Description
This document about entrepreneurial finance module.
Page 1 of 4
COURSE CODE
Entrepreneurial Finance
Module 1, 2015-2016
Course Information
Instructor: Seungjoon Oh
Office: PHBS Building, Room 749
Phone: 86-755-2603-2740
Email: [email protected]
Office Hour: Monday 2:00pm-3:00pm (or by appointment via email)
Teaching Assistant:
Phone:
Email:
Classes:
Lectures: Tue & Fri 1:30-3:20pm
Venue: PHBS Building, Room 319
(Course Website: )
1. Course Description
1.1 Context
Course overview:
The capital market for entrepreneurs is fundamentally different from the capital market for
public firms. The objective of this course is to provide an understanding of entrepreneurs’
financing decisions from the perspectives of both the entrepreneurs and the investors - venture
capital and private equity. This course will address how to evaluate entrepreneurial business
opportunities, structure financial decisions, and realize returns through IPO and M&A.
Prerequisites:
The course presumes that students have taken basic courses in accounting, economics,
finance and econometrics before taking this course. Students are recommended to have
completed the following courses: “Corporate Finance”.
1.2 Textbooks and Reading Materials
Lecture notes, assignments, cases and other useful information will be posted on the course
web page.
Text book: Entrepreneurial Finance by J. Chris Leach, and Ronald W. Melicher. 5th Edition,
2012, South-Western, Cengage Learning.
Reference text: Entrepreneurial Finance: Finance and Business Strategies for the Serious
Entrepreneur by Steven Rogers. 2
nd
Edition
Page 2 of 6
Reference text: Entrepreneurial Finance: Strategy, Valuation, and Deal Structure by Smith,
Smith, and Bliss, Stanford University Press
2. Learning Outcomes
2.1 Intended Learning Objectives / Outcomes
Learning Goals Objectives/Outcomes Assessment
1. Our graduates will be
effective
communicators.
1.1. Our students will produce quality
business and research-oriented documents.
1.2. Students are able to professionally
present their ideas and also logically explain
and defend their argument.
2. Our graduates will be
skilled in team work and
leadership.
2.1. Students will be able to lead and
participate in group for projects, discussion,
and presentation.
2.2. Students will be able to apply
leadership theories and related skills.
3. Our graduates will be
trained in ethics.
3.1. In a case setting, students will use
appropriate techniques to analyze business
problems and identify the ethical aspects,
provide a solution and defend it.
3.2. Our students will practice ethics in the
duration of the program.
4. Our graduates will
have a global
perspective.
4.1. Students will have an international
exposure.
5. Our graduates will be
skilled in problem-
solving and critical
thinking.
5.1. Our students will have a good
understanding of fundamental theories in
their fields.
5.2. Our students will be prepared to face
problems in various business settings and
find solutions.
5.3. Our students will demonstrate
competency in critical thinking.
2.2 Course specific objectives
2.3 Assessment/Grading Details
Assessment task Weighting
Mid-term Exam 80
Final Exam 100
Team project, case study discussion and assignments 50
Class participation 20
Total 250
Team Project:
Students will be asked to form teams of 4-5 individuals prior to the start of the second session
of the class to prepare a class presentation on a pre-specified topic. Presentations will start at
Page 3 of 6
week 6 and last until the end of the module. Your team project includes a final report which
should be turned in electronically on or before the last day of week 9. Each team should choose
one of the following topics:
? Topic 1: Venture Capital Investment
The objective of this project is to understand VC investment process by analyzing an
existing small to medium sized firm. You group will prepare a paper on potential VC
investment and present your valuation results and investment plan to the class. An
outline of the topics your paper should cover will be provided.
? Topic 2: IPO analysis
The objective of this project is to investigate the performance of Initial Public Offerings
after going public in the perspective of the investor and the firm. Your group should
choose an IPO company that have already gone public in the last 12 months or has filed
statements to go public, and analyze the offer price and the post-IPO performance. An
outline of the topics your paper should cover will be provided.
2.4 Academic Honesty and Plagiarism
It is important for a student’s effort and credit to be recognized through class assessment.
