BE3201
ENTREPRENEURIAL FINANCE
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Course Description and Scope
The course is not only relevant for would-be entrepreneurs, but also for those considering a career in
commercial banks, investment banks, private equity firms, venture capital firms, as well as in
corporate venture investments. This course differs from a typical corporate finance course in that it
highlights the special and unique considerations when planning the financial needs of new ventures
and young companies. Many typical avenues of funding (such as bank borrowing, issuing of bonds or
issuing of liquid equities) for established or public listed companies are not accessible to small and
young companies due to the lack of business track record. The analyses and requirements of
investors who are considering providing finances to small and young companies may also be different
from that of public equity investments. This course will provide students with the understanding of
various aspects and processes in financial planning and financial management of new ventures or
young companies, as well as investment analyses and considerations for investors providing funding
to such companies.
Teaching Pedagogy
The course will be conducted through weekly three-hour seminar sessions. Students will be
introduced to the different financing tools and aspects of managing entrepreneurial ventures, as well
the investment considerations of private equity or venture capital investors. A hands-on session will
also be conducted to allow students to acquire Microsoft Excel spreadsheet intermediate skills, which
will be useful in financial forecasting.
Course Learning Objective
Acquisition of knowledge:
Students should demonstrate knowledge and application ability of core curriculum.
Problem solving & decision making:
Students should develop abilities to identify, analyze, solve financial problems for small companies or
new ventures, and effectively negotiate for external funding.
Course Assessments
Components
Class participation
Mid-term Assessment
Project (Business Plan, Term Sheet & Negotiation)
Total
Marks
15
35
50
100
Individual / Group
Individual
Individual
Group
Textbook
L&M:
Leach, J Chris and Melicher, Ronald W.
Entrepreneurial Finance
South-Western (Cengage Learning), 4th edition
ISBN-13: 978-0-538-48201-1
Page 1
Distributed by Nanyang Business School, Nanyang Technological University. All Rights Reserved.
Proposed Weekly Schedule
Week
Topic
1
Introduction – Overview
From Idea to the Business Plan
Organizing and Financing a New Venture
Measuring and Evaluating Financial Performance
Short-Term Financial Planning
Long-Term Financial Planning
(Microsoft Excel practice)
Types and Costs of Financial Capital
Valuing Early-Stage Ventures
Venture Capital Valuation Methods
Recess week
Professional Venture Capital
(Project – Presentation of Business Plan)
Other Financing Alternatives
(Project – Presentation of Term Sheet)
Security Structures and Determining Enterprise Values
(Project –Discussion and Investment Negotiation on Term Sheet)
Harvesting the Business Venture Investment Financially Troubled Ventures: Turnaround
Opportunities
(Project – Deal closing and final presentation)
2
3
4
5
6
7
8
9
10
11
12
13
14
Page 2
Distributed by Nanyang Business School, Nanyang Technological University. All Rights Reserved.