Entrepreneurial Finance

Entrepreneurial Finance course is designed for students who are interested in gaining a broad understanding of the concepts and institutions involved in entrepreneurial finance (i.e., getting funding for a startup) and private equity markets (i.e., providing capital to startups by venture capitalists (VCs.) As such, the course provides a general overview of how to evaluate and finance a new, high-growth-potential venture over its life-cycle. The class covers how to break down the valuation problem of early-stage ideas, the sources of financing for young businesses, startup valuation methods, issues and strategies in venture fundraising, term sheets and how contract terms change over a business's life-cycle, potential exit strategies, the inner-workings of private equity industry and the incentives of different players. For each topic, we first learn tools and frameworks, then apply them in case studies and problem sets as well as discuss them with guest speakers (investors and entrepreneurs). Although the class covers the differences between angel and VC investors and examine pre-series A financing contracts, this course will not cover angel investing in depth --- it will focus more on VC financing in early- and later-stage companies as well as exits (M&A and IPOs). The class concludes with a group project that utilizes concepts learned throughout the semester: it involves putting together a pitch deck for a venture idea to be presented in front of venture investors.