Credits earned for a student work due to efforts done by others are clearly unfair. Deliberate
dishonesty is considered academic misconducts, which include plagiarism; cheating on
assignments or examinations; engaging in unauthorized collaboration on academic work;
taking, acquiring, or using test materials without faculty permission; submitting false or
incomplete records of academic achievement; acting alone or in cooperation with another to
falsify records or to obtain dishonestly grades, honors, awards, or professional endorsement;
or altering, forging, or misusing a University academic record; or fabricating or falsifying of
data, research procedures, or data analysis.
All assessments are subject to academic misconduct check. Misconduct check may include
reproducing the assessment, providing a copy to another member of faculty, and/or
communicate a copy of this assignment to the PHBS Discipline Committee. A suspected
plagiarized document/assignment submitted to a plagiarism checking service may be kept in
its database for future reference purpose.
Where violation is suspected, penalties will be implemented. The penalties for academic
misconduct may include: deduction of honour points, a mark of zero on the assessment, a fail
grade for the whole course, and reference of the matter to the Peking University Registrar.
For more information of plagiarism, please refer to PHBS Student Handbook.
3. Topics, Teaching and Assessment Schedule
Week Topic
1-2
The Entrepreneurial Environment
Chapter1 Introduction to Entrepreneurial Finance
Chapter2 Developing the Business Idea
Page 4 of 6
2-3
Organizing and Operating the Venture
Chapter 3 Organizing and Financing a New Venture
Chapter 4 Preparing and using Financial Statements
Chapter 5 Evaluating Operating and Financial Performance
3-4
Planning for the Future
Chapter 6 Managing Cash Flow
Chapter 7 Types and Costs of Financial Capital
Chapter 8 Securities Law Consideration
5-6
Creating and Recognizing Venture Value
Chapter 9 Projecting Financial Statements
Chapter 10 Valuing Early-Stage Ventures
Chapter 11 Venture Capital Valuation Methods
Team Project Presentation
6-7
Structuring Financing for the Growing Venture
Chapter 12 Professional Venture Capital
Chapter 13 Other Financing Alternatives
Chapter 14 Security Structures and Determining Enterprise Values
Team Project Presentation
8-9
Exit and Turnaround Strategies
Chapter 15 Harvesting the Business Venture Investment
Chapter 16 Financially Troubled Ventures: Turnaround Opportunities
Team Project Presentation
doc_911118201.pdf
This document about entrepreneurial finance module.
Page 1 of 4
COURSE CODE
Entrepreneurial Finance
Module 1, 2015-2016
Course Information
Instructor: Seungjoon Oh
Office: PHBS Building, Room 749
Phone: 86-755-2603-2740
Email: [email protected]
Office Hour: Monday 2:00pm-3:00pm (or by appointment via email)
Teaching Assistant:
Phone:
Email:
Classes:
Lectures: Tue & Fri 1:30-3:20pm
Venue: PHBS Building, Room 319
(Course Website: )
1. Course Description
1.1 Context
Course overview:
The capital market for entrepreneurs is fundamentally different from the capital market for
public firms. The objective of this course is to provide an understanding of entrepreneurs’
financing decisions from the perspectives of both the entrepreneurs and the investors - venture
capital and private equity. This course will address how to evaluate entrepreneurial business
opportunities, structure financial decisions, and realize returns through IPO and M&A.
Prerequisites:
The course presumes that students have taken basic courses in accounting, economics,
finance and econometrics before taking this course. Students are recommended to have
completed the following courses: “Corporate Finance”.
1.2 Textbooks and Reading Materials
Lecture notes, assignments, cases and other useful information will be posted on the course
web page.
Text book: Entrepreneurial Finance by J. Chris Leach, and Ronald W. Melicher. 5th Edition,
2012, South-Western, Cengage Learning.
Reference text: Entrepreneurial Finance: Finance and Business Strategies for the Serious
Entrepreneur by Steven Rogers. 2
nd
Edition
Page 2 of 6
Reference text: Entrepreneurial Finance: Strategy, Valuation, and Deal Structure by Smith,
Smith, and Bliss, Stanford University Press
2. Learning Outcomes
2.1 Intended Learning Objectives / Outcomes
Learning Goals Objectives/Outcomes Assessment
1. Our graduates will be
effective
communicators.
1.1. Our students will produce quality
business and research-oriented documents.
1.2. Students are able to professionally
present their ideas and also logically explain
and defend their argument.
2. Our graduates will be
skilled in team work and
leadership.
2.1. Students will be able to lead and
participate in group for projects, discussion,
and presentation.
