Школа инноватики и предпринимательства НИУ ВШЭ

Кто читает:: Школа инноватики и предпринимательства (Учебные подразделения)

Статус:: Курс по выбору

Когда читается:: 2-й курс, 1 модуль

Преподаватель

Abstract

This course considers financing decisions of entrepreneurial firms, especially of ventures in high-tech industries at early stages of life cycle. Opacity and specificity of such firms create additional barriers for funding and require better understanding of the financing landscape for such companies. This course discusses available sources of capital through life cycle stages of the firms and introduces specific tools for management of uncertainty and asymmetry of information in their funding decisions. Special attention is paid to venture capital firms and their value addition to portfolio companies.This course will provide students with theoretical concepts of entrepreneurial finance and demonstrate real-life problems facing new ventures. The course will cover questions of venture financing from the perspectives of both entrepreneurs and investors.

Learning Objectives

Explain special aspects of funding new ventures as opposed to financing of mature companies considered in standard corporate finance theory
Explain the difference between types of new venture investors
Provide students with a framework for making decisions about financing of a new venture from entrepreneur’s and investor’s points
Prepare students to make effective presentations of investment opportunities from entrepreneur’s and investor’s side

Expected Learning Outcomes

Analyze and compare financing choices for new ventures, including types and sources of financing
Identify exit strategies and explain venture harvesting processes
Develop communication and presentation skills for capital raising, formulating business plan, strategies
Build financial forecasts for new ventures under uncertainty
To make effective and well-timed decisions about new venture financing and harvesting

Course Contents

Introduction. New venture finance vs. Corporate Finance. Life-cycle of the company
Entrepreneurial characteristics and teams. Corporate governance in entrepreneurial firms. Moral hazard and adverse selection.
Sources of financing across the life cycle. Capital structure and financing choices of new ventures.
Unit economics and start-up metrics.
Business plan, investment memorandum and pitch deck
Business models, revenue forecasting, market sizing and assessment of financial needs.
New venture valuation. Real option valuation. Entrepreneur’s and venture capital fund’s perspective on valuation
Venture capital and private equity finance: organization, investment selection. Government venture funds
Deal terms. Incentive problems, information problems. Contract design. Exit options. Turnaround strategies
Exit and harvesting.

Assessment Elements

In-class company presentation
Class participation and in-class exercises
In-class problem-solving exercise
Valuation exercise
Final pitch of a new venture
Peer review of the final pitches

Interim Assessment

2026/2027 1st module
0.1 * Peer review of the final pitches + 0.1 * In-class company presentation + 0.15 * In-class problem-solving exercise + 0.2 * Class participation and in-class exercises + 0.3 * Final pitch of a new venture + 0.15 * Valuation exercise

Bibliography

Recommended Core Bibliography

Corporate venture capital: From venturing to partnering. (2011). Oxford University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsnar&AN=edsnar.oai.tilburguniversity.edu.publications.24469b84.7f76.4eb1.b08f.68d072811ab8
Miranda S. Lam, & Gina Vega. (2020). Entrepreneurial Finance : Concepts and Cases. Routledge.

Recommended Additional Bibliography

Venture capital and the finance of innovation, Metrick, A., 2011

Authors

Guseva Olga Aleksandrovna

New Venture Financing