This course will introduce the methodologies used in entrepreneurial finance and employ the case method to study VC deals. Venture capital is a great lab to study important topics in finance such as start-up financing, innovation, corporate governance, valuation, capital structure, and organizational restructuring. Throughout the course, new venture deals will be discussed from the perspective of different agents including entrepreneurs, angel investors, and VC fund managers. The course is going to start with the identification of entrepreneurial opportunities and early stage investments by angel investors. Then, we will investigate early stage investments by VC funds. The objective in that section will be to analyze a VC investment opportunity from a qualitative and quantitative perspective. We will also study exits by VCs. Later, we will discuss leveraged buyout investments in large companies. We will discuss how buyout funds choose and value their investments. In the last part of the course, we will study investments in VC funds and issues related to structuring VC funds.
Entrepreneurship and Venture Capital (FIN 407)
| Programs\Type | Required | Core Elective | Area Elective |
| Entrepreneurship Minor | * | ||
| Finance Minor | * | ||
| Management | * | ||
| Management | * |
CONTENT
OBJECTIVE
Learning objectives:
? To understand the challenges that entrepreneurs face during their search for early-stage funding.
? To understand the similarities and differences of different investment sources such as angel
investors, crowdfunding, and venture capital funds.
? To gain the knowledge of key venture capital terms and concepts.
? To be able to analyze a venture capital opportunity from a qualitative and quantitative perspective.
? To understand VC deal structure and term sheets.
? To understand the ways in which VCs can add value to the companies they invest in, and critically assess this ability in different contexts.
? To understand the motives of corporate venture capitalists such as Google Ventures.
? To understand the funding structure of VC partnerships.
? To be able to evaluate the VC fund investment opportunities from the perspective of institutional investors (aka limited partners in VC funds).
LEARNING OUTCOMES
PROGRAMME OUTCOMES
1. Understand the world, their country, their society, as well as themselves and have awareness of ethical problems, social rights, values and responsibility to the self and to others. 4
2. Understand different disciplines from natural and social sciences to mathematics and art, and develop interdisciplinary approaches in thinking and practice. 3
3. Think critically, follow innovations and developments in science and technology, demonstrate personal and organizational entrepreneurship and engage in life-long learning in various subjects; have the ability to continue to educate him/herself. 5
4. Communicate effectively in Turkish and English by oral, written, graphical and technological means. 5
5. Take individual and team responsibility, function effectively and respectively as an individual and a member or a leader of a team; and have the skills to work effectively in multi-disciplinary teams. 5
1. Have an understanding of economics and main functional areas of management
2. Have a basic all-around knowledge in humanities, science, mathematics, and literature
3. Have a basic knowledge of law and ethics, awareness of social and ethical responsibilities
4. Work effectively in teams and environments characterized by people of diverse educational, social and cultural backgrounds
5. Demonstrate proficiency in oral and written communications in English
6. Pursue open minded inquiry and appreciate the importance of research as an input into management practice; thus, a.know how to access, interpret and analyze data and information by using current technologies b.use the results from analyses to make informed decisions
7. Use office softwares for written communication, presentation, and data analysis
8. Demonstrate awareness that business settings present different opportunities and challenges for managers due to environmental/contextual differences that arise in economic, political, cultural, legal-regulatory domains
Update Date:
ASSESSMENT METHODS and CRITERIA
| Percentage (%) | |
| Final | 25 |
| Midterm | 25 |
| Case Study | 30 |
| Participation | 20 |
RECOMENDED or REQUIRED READINGS
| Readings |
Notes will be shared on the course web. |
| Cases | HBS cases. |