Credit hours
In-class work per week |
Practice per week |
Credits |
Duration |
Total |
4 |
2 |
8 |
15 weeks |
120 hours |
Instructor
Alex da Silva Alves
Objective
This course focuses on the challenges and financial issues relevant to the growth of New Emerging Enterprises (NEE) which, it is to say, are drastically different from those that confront established businesses. In particular, the focus of this course is to analyze the financial issues peculiar to SEN and to develop a set of analytical skills that will be widely applied in addressing these issues. Proper understanding of financial issues, as well as good use of these skills, will require a solid understanding of the logic, structure, conduct and performance of the financial and capital markets, and in particular the private equity and venture capital markets.
Content
Entrepreneurship and knowledge-based innovation; economic role of the entrepreneur and the capital market; conceptual contrast between Finance for Entrepreneurs and Corporate Finance; characteristics, agents, processes and techniques involving the private equity and venture capital market and industry; funding sources for start-ups - government funds, individual investors, seed capital funds and corporate venture capital; concepts and techniques for determining the financing needs of the fledgling company, initial valuation of the company and the portion to be sold, and structuring and negotiation of the terms of the investment contract.
Bibliography
Alexander Tauber, Note on Angel Financing. Graduate School of Business, Stanford University. August 1998.
Alok Prasad and Lucinde Linde. Angel Investing. Harvard Business School & MIT Soan School of Management. Feb. 2000.
Andy Waldeck. Note on Venture Capital Portfolio Management. Tuck School of Business. Dartmouth College. August 2003.
Bill Frezz. The Role of Venture Capital. Materials Research Society Bulletin, August 2002.
Bob Zider, How Venture Capital Works. Harvard Business Review, Nov.-Dec. 1998
Constance E Bagley and Craig Dauchy. Venture Capital. From The Entrepreneur’s Guide to Business Law. South-Western College Publishing, 1998.
Constance E Bagley. Legal Aspects of Entrepreneurship: A Conceptual Framework. Harvard Business School, Feb. 2002.
Daniel R Scherlis and William A Sahlman. A Method for Valuing High-Risk, Long-Term Investments: The Venture Capital Melhod. Harvard Business School. June 1989.
Felda Hardymon and Josh Lerner. A Note on Private Equity Securities. Harvard Business School. Dec. 1999.
Howard H Stevenson. A Perspective on Entrepreneurship.
James McNeill Stancill. How Much Money Does Your new Venture Need?. Harvard Business Review, 1986.
Luis Villalobos. Valuing Pre-revenue Companies. E Kauffman Foundation, July 2007
Michael J Martin, University Perspective on Commercialization of Intellectual Property. Industrial Research Institute, 2007
Multilateral Investment Facility (MIF/IDB). Investment Fund Performance Model. (Software)
Noam Wasserman. Venture Capital Negotiations: VC versus Entrepreneur. Harvard Business School. March 2000.
Note on Financial Contracting: “Deals”. Harvard Business School, June 1989.
Paul Gompers and Josh Lerner. 2001. The Venture Capital Revolution. Journal of Economic perspective, Vol. 15, No. 2.
Sarita Albagli e Maria Lúcia Maciel. Capital Social e Empreendedorismo Local. REDESIST. UFRJ. Setembro 2002.
Vikas Anand, William H Glick e Charles C Manz. 2002. CAPITAL SOCIAL: EXPLORANDO A REDE DE RELAÇÕES DA EMPRESA. Revista de Administração de Empresas, Vol. 42. No. 4
William Sahlman. Entrepreneurial Finance – Course Introduction. Harvard Business School. August 1997