New Venture Financing

This course provides students an understanding of the economics of entrepreneurial finance and private equity, especially venture capital. The course will address financing and strategic issues faced usually by entrepreneurs in the early stage of a firm. Financial modeling will be used to determine how much money may and should be raised and from what source, and how the funding should be structured. Specific topics include: methods of valuing private firms, simulation to make better strategic choices, business plans, economics of contracts that underlie new venture finance venture capital partnerships (agreements, term sheets, etc.), financing sources, creating value through financing contracting, and exit strategies (initial public offerings, merger, other). This course will also emphasize the application of analytical methods to actual securities. A basic background in accounting and investments is also expected. Course work will include projects and assignments, which will require some familiarity with Microsoft windows and Microsoft office, particularly a basic understanding of how to utilize Excel spreadsheets.