20453 - VENTURE CAPITAL AND VALUATION
Course taught in English
Go to class group/s: 22
First, we look at raising and sourcing funding for entrepreneurial companies. We start with an introduction to Entrepreneurial Finance and review traditional sources of finance: bank loans, public grants and "family, friends and fools", and then we move to analyze un-intermediated finance, where we focus on (informal) business angels and (formal) corporate venture investors.
Next, we look at financial forecasting and financial management of entrepreneurial firms. We delve deeply into the valuation of entrepreneurial companies, the reasons why financial projections are needed in a business plan and their role for both entrepreneurs and financiers. Then, we move to the analysis of deal structuring.
Finally, we cover deal management. This can be divided into investor involvement and exit.
- The sources of Entrepreneurial Finance.
- The VC Industry: a survival kit.
- Financial contracting theory and applications.
- The role of business plan for venture capitalists.
- Valuation theory and valuation practice for an outside investor.
- The analysis of deal structuring.
- The Interaction between Product Market and Financing Strategy.
- IPO and the effect of going public.
- The exam is written with a mix of open ended and multiple choice questions. Students can attend the partial exam on the first part of the course.
- Class participation.
- Group assignments.
- Individual/group presentation.
- J.K. Smith, R.L. Smith, Entrepreneurial Finance, Wiley & Sons Inc, 2004, 2nd edition.
- Some topics are covered by case histories/working papers that are distributed through the Personal Diary.
- Descriptive and inferential statistics (mean, standard deviation, correlation, variance-covariance matrices, main statistical distributions, linear multivariate regressions, etc.).
- Corporate finance theory and practice (i.e. Capital Asset Pricing Model, IRR, NPV, etc.).