This course examines the process of financing the corporation in private and public securities markets. We begin by introducing venture capital and a start-up environment and navigating the funding process from the entrepreneurial perspective. We will wrap-up by evaluating performance from the venture capitalist perspective and understanding the key elements of a term sheet. The course consists primarily of case studies supported by readings on the particular case topic.
Students will Learn:
- To navigate the capital raising process, selecting potential portfolio firms for investment, and understanding and negotiating the venture capital term sheet.
Module 1 – The Basics
- Learning Objective: For the entrepreneurs out there, we address the question, “Why would I seek venture financing?” and for the venture capitalists, “How do I select the right start-ups to invest in?”
Module 2 – How to Raise Capital
- Learning Objective: Use the Pinnacle Case to determine how an entrepreneur should execute the steps of the funding process.
Module 3 – Selecting Portfolio Firms
- Learning Objective: Focus on the quantitative metrics against which firm performance is evaluated. Just as raising money is key to the success of a start-up firm, selecting firms to invest in is a critical decision for a venture capitalist. The outcome of this decision is another step towards answering our key course question, “Who survives the Shark Tank?”
Module 4 – Negotiating the Deal I
- Learning Objective: Understand and negotiate the major aspects of term sheets that come your way and close a lucrative deal.
Module 5 – Negotiating the Deal II
- Learning Objective: Tackle two competing term sheets that have been submitted to the start-up firm trendsetter. This understanding will help you survive the onslaught of sharks that your business idea will encounter.
- This course is targeted towards professionals, upper-level undergraduate, and graduate students who have a general interest in finance or valuation of young firms, aspire to launch a start-up based on their technology or service idea, or are interested in investing as a venture capitalist or independently into start-up firms.