STEVENS INSTITUTE OF TECHNOLOGY
HOWE SCHOOL OF TECHNOLOGY MANAGEMENT
MGT 472: ASSESSING AND FINANCING OF TECHNICAL BUSINESS OPPORTUNITIES
SPRING 2013
INSTRUCTOR:
Mario A. González-Corzo, Ph.D.
E-mail: mario.gonzalez-corzo@stevens.edu
mg3130@columbia.edu
mario.gonzalez-corzo@lehman.cuny.edu
Telephone: 201-923-8346
Office: Babbio Center for Technology, Room 4403
Office hours: By appointment only.
COURSE ARRANGEMENT:

Tuesdays: 6:15 P.M. to 8:15 P.M. (Morton Complex, 205)
COURSE DESCRIPTION:
This course presents a systematic approach to the evaluation and financing of technical business opportunities.
The course is divided into four (4) learning modules: (1) Identifying and Evaluating Business Opportunities, (2)
Entrepreneurial Finance, (3) Managing the Early-Stage Venture, and (4) Managing Growth. Topics to be discussed
include: understanding and preparing successful business plans, business model analysis, financing new business
ventures (sources of funding), evaluating new venture opportunities from a financial perspective, structuring deals,
legal issues related to new business ventures, funding issues, risk management, challenges and opportunities
confronting growing business ventures, brand evolution, franchising, and evaluation of alternative growth and
expansion strategies.
COURSE LEARNING OBJECTIVES:
Upon successful completion of this course, the student will be able to:
1.
2.
3.
Understand the fundamental components of a successful business plan,
Analyze business models, with a particular emphasis on technological business ventures,
Discuss the financing options available to entrepreneurs and the advantages and disadvantages of the
various financing options commonly used to launch new business ventures,
4. Describe the principal entrepreneurial financing alternatives available in the U.S (e.g. debt, capital
pooling, and angel investors),
5. Identify the principal financial criteria applied by venture capitalists in evaluating a business plan,
6. Understand the concept of business valuation and its analytical components, and the types of deals
commonly done by entrepreneurs and investors, with a particular emphasis on term sheets.
7. Discuss how money is distributed within startups (i.e. equity splitting and other arrangements between
founders),
8. Explore the legal and risk management issues and challenges confronted by business ventures,
9. Discuss the evolution of brands of young/small companies and the related challenges and opportunities,
and
10. Analyze growth opportunities for business ventures, with a focus on public offerings, selling out, or going
global.
1
RECOMMENDED TEXTBOOK (NOT REQUIRED):*
New Venture Creation: Entrepreneurship for the 21st Century, 9th Edition, 2012.
Stephen Spinelli and Rob Adams
ISBN: 13-9780078029103
McGraw Hill.
*Older editions can also be used.
** The textbook is not required; however, it is strongly recommended since it will serve as the basis for my
lectures and provides the theoretical framework for the topics covered in this course.
HARVARD BUSINESS SCHOOL (HBS) COURSEPACK (REQUIRED):
I have created a Course Pack using selected Cases and Notes published by Harvard Business Publishing (HBP). This
Course Pack contained the assigned reading assignments (see table below), and can be purchased at:
https://cb.hbsp.harvard.edu/cbmp/access/17134212
Harvard Business School (HBS) Course Pack Content:
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Title
Analyzing New Venture Opportunities
(HBS Note)
How to Write a Great Business Plan
(HBS Note)
Business Model Analysis for
Entrepreneurs (HBS Note)
ZipCar: Refining the Business Model
(Case)
Financing New Ventures (HBS Note)
How Venture Capitalists Evaluate
Venture Opportunities
A Note on Valuation of Venture
Capital Deals (Stanford Note)
HurryDate (Case)
Deal Structure and Deal Terms (HBS
Note)
Entrepreneurial Decisions and Legal
Issues in Early Venture Stages: Advice
that Shouldn’t be Ignored (Business
Horizons Article)
The Legal Protection of Intellectual
Property
The Legal Forms of Organization (HBS
Note)
Assembling the Start-Up Team (HBS
Note)
Apple’s Core (Case)
Beating the Odds When You Launch a
New Venture (HBR Article)
Playing with Fire at Sittercity
A Note on Managing the Growing
Venture (HBS Note)
Entrepreneurs: Invent a Brand or
Revive and Old One? (Business
Author(s)
Roberts
Product #
809163
Year
2009
Pgs.
14
Sahlman
97409
1997
11
Eisenmann
812096
2011
25
Hart, Roberts & Stevens
803096
2003
20
Kerr & Nanda
Roberts & Barley
811093
805019
2011
2004
21
19
Hellmann
E95
2001
14
Katz, Riedl & Deckinger
Roberts & Stevenson
110035
806085
2009
2005
11
8
Marcum & Blair
BH425
2011
10
Roberts
898230
1998
8
Roberts
898825
1998
10
Wasserman
812122
2012
5
Wasserman
Gilbert & Eyring
809063
R1005G
2008
2010
8
8
Wasserman & Gordon
Hamermesh, Heskett &
Roberts
Bellman
809009
805092
2009
2005
18
9
BH121
2005
8
2
19
20
21
22
23
Title
Horizons Article)
Scaling a Start-Up: People and
Organizational Issues (HBS Note)
Building Sustainable High-Growth
Startup Companies: Management
Systems as an Accelerator (CMR
Article)
A Note on Franchising (HBS Note)
Franchisor Strategy and Firm
Performance: Making the Most of
Strategic Resource Investments
(Business Horizons Articles)
Entrepreneur’s Path to Global
Expansion (Sloan Article)
Author(s)
Product #
Year
Pgs.
