This class exists in these courses :
• IÉSEG > IESEG Degree - Programme Grande École > Semester 1 > 2,00 ECTS

Prerequisites

The students should understand the basics of finance and accounting, including the interpration of balance sheets, income statements and cash flow statements.

Learning outcomes

At the end of the course, the student should be able to:
(1) understand a venture’s life cycle and its associated financial needs, (2) understand and apply how cash is built and burnt, (3) use financial statements and apply breakeven analysis for new and growing ventures, (4) understand how an entrepreneurial venture quantifies its vision of the future through long-term financial planning, (5) understand and apply the basic concepts of value and valuation, (6) understand and apply specific valuation methods used by venture capitalists, and (7) understand the importance of venture capital for new and growing ventures.

Course description

The primary objective of the course is to introduce theories, knowledge, and tools for the financing of new and growing ventures. This objective is achieved through assigned readings, class discussions, in-class exercises, and assigned exercises. Successful venture growth requires the ability to evaluate ongoing financial performance and prepare financial plans to anticipate funding needs and build venture value. A second objective of the course is to familiarize you with the importance of venture capital for entrepreneurs, and how venture capitalists and entrepreneurs can build effective relationships with each other. This objective will be achieved through article reading and class discussion.

Class type

Class structure

Teaching methods

• Case study
• Coaching
• E-learning
• Interactive class
• Seminar

Assessment

Evaluation as follows:
70% Final exam
15% Individual assignment
15% Class participation

Recommended reading

• Entrepreneurial Finance (Leach and Melicher, Thomson South-Western, 4th Edition), selected chapters -

• Article 1: An Entrepreneur’s Guide to the Venture Capital Galaxy (Academy of Management Perspectives) -

• Article 2: Myths about Venture Capitalists (Harvard Business Review) -

• Article 3 : Firm and Group Influences on Venture Capital Firms’ Involvement in New Ventures (Journal of Management Studies) -

• Case Element Bars -