Course Learning Objectives
The startup scene worldwide is exploding, with ever more startups disrupting markets and bringing change to society on a grand scale. This poses some concrete business and real-life challenges: How do these startups finance growth? How does financing contribute to a startup's success, generate economic benefits and innovation? How do entrepreneurs manage to attract interest from investors? How can investors pick winners? Moreover, making sense of the complex world of entrepreneurial finance and understanding the dynamic implications and consequences of financing choices in rapidly evolving competitive environments is not only important for investors but also managers of incumbent firms, employees, and consumers. Yet entrepreneurial finance can also be confusing and complex, full of jargon, not to mention lots of hype.
This course exposes you to core concepts and players of entrepreneurial finance. The main goal is to understand how entrepreneurial ventures are funded by providing a deep understanding of the fundraising process and cycle, from the moment the entrepreneurs conceived their idea to the moment investors exit the company and move on. To understand not only what is happening but also why it is happening, we will examine the economics of entrepreneurship, the evaluation of startups from different points of view, and will discuss the role and characteristics of different types of financing sources and activities, including crowdfunding, business angels, venture capital, and corporate venturing.
At the end of the course, students will have a more profound understanding of
- The economics of entrepreneurship
- Risks and returns of startups as an asset class
- The evaluation of startups
- The basics of startup valuation
- The fundamental structure of different players in entrepreneurial finance
To achieve the objectives, the course is based on a mix of lectures, class discussions, individual and group exercises, and external talks.
