English   Danish

2013/2014  KAN-CM_U127  Financing the Entrepreneurial Business

English Title
Financing the Entrepreneurial Business

Course information
Language English
Exam ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration One Quarter
Course period Spring
Changes in course schedule may occur
Wednesday 08.00-11.30, week 5-11
Wednesday 08.00-12.25, week 12
Time Table Please see course schedule at e-Campus
Max. participants 60
Study board
Study Board for MSc in Economics and Business Administration
Course coordinator
  • Robert Spliid - Department of International Economics and Management (INT)
Administration: Zahra Olsen - zo.int@cbs.dk
Main academic disciplines
  • Finance
  • Management
  • Management of Information and Knowledge Management
  • Economics, macro economics and managerial economics
Last updated on 17-12-2013
Learning objectives
This course is intended for master level students who wish to enhance their skills and knowledge on start-up ventures. The learning objectives are to be able:
  • To describe, classify, structure, and combine the concepts, theories, methods, and models of the course
  • To experience the process of identifying and pursue a business opportunity in either an independent setting or with a team of motivated peers
  • To analyze concrete problems: ponder some fundamental issues related to venturing and learn to assess the risks, challenges and rewards involved in the venturing process
  • To bridge the gap between theory and practice: learn to transform ideas into action
  • To measure and evaluate financial performance
  • To sharpen the ability to spot and evaluate opportunities for a new venture
  • To write a plan: develop a business plan for a new venture (as part of the course exam)
Course prerequisites
This course is opened to all master level students that have previous knowledge of economics, corporate governance, management and finance.
Examination
Financing the Entrepreneurial Business:
Examination form Oral exam based on written product

In order to participate in the oral exam, the written product must be handed in before the oral exam; by the set deadline. The grade is based on an overall assessment of the written product and the individual oral performance.
Individual or group exam Group exam, max. 4 students in the group
Size of written product Max. 15 pages
Assignment type Synopsis
Duration
Written product to be submitted on specified date and time.
20 min. per student, including examiners' discussion of grade, and informing plus explaining the grade
Preparation time No preparation
Grading scale 7-step scale
Examiner(s) Internal examiner and external examiner
Exam period Spring Term
Aids allowed to bring to the exam Closed Book
Make-up exam/re-exam
Same examination form as the ordinary exam
Course content and structure
 
This course will introduce you to the issues and practices of financing entrepreneurial businesses.  The course covers business planning, fundraising, pricing & structuring financings, and exiting.

The course is designed for those who want to start, buy or run their own businesses some day; those who want to work in the venture capital industry; those who expect to provide financial or consulting services to entrepreneurial companies; and those who want to learn about personal investing in privately-held companies. This is not a technical finance course; the course rather follows a pragmatic approach designed to put in various methods you have learned in finance and economics courses in order to enable the assessment of issues that arise in financing entrepreneurial businesses.

This course introduces theories, knowledge and financial tools an entrepreneur needs to start, built and harvest a successful venture. Therefore, the course will address various forms of financing available to new ventures, present the structure of financial contracts, as well as provide the student with the traditional valuation methods. For instance, we will review the standard tools of valuation applied to start-up situations and introduce the venture capital method and the real options approach to valuation. We will also look at the structure of venture capital funds and their fund raising process. Finally, we will discuss how founders should exit.

The structure for the course is as follows:
  • From the Idea to the Business Idea
  • Organizing and Financing a New Venture
  • Measuring and Evaluating Financial Performance of New Ventures
  • Types of Financing and the Costs of Financial Capital
  • Venture Capital Valuation Methods
  • Financially Troubled Ventures and Turnaround Opportunities
  • Exit Strategies: Going Public/ Industrial sale/Financial sale/Private sale
 
The course’s development of personal competences:
You will get hands-on experience in the following ways:
  • Through the formation and ongoing work of a team work that will develop a comprehensive mini project for a new start-up or for a selected start-up.
  • Through the lectures which are designed to familiarize you with the many dimensions of entrepreneurship and new venture development.
 
Hence, by the end of the course you should be well equipped
  • to assess different forms of entrepreneurial financing
  • to build your confidence and intuition about the entrepreneurial process of converting dreams and aspirations into reality
  • to be able to write an effective and professional mini project for a new or a selected start-up company.  
~
Teaching methods
The teaching methods for this course will employ a combination of lectures, case studies and student presentations of their mini project. External guest speakers from the venture industry will be invited.
Expected literature
literature:
 
General

Textbook:
J. Chris Leach, Ronald W. Melicher (2011), "Entrepreneurial Finance, 4 edition" Thomson South-Western.
Aswath Damodaran (2006), “Damodaran on Valuation, 2. Edition”,  New York: Wiley Finance

Additional Literature:

A. Bhide. (1996),. "The Questions Every Entrepreneur Must Answer" Harward Business Review,pp. 120-130.

Holtz-Eakin, Douglas, David Joulfaian and Harvey Rosen (1994), "Sticking It Out: Entrepreneurial Survival and Liquidity Contrraints," Journal of Political Economy, 102, pp. 53-75.

Bottazzi, Laura, Marco Da Rin and Thomas Hellmann (2008). "Who are the active investors? Evidence from venture capital" Journal of Financial Economics, 89(3), 488-512.

Kaplan, Steven N. (1989), "The Effects of Management Buyouts on Operating Performance and Value," Journal of Financial Economics 24: 217-254.

Foster, L., J. Haltiwanger, and C. Syverson. (2008). "Reallocation, Firm Turnover and Efficiency: Selection on Productivity or Profitability," American Economic Review, March 2008.

Chemmanur, Thomas J., Shan he, and Debarshi K. Nandy, (2010), the Going-Public Decision and the Product Market, Review of Financial Studies 23, 1855-1908.
Last updated on 17-12-2013
 



Course information
Language English
Exam ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration One Quarter
Course period Spring
Changes in course schedule may occur
Wednesday 08.00-11.30, week 5-11
Wednesday 08.00-12.25, week 12
Time Table Please see course schedule at e-Campus
Max. participants 60
Study board
Study Board for MSc in Economics and Business Administration
Course coordinator
  • Robert Spliid - Department of International Economics and Management (INT)
Administration: Zahra Olsen - zo.int@cbs.dk
Main academic disciplines
  • Finance
  • Management
  • Management of Information and Knowledge Management
  • Economics, macro economics and managerial economics
Last updated on 17-12-2013