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2020/2021  KAN-CCMVI2101U  Entrepreneurial Finance

English Title
Entrepreneurial Finance

Course information

Language English
Course ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration Summer
Start time of the course Summer
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 60
Study board
Study Board for MSc in Economics and Business Administration
Course coordinator
  • Sven Bislev - Department of Management, Society and Communication (MSC)
For academic questions related to the course, please contact instructor
Shailendra Kumar Rai, Associate Professor, Management Development Institute, Gurgaon, skrai@mdi.ac.in
Other academic questions: contact Sven Bislev at sb.msc@cbs.dk
Main academic disciplines
  • Entrepreneurship
  • Finance
Teaching methods
  • Online teaching
Last updated on 18/01/2021

Relevant links

Learning objectives
By the end of this course students will be able to:
  • Appreciate the difference between the funder's perspectives and those of the firm being financed.
  • Develop abilities to identify, analyze, solve financial problems for small and start-up companies and effectively negotiate for external funding.
  • Use strategic partnering and Operate internationally.
Course prerequisites
Familiarity with basic issues in Managerial Economics and Finance.
Examination
Entrepreneurial Finance:
Exam ECTS 7.5
Examination form Home assignment - written product
Individual or group exam Individual exam
Size of written product Please see text below
4 hour home assignment. No requirement for maximum number of pages.
Assignment type Written assignment
Duration Written product to be submitted on specified date and time.
Grading scale 7-point grading scale
Examiner(s) One internal examiner
Exam period Summer, Ordinary exam: 4-hour home assignment in the period of 26–30 July 2021
Retake exam: 4-hour home assignment in the period of 20 – 24 September 2021
3rd attempt (2nd retake) exam: 72-hour home assignment – 22 – 25 November 2021 – for all ISUP courses simultaneously
Exam schedules available on https:/​/​www.cbs.dk/​uddannelse/​international-summer-university-programme-isup/​courses-and-exams
Make-up exam/re-exam
Same examination form as the ordinary exam
Retake exam: 4 hour home assignment, new exam question
Exam form for 3rd attempt (2nd retake): 72-hour home project assignment, max. 10 pages.
Course content, structure and pedagogical approach

Course content:

The objective of the course is to present the theory and practice of the financing of entrepreneurial firms. Special attention will be devoted to understanding the motivations of the different players (mainly financiers and entrepreneurs) and how to reconcile their interests.

 

The course is to a large extent based on case studies that will be discussed in class. Students will learn how to choose among different types of investors and to value new ventures. In particular, the course will also focus on valuation methods for innovative startups. Students will also get a better understanding of various source of finance for start-up firms and how deals are structured between investors and entrepreneurs to mitigate well-known agency problems inherent to young companies. 

 

The course is then not only relevant for students willing to become entrepreneurs but also for students considering working in banks, private equity firms, public institutions supporting small and medium enterprises, service firms providing assistance to Small and medium enterprises etc. 
Thus, this course is intended for students who wish to enhance their skills and knowledge in those areas of business that lead to successful entrepreneurship and/or small business management. The focus will on those financial issues and decisions of particular concern to sole proprietors, partnerships, family-owned businesses and small non-public corporations. This will include the financial aspects of the relationship between the firm and its owners. 

 

In this course, we will discuss various forms of financing available to new ventures, present the structure of financial contracts, as well as provide the student with the basics of valuation methods. A significant part of the course will deal with venture capita, private equityl and angel finance. Real-world case studies on entrepreneurial finance will be discussed during the course. 

Students are expected to participate actively in discussions.

 

The following broad areas which will be discussed, but are not limited to, are as folows:
- Sources of financing for start-ups-Traditional and Alternate
- choosing the right investor
- Valuation methods for new ventures
- Term sheets and contracting
-  Special e.g. corporate venturing, crowd-funding, peer-to-peer lending, community shares, customer funding,  international perspectives of venture capital finance.

 

Course structure:

Preliminary assignment: Pick an article from the mandatory readings and prepare a presentation of it for the first class

 

Class 1:Introduction: Financial Perspective of Entrepreneurial Firms
Class 2:The Entrepreneurs Perspective of Venture Finance
Class 3:Source of Value, Raising Capital
Class 4: Venture Capital, Angel Finance , crowdfunding and other Sources of Financing
Class 5:Valuation Methods for New Ventures 
Class 6: Valuation Methods for New Ventures 

 

Feedback activity: OPEN FEEDBACK through structured questions 

Class 7: Term Sheets and Covenants


Class 8: Term Sheets and Covenants
Class 9: Exit strategies
Class 10: Exit strategies 
Class 11: Reinventing 

Description of the teaching methods
This year all courses are taught digitally over the Internet. Instructors will apply direct/live teaching through a link (like Skype, Team, Zoom). In some courses, pre-recorded material will also be used.
Feedback during the teaching period
At the end of class 6, students will be asked to take a quiz (multiple-type questions based) which will help to know whether they are travelling with me in the course or not. It will also help me to understand which topics reuires further elaboration and discussion etc.
Student workload
Preliminary assignment 20 hours
Classroom attendance 33 hours
Preparation 126 hours
Feedback activity 7 hours
Examination 20 hours
Further Information
Preliminary assignment: To help students get maximum value from ISUP courses, instructors provide a reading or a small number of readings or video clips to be read or viewed before the start of classes with a related task scheduled for class 1 in order to 'jump-start' the learning process.

Course timetable is/will be available on https://www.cbs.dk/uddannelse/international-summer-university-programme-isup/courses-and-exams
 
We reserve the right to cancel the course if we do not get enough applications. This will be communicated on https://www.cbs.dk/uddannelse/international-summer-university-programme-isup/courses-and-exams in March 2021.
Expected literature

Mandatory readings:

A list of 28 HBR articles and 11 cases will be uploaded on Canvas

 

Additional relevant readings:

1. W.A. Sahlman, H.H. Stevenson, M.J. Roberts and A. Bhidé, The Entrepreneurial Venture (HarvardBusinessSchool Press) 
2. P.A. Gompers and J. Lerner, The Money of Invention: How Venture Capital Creates New Wealth (HarvardBusinessSchool Press, 2001)
3. P.A. Gompers and J. Lerner, The Venture Capital Cycle , 2nd edition (MIT Press)
4. Leach, J Chris and Melicher, Ronald W, Entrepreneurial Finance, South Western ( Cengage Learning), 6th Edition  
5. Steven Rogers  and Roza Makonnen, Entrepreneurial Finance, Third Edition: Finance and Business Strategies for the Serious Entrepreneur.

Last updated on 18/01/2021