• 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 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 

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.