Entrepreneurial Finance

The course primarily examines the financial economics of entrepreneurial settings, while also integrating issues from microeconomics, macroeconomics, strategy, organization, and control. We explore questions from multiple perspectives, often contrasting the positions of entrepreneurs and investors. Topics covered include deal structure, incentive design, valuation of high-risk projects, financial management in rapidly growing firms, initial public offerings, and trade sales. We consider various capital suppliers, including informal risk capital, commercial banks, angel investors, venture capital firms, private equity firms, and investment banks. Throughout the course, analytical tools will be introduced and utilized. Financial analysis, various valuation methods, negotiations, and deal structuring will be examined in the context of entrepreneurial firms. In addition, investment analysis and due diligence will be explored. Through various case studies, the course covers all stages of the financing process, from startup to harvest and exit.

Requested Material - HBS cases

Readings - Several articles

This course is designed to introduce students to entrepreneurial finance and private equity, including angel and venture capital, growth equity, and exits. Over the last 30 years, growth in private capital markets and the perceived importance of high-growth entrepreneurial projects has been spectacular. The primary goal of the course is to familiarize students with the financial and organizational challenges typical of start-up and growing private companies and to provide an understanding of the concepts and institutions involved in private capital markets. To achieve this goal, the course is broad and comprehensive.

In presence

In class with exercises, presentations, projects and case studies.

Final written exam (35%), cases (20%), project (25%), and participation (20%).