| Learning objectives |
- Assess financially an entrepreneurial venture
- Estimate the value of a nascent firm/newly established
firm
- Understand the difference between the funder’s perspectives and
those of the company being financed
- Account for how various sources of financial resources differ
(venture capital, business angle capital, private equity, early
stage, crowdfunding and traditional financing sources)
- Estimate the optimal timing in terms of obtaining funding and
when to go public
- Account for the conditions under which newly established firm
are financed by a venture capitalists. Both from the funder and the
receivers side of the market
- Account for the elementary aspects pertaining to
crowdfunding
- Report on the various principle-agent aspect that are central
to the fonder-funder relationship and how such associations tend to
play out
- Discuss how funders may assist founders in more ways than by
providing capital injections and discuss how funders may have an
impact on startup performance
|
| Course prerequisites |
| The course is offered to bachelor students in the
5th semester as an elective regardless of study line. The course
builds on the principles of finance, accounting and strategy.
Students with insights in quantitative analysis may gain more from
this course. BUt it is not a prerequisite to have had
statistics/econometrics before. |
| Examination |
|
Entrepreneurial Finance:
|
| Exam
ECTS |
7,5 |
| Examination form |
Written sit-in exam on CBS'
computers |
| Individual or group exam |
Individual exam |
|
The exam is a multiple choice. Students are given
two hours to complete the multiple choice. It is based on regular
multiple choice questions and multiple choice based on financial
statements which students need to use for calculating values and
measures. Students will be given exercises during the course, which
will resemble that of the exam. Solutions to the exercises will
also be circulated. |
| Assignment type |
Multiple choice |
| Duration |
2 hours |
| Grading scale |
7-point grading scale |
| Examiner(s) |
One internal examiner |
| Exam period |
Winter |
| Aids |
Limited aids, see the list below:
The student is allowed to bring - An approved calculator. Only the models HP10bll+ or Texas BA ll
Plus are allowed (both models are non-programmable, financial
calculators).
- Language dictionaries in paper format
The student will have access to - Advanced IT application package
|
| Make-up exam/re-exam |
Same examination form as the ordinary exam
The number of registered candidates for the make-up
examination/re-take examination may warrant that it most
appropriately be held as an oral examination. The programme office
will inform the students if the make-up examination/re-take
examination instead is held as an oral examination including a
second examiner or external examiner.
If the number of registered
candidates for the make-up examination/re-take examination warrants
that it may most appropriately be held as an oral examination, the
programme office will inform the students that the make-up
examination/re-take examination will be held as an oral examination
instead.
|
|
| Course content, structure and pedagogical
approach |
|
Course Description:
Entrepreneurship often involves a number of challenges
characterized by risk and uncertainty, that need
considerations pertaining to finance. These financial
challenges especially represent a hurdle for entrepreneurs
in high-tech settings. Securing funding and establishing the
financial resources to undertake an entrepreneurial venture is
more often than not one of the main activities to undertake
when establishing a new firm. Startup investors are also in
need of assessing and understanding the financial aspects of
potential investment opportunities vis-à-vis nascent entrepreneurs
or newly established firms. Furthermore, there are substantial
managerial challenges pertaining to finance that need to be
considered in entrepreneurial settings. Not least the choices among
mulitple potenital partners mog investors and entrepreneurs. This
course provides insight in these aspects of the
entrepreneurial process.
Course Contents:
This course offers tools and insights that help entrepreneurs or
their investors
navigate through these challenges. Especially, the course will aim
to provide
answers to questions like; how much money is needed for
establishing the
business; what type of investor is optimal for the business; when
should the
money be raised; what is the value of the newly founded
firm; how should
entrepreneurs think about exiting; What are the benefits of having
an investor associated; Why do some investors choose to
syndicate.
|
| Description of the teaching methods |
Teaching methods:
The pedagogical method is a combination of lectures, cases, and
exercises. A satisfactory high outcome of the exercises requires an
active participation that is coupled with the studied literature.
The exercises are an integrated part of the learning process. A
large part of the course relies heavily on academic publications
making use of quantitative investigations. |
| Feedback during the teaching period |
Solutions to exercises are provided on canvas.
|
| Student workload |
| Lectures and exercises: |
166 hours |
| Exam: |
40 hours |
|
| Further Information |
|
Mixture of two and three hour lectures. Some of which will
discuss solutions to exercises
|
| Expected literature |
|
Leach, J. C., & Melicher, R. W. (2017). Entrepreneurial
finance. 6th edition, Cengage Learning.
|
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