Entrepreneurial Finance and Venture Capital (FINC-445-0)
This course uses the case method to study entrepreneurial finance and venture capital decision focusing on the funding decisions of start-ups (fast growing entrepreneurial firms). The goal is to understand how entrepreneurs can raise funds and how venture capital partnerships and growth equity funds choose, value, structure, fund, and manage their investments. The course covers all stages of the financing process, from startup to harvest. Several cases concern technology-based businesses, though the emphasis is on gaining insights into entrepreneurial finance, not technology per se. The course will go into great details with respect to structuring multi-staged financings and valuing entrepreneurial ventures. In addition, the course provides insights on how venture capital partnership work, why do they take the forms they do, and where the crucial problems and opportunities for innovation exists. Consideration is given to the incentives faced by venture capital partnerships and the investors in those partnerships, and how to properly make financing decisions and negotiate contractual terms. Emphasis is given to high growth start-ups searching for funding in the US and venture capital funding as opposed to more traditional entrepreneurial and family firms operating globally (see FINC945 for these topics) and to Leverage Buyouts (see FINC-448 for LBOs). The course is aimed primarily at people who may be involved in an entrepreneurial venture at some point in their careers whether in a large organization, a turnaround, a management buyout or a startup. The course is also useful for venture capital careers.