BE3201 ENTREPRENEURIAL FINANCE _________________________________________________________________________ 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.