This course is intended to provide students with an overall introduction to entrepreneurial finance.
In the first lectures, the course offers a theoretical perspective, discussing different aspects of entrepreneurial finance and the internal structure of business ventures, including for instance i) the financial plan, ii) term sheets that contain the terms and conditions of the relationships between investors and entrepreneurs, iii) the staged financing practices of new ventures, iv) ownership and internal organisation, and v) the valuation of new ventures. We will consider the challenges entrepreneurs face who need to raise capital, and the different types of investors they can turn to.
Since entrepreneurs and investors often have different perspectives and incentives that may lead to conflicts, term sheets are extremely important in the area of entrepreneurial finance. We therefore provide an introduction to business contracting theory and negotiation, including smart contracts.
In the last part of the course, students will put the knowledge from this course into practice, as they are going to work with actual term sheets. More specifically, students will analyze different term sheets from a financial and strategic organizational perspective. Topics such as staged financing, the internal organization and division of control and valuation are now addressed from a practical viewpoint.
In the last lectures of the course, attention will also be paid to the latest developments and alternative financing options like crowdfunding and ICOs.
|At the end of the course, students will be able to:
• understand, apply and analyze the theory of entrepreneurial finance and the internal organization of business ventures, including for instance the different sources of entrepreneurial finance, staged finance and the challenges entrepreneurs face;
• understand and analyze the financial structure of a company, differences between debt and equity financing, and the different valuation techniques estimating the value of the company and can assess whether a valuation is reliable;
• recognize the different economic principles to be applied in the development of contractual relationships and apply these principles in analyzing business contracts and providing new contract (clauses);
• negotiate a contract and sketch the structure and the content of the contract;
• understand, analyze and assess the terms and mechanisms in a term sheet from the perspectives of either the entrepreneurial firm or the investor;
• evaluate and advise an entrepreneurial firm in terms of various financing options, e.g., debt, angel, venture capital, and crowdfunding.
-Negotiation case (30%)
- Final written exam with open-ended questions (70%)
Resit: 100% written exam
|To be announced on blackboard (everything will be electronically available)