Universitat Internacional de Catalunya
Financial Economics
Teaching staff
Upon appointment: ipierrakis@uic.es
Introduction
This course trains entrepreneurs for the early stage investment landscape by teaching them to prepare financial statements for investors, choose the venture corporate structure, understand the main sources of capital for early stage companies, identify the steps of the funding process, implement the process of raising capital, manage turnaround opportunities and understand the process of harvesting the business venture.
Pre-course requirements
- Basic skills in finance and accounting.
Objectives
1. Understand the early stage investment landscape.
2. Prepare financial statements for investors.
3. Chose the venture corporate structure.
4. Know the main sources of capital for the early stage companies.
5. identify the steps in the funding process.
6. Implement the process to raise capital.
7. Pitch investors and close the rounds.
8. Understand professional venture capital.
9. Manage turnaround opportunities.
10. Understand the proves of harvesting the business venture.
Competences/Learning outcomes of the degree programme
- CB10 - To have the learning skills that allow them to continue studying in a way that will mostly need to be self-managed or autonomous.
- CB8 - Que los estudiantes sean capaces de integrar conocimientos y enfrentarse a la complejidad de formular juicios a partir de una información que, siendo incompleta o limitada, incluya reflexiones sobre las responsabilidades sociales y éticas vinculadas a la aplicación de sus conocimientos y juicios.
- CE6 - Analizar el entorno económico-financiero de las organizaciones así como los costes asociados a sus actividades.
- CE7 - Gestionar óptimamente los recursos materiales, económicos y humanos de las organizaciones para asegurar una gestión adecuada de los sistemas de producción empresariales.
- CG1 - Capacidad de organización y planificación del trabajo, teniendo en cuenta posibles adversidades que requieran de la adaptación a nuevas situaciones.
- CG2 - Capacidad de trabajo e integración en equipos humanos de trabajo multidisciplinares y multiculturales, y si procede, asumir el liderazgo.
- CG3 - Capacidad para generar nuevas ideas y evaluar de forma crítica las alternativas en presencia de múltiples criterios y actores.
- CT1 - Capacidad de comunicar de forma efectiva en un contexto profesional tanto verbalmente como por escrito en la propia lengua y al menos otra lengua extranjera (inglés).
- CT3 - Uso solvente de los recursos de información y capacidad de análisis y síntesis de la misma.
- CT4 - Aplicar los conocimientos adquiridos para la resolución de problemas en entornos nuevos o poco conocidos dentro de contextos multidisciplinares relacionados con el área de estudio.
- CT5 - Manifestar sensibilidad por los valores éticos, personales y sociales, en la relación con los otros y en las propias decisiones.
Learning outcomes of the subject
Students gain the knowledge to interact successfully with agents involved in creation and development of new ventures. (Entrepreneurs, Angel Investors and Venture Capital) and to understand the process of entry and exit of investors in early-stage ventures. By using the case methodology and negotiaton process simulation,students are involved and learn as they examine concepts related to the venture investment process.
Syllabus
PART 1. EARLY STAGE INVESTMENT.
Chapter 1. Main sources of capital for early stage firms.
Chapter 2. Professional and Non-Professional Venture Capital.
Chapter 3. The Business Plan.
Chapter 4. The Corporate Structure.
Case Studies.
PART 2. BUSINESS VALUATION AND INVESTMENT PROCESS.
Chapter 5. Business Valuation.
Chapter 6. Steps in the funding process.
Chapter 7. Issuing financial instruments.
Chapter 8. Closing the round.
Case Studies/Role Play.
PART 3. HARVESTING AND ALTERNATIVES.
Chapter 9. Venture Capital Funds.
Chapter 10. Growth and Harvesting.
Chapter 10. Exit alternatives.
Case Studies/Role Play.
Teaching and learning activities
In person
Synchronous lectures and tutorials
In-class and online role play activities: Students take on an assigned role in a group or individual activity
Group-work activities where students work collaborate in a wiki in order to prepare online presentations of a case study analysis to the whole class
Asynchronous discussion forum
Problem-based learning in-class and online activities
Discussion boards, chat, e-mail, blogs, video conferencing, desktop sharing applications and whiteboards
Evaluation systems and criteria
In person
Synchronous Final Exam: divided in two parts: theoretical (40%) and practical (60%) Minimum of 5 out of 10 of each of these parts to pass the subject. The final exam mark weights 60% on the final grade.
Continuous assessment (40% of final grade):
- On-line quizzes and tests
- Reflective exercises
- Peer assessment of student publications
- Electronically submitted essays, reflective learning journals, blogs
- Collaborative projects
- Mandatory discussion participation
- Graded discussion moderation, summary or reflection
- Individually written assignments submitted electronically
Bibliography and resources
Main Bibliography:
Entrepreneurial Finance. J. Chris Leach, Ronald W. Melicher (2012).
Venture Capital, Private Equity, and the Financing of Entrepreneurship. Josh Lerner, Ann Leamon, Felda Hardymon (2012).
Recommended Supplemental Bibliography:
Raising Capital: Get the Money You Need to Grow Your Business. Andrew J. Sherman (2012).
Mastering the VC Game: A Venture Capital Insider Reveals How to Get from Start-up to IPO on Your Terms. Jeffrey Bussgang (2011).