Eisenmann & Wagonfeld
812100
2012
18
Davila, Foster & Jia
CMR459
2010
28
Gompers
Gillis & Combs
297108
BH357
1997
2009
21
9
Kuemmerle
SMR160
2005
10
METHODS & PROCEDURES:
Lectures, discussions, and readings. You must attend class in order to be aware of any material not covered in the
textbook, any changes in the class program, and material covered on the exams.
COURSE DELIVERABLES:
There will be three (4) course deliverables (i.e assignments that must be submitted) for this course. (Please see
the Grading Criteria and Course Outline for more details.)
CLASS ATTENDANCE AND PARTICIPATION:
Class attendance and participation will be critical to having a dynamic learning experience. Class attendance is
mandatory. You are allowed a maximum of three (3) unexcused absences during the course. Any absences after
that must be supported with proper evidence or documentation. Unexcused absences (beyond the maximum
number allowed) will be penalized as follows: five (5) points from your numerical grade for each absence, which
will affect your final letter grade for the course.
GRADING CRITERIA:
ITEM
Percent
of Final
Grade
Attendance and Participation
DELIVERABLES*
1. Project Summary for Business Case
2. Positioning Statement and Value
Proposition (for Business Case)
3. Valuation/Financial Analysis (for
Business Case)
4. Business Case (Final Project)
Total
20%
10%
10%
20%
40%
100%
*Detailed instructions and requirements will be provided in separate documents.
3
Grade Scale:
Letter
Grade
Numerical
Grade
A
AB+
B
BC+
C
CD+
D
F
100-95
90-94
86-89
83-85
80-82
76-79
73-75
70-72
65-69
60-64
00-59
COURSE OUTLINE:
WEEK
DAY
DATE
1
Tuesday
1/15
2
Tuesday
1/22
3
Tuesday
1/29
4
Tuesday
2/25
5
Tuesday
2/12
6
Tuesday
2/19
7
Tuesday
2/26
8
Tuesday
3/5
9
Tuesday
3/12
10
Tuesday
3/19
TOPICS TO BE DISCUSSED
Module I: Identifying and Evaluating New Business Opportunities
Introduction and Course Overview
Topics: Historical overview of venture capital in the U.S.
Topics: Evaluating new venture opportunities, understanding business plans.
Reading Assignments:
1. Analyzing New Venture Opportunities (HBS Note)
2. How to Write a Great Business Plan (HBR Article)
Topics: Understanding and analyzing business models.
Reading Assignments:
3. Business Model Analysis for Entrepreneurs (HBS Note)
Topics: Understanding and analyzing business models.
Reading Assignments:
4. ZipCar: Refining the Business Model (Case)
Module II: Enterprise Finance
Topics: Sources of financing for new business ventures
Reading Assignments:
5. Financing New Ventures (HBS Note)
6. How Venture Capitalists Evaluate Venture Opportunities
CLASSES FOLLOW MONDAY SCHEDULE
Deliverables:
 Summary/Description of Project for Business Case (1 -2 pgs.)*
*Email submission.
Topics: Enterprise valuation
Reading Assignments:
7. A Note on Valuation of Venture Capital Deals (Stanford Note)
8. HurryDate (Case)
Topics: Structuring deals
Reading Assignments:
9. Deal Structure and Deal Terms (HBS Note)
SPRING BREAK
Module III: Managing the Early-Stage Venture
Topics: Legal issues, intellectual property, and business forms.
4
WEEK
DAY
DATE
11
Tuesday
3/26
12
Tuesday
4/2
13
Tuesday
4/9
14
Tuesday
4/16
15
Tuesday
4/23
16
Tuesday
4/30
TOPICS TO BE DISCUSSED
Reading Assignments:
10. Entrepreneurial Decisions and Legal Issues in Early Venture Stages: Advice
that Shouldn’t be Ignored (Business Horizons Article)
11. Legal Protection of Intellectual Property (HBS Note)
12. The Legal Forms of Organization (HBS Note)
Deliverables:
 Positioning Statement and Value Proposition for Business Case*
 Valuation/Financial Analysis for Business Case
*Email submission
Topics: Assembling Non-Financial Resources
Reading Assignments:
13. Assembling the Startup Team (HBS Note)
14. Apple’s Core (Case)
Topics: Risk management, risk assessment.
Reading Assignments:
15. Beating the Odds when You Launch a New Venture (HBR Article)
16. Playing with Fire at Sittercity (Case)
Module IV: Managing Growth
Topics: Managing a growing venture, branding strategies.
Reading Assignments:
17. A Note on Managing the Growing Venture (HBS Note)
18. Entrepreneurs: Invent a Brand Name or Revive and Old One? (Business
Horizons Article)
Topics: Venture expansion and growth strategies.
Reading Assignments:
19. Scaling a Startup: People and Organizational Issues (HBS Note)
20. Building Sustainable High-Growth Startup Companies: Management Systems
as an Accelerator (CMR Article)
Topics: Franchising.
Reading Assignments:
21. A Note on Franchising (HBS Note)
22. Franchisor Strategy and Firm Performance: Making the Most of Strategic
Resource Investments (Business Horizons Article)
Topics: Global Enterprise Growth and Expansion.
Reading Assignments:
23. Entrepreneur’s Path to Global Expansion (MIT Sloan Article)
Deliverables:
 Business Case*
*Email submission
COURSE POLICIES:
Academic dishonesty will not be tolerated and will be addressed according to university policy. If you need to miss
an exam, it is your responsibility to notify me as soon as possible and we will arrange a makeup time. If you are in
need of assistance with disability services, please come see me early in the semester.
5