Content, progress and pedagogy of the module

The module will guide students through the complete life cycle of a start-up venture from launch to exit. It specifies different stages that a new company may go through as it grows, and outlines financial challenges confronting entrepreneurial ventures along the way. Students will receive answers to key questions: how much money can and should be raised, what is the optimal timing of obtaining financing, what is a reasonable valuation of the venture, how and where to obtain financing, how funding should be structured and how to position a new venture strategically. Students will be introduced to knowledge, theories and corporate finance tools that will help to recognise venture value, measure and evaluate financial performance.

This module is designed for students who have a basic understanding of finance and familiar with the concepts such as time value of money, basic valuation principles, basic risk and return tradeoff fundamentals, basics of evaluation of investment alternatives.

During the module students will be introduced to approaches to valuing new venture or start-up equity from a venture capital (VC) perspective, will learn about various types of investors (venture capital, business angels, private equity, early stage and traditional financing sources) and financing of high-risk, high-growth ventures, the optimal timing in terms of obtaining funding and when to go public, exit and turnaround strategies, and the impact of digitalisation on entrepreneurial finance market. The module is essential for those wishing to understand the financial aspects of entrepreneurship and interested in gaining a broader view of the financial landscape and deal structure for new ventures, and for those considering starting a company and raising capital.

Learning objectives

Knowledge

The objective is that the student after the module possesses the necessary knowledge on:

• how to conduct comprehensive evaluation of a new venture, valuation methods, the purpose and challenges of performing evaluation.
• challenges of financing entrepreneurial growth companies and sources of financial resources.
• understanding the financial aspects of entrepreneurship, the stages of a start-up development, exit strategies.

Skills

The objective is that the student after the module possesses the necessary skills in:

• evaluating venture opportunities and navigating the funding process from the perspective of both an entrepreneur and venture capitalist.
• conducting venture valuation in practice by applying IT tools and understanding the impact of risk and uncertainty on the choice of financing.
• making informal financial decisions, strategic planning and structuring deals.

Competences

The objective is that the student after the module possesses the necessary competences in:

• logical thinking, critical analysis, evaluating and interpreting situations and problems that stakeholders might confront in an entrepreneurial firm.
• specific financial planning and financial decision-making needs of entrepreneurial ventures, including start up and development phase financial and management problems.
• applying financial models to appraise the value of a venture or better evaluate the market potential of an opportunity.

Type of instruction

For information see § 17.

Exam

Exams