Financial Economics
Main language of instruction: English
Head instructor
Dr. Ioannis PIERRAKIS - ipierrakis@uic.es
Office hours
Upon appointment: ipierriakis@uic.es
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.
- Basic skills in finance and accounting.
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.
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.
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.
Lectures
Practical classes
Self-learning activities
Supervised work
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: Case studies and Role Plays; 40% of final grade.
Final Grade: The resulting mark will be weighted according to the attendance, with an allowance of one missed session. It's not possible to pass de subject with an attendance percentage of 80% or lower.
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).