2.2. Students will be able to apply
leadership theories and related skills.
3. Our graduates will be
trained in ethics.
3.1. In a case setting, students will use
appropriate techniques to analyze business
problems and identify the ethical aspects,
provide a solution and defend it.
3.2. Our students will practice ethics in the
duration of the program.
4. Our graduates will
have a global
perspective.
4.1. Students will have an international
exposure.
5. Our graduates will be
skilled in problem-
solving and critical
thinking.
5.1. Our students will have a good
understanding of fundamental theories in
their fields.
5.2. Our students will be prepared to face
problems in various business settings and
find solutions.
5.3. Our students will demonstrate
competency in critical thinking.
2.2 Course specific objectives
2.3 Assessment/Grading Details
Assessment task Weighting
Mid-term Exam 80
Final Exam 100
Team project, case study discussion and assignments 50
Class participation 20
Total 250
Team Project:
Students will be asked to form teams of 4-5 individuals prior to the start of the second session
of the class to prepare a class presentation on a pre-specified topic. Presentations will start at
Page 3 of 6
week 6 and last until the end of the module. Your team project includes a final report which
should be turned in electronically on or before the last day of week 9. Each team should choose
one of the following topics:
? Topic 1: Venture Capital Investment
The objective of this project is to understand VC investment process by analyzing an
existing small to medium sized firm. You group will prepare a paper on potential VC
investment and present your valuation results and investment plan to the class. An
outline of the topics your paper should cover will be provided.
? Topic 2: IPO analysis
The objective of this project is to investigate the performance of Initial Public Offerings
after going public in the perspective of the investor and the firm. Your group should
choose an IPO company that have already gone public in the last 12 months or has filed
statements to go public, and analyze the offer price and the post-IPO performance. An
outline of the topics your paper should cover will be provided.
2.4 Academic Honesty and Plagiarism
It is important for a student’s effort and credit to be recognized through class assessment.
Credits earned for a student work due to efforts done by others are clearly unfair. Deliberate
dishonesty is considered academic misconducts, which include plagiarism; cheating on
assignments or examinations; engaging in unauthorized collaboration on academic work;
taking, acquiring, or using test materials without faculty permission; submitting false or
incomplete records of academic achievement; acting alone or in cooperation with another to
falsify records or to obtain dishonestly grades, honors, awards, or professional endorsement;
or altering, forging, or misusing a University academic record; or fabricating or falsifying of
data, research procedures, or data analysis.
All assessments are subject to academic misconduct check. Misconduct check may include
reproducing the assessment, providing a copy to another member of faculty, and/or
communicate a copy of this assignment to the PHBS Discipline Committee. A suspected
plagiarized document/assignment submitted to a plagiarism checking service may be kept in
its database for future reference purpose.
Where violation is suspected, penalties will be implemented. The penalties for academic
misconduct may include: deduction of honour points, a mark of zero on the assessment, a fail
grade for the whole course, and reference of the matter to the Peking University Registrar.
For more information of plagiarism, please refer to PHBS Student Handbook.
3. Topics, Teaching and Assessment Schedule
Week Topic
1-2
The Entrepreneurial Environment
Chapter1 Introduction to Entrepreneurial Finance
Chapter2 Developing the Business Idea
Page 4 of 6
2-3
Organizing and Operating the Venture
Chapter 3 Organizing and Financing a New Venture
Chapter 4 Preparing and using Financial Statements
Chapter 5 Evaluating Operating and Financial Performance
3-4
Planning for the Future
Chapter 6 Managing Cash Flow
Chapter 7 Types and Costs of Financial Capital
Chapter 8 Securities Law Consideration
5-6
Creating and Recognizing Venture Value
Chapter 9 Projecting Financial Statements
Chapter 10 Valuing Early-Stage Ventures
Chapter 11 Venture Capital Valuation Methods
Team Project Presentation
6-7
Structuring Financing for the Growing Venture
Chapter 12 Professional Venture Capital
Chapter 13 Other Financing Alternatives
Chapter 14 Security Structures and Determining Enterprise Values
Team Project Presentation
8-9
Exit and Turnaround Strategies
Chapter 15 Harvesting the Business Venture Investment
Chapter 16 Financially Troubled Ventures: Turnaround Opportunities
Team Project Presentation
doc_911118201.pdf