English   Danish

2019/2020  BA-BHAAV2262U  Entrepreneurial Finance

English Title
Entrepreneurial Finance

Course information
Language English
Course ECTS 7.5 ECTS
Type Elective
Level Bachelor
Duration One Quarter
Start time of the course Second Quarter
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for BSc in Economics and Business Administration
Course coordinator
  • Morten Sørensen - Department of Finance (FI)
Main academic disciplines
  • Entrepreneurship
  • Finance
Teaching methods
  • Face-to-face teaching
Last updated on 11-02-2019

Relevant links
Learning objectives
• Assess financially an entrepreneurial opportunity
• Estimate the value of a nascent firm/newly established firm
• Understand the difference between the investor perspectives and those of the nascent company being financed
• Account for how various sources of financial resources differ (venture capital, angel capital, private equity funds, early stage and traditional financing sources)
• Estimate the optimal timing in terms of obtaining funding and when to go public
  • Assess financially an entrepreneurial opportunity
  • 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 and traditional financing sources)
  • Estimate the optimal timing in terms of obtaining funding and when to go public
Course prerequisites
The course is offered to bachelor students in the 5th semester as an elective
regardless of study line. It can be chosen as a stand-alone elective or as part of
the three courses Minor in Entrepreneurship consisting of Entrepreneurial
Finance, Entrepreneurial Strategy and Business Planning and Business Models.
The course builds on the principles of finance. And it is complementary to the
other courses in the minor.
Prerequisites for registering for the exam (activities during the teaching period)
Number of compulsory activities which must be approved: 1
Compulsory home assignments
The mandatory assignment is a 5 page 72-hour take home set assignment.
The mandatory assignment must be passed for the student to partake in the final exam

Oral presentations etc.
If the mandatory assignment is failed or there has been documented illness a second assignment will be offered before the ordinary exam takes place.
Examination
Entrepreneurial Finance:
Exam ECTS 7,5
Examination form Written sit-in exam on CBS' computers
Individual or group exam Individual exam
Assignment type Multiple choice
Duration 2 hours
Grading scale 7-point grading scale
Examiner(s) One internal examiner
Exam period Winter
Aids Closed book: no aids
However, at all written sit-in exams the student has access to the basic IT application package (Microsoft Office (minus Excel), digital pen and paper, 7-zip file manager, Adobe Acrobat, Texlive, VLC player, Windows Media Player), and the student is allowed to bring simple writing and drawing utensils (non-digital). PLEASE NOTE: Students are not allowed to communicate with others during the exam.
Make-up exam/re-exam
Same examination form as the ordinary exam
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.
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. 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; and how should 
entrepreneurs think about exiting.
Description of the teaching methods
Teaching methods:
The pedagogical method is a combination of lectures, cases, exercises and an
individual homework assignment. A satisfactory high outcome of the exercises
requires an active participation with basis in the literature and the lectures. The homework assignment is an integrated part of the learning process and not only a part of the exam.
Feedback during the teaching period
Class feedback sessions after exams
Student workload
Lectures and exercises: 166 hours
Exam: 40 hours
Further Information

Lectures:

15 lectures of 2 hours each
Expected literature

Belleflamme, P., Lambert, T., & Schwienbacher, A. (2014). Crowdfunding: Tapping the right crowd. Journal of business venturing, 29(5), 585-609.

 

Leach, J. C., & Melicher, R. W. (2017). Entrepreneurial finance. 6th edition, Cengage Learning.

 

Mollick, E. (2014). The dynamics of crowdfunding: An exploratory study. Journal of business venturing, 29(1), 1-16.

 

Chen J. and Løntoft M., Forthcoming and will be uploaded when ready.

 

Metrick, A. and Yasuda, A. (2011). Venture Capital and the Finance of Innovation, 2nd edition, Wiley and Sons (chapter 10)

 

Kaplan, S. and Strömberg, P. (2005). Characteristics, Contracts and Actions: Evidence from Venture Capitalist Analyses, Journal of Finance vol. 59

 

Hellmann, T. (2006). IPOs, Acquisitions, and the use of Convertible Securities in Venture Capital, Journal of Financial Economics vol. 81
Last updated on 11-02-2019