.
Prerequisites
Subject matter
Bibliography
Main textbook:
-Smith, Janet, Bliss, Richard and Smith, Richard Entrepreneurial Finance: Strategy, Valuation and Deal Structure, Stanford University Press, 2011.
Other relevant books:
-Arundale, Keith Raising Venture Capital in Europe, Kogan Page, 2007.
-Bussgang, Jeffrey Mastering the VC Game, Portfolio, 2010.
-Carver, Lorenzo Venture Capital Valuation, Wiley, 2012.
-Vinturella, John and Erickson, Suzanne, Raising Entrepreneurial Capital, Elsevier, 2004.
-Wilmerding, Alex Term Sheets & Valuations, Aspatore Books, 2006.
Teaching method
Students are expected to:
Attend classes and actively participate in discussions
Prepare the analysis of companies making presentations in class
Get actively involved in group analysis of the case-studies
Produce presentations on case-studies
Make oral presentations of their reports
Participate (in groups) on the EntrepSim Entrepreneurship Simulation (2nd half of semester)
Devote to home-study about 2 hours per class
Evaluation method
Group Work on case-studies (30%)
Class Participation (20%)