Entrepreneurial Finance Sahlman by anr14138

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									       MGT/MGP 292 Topics in Corporate Finance: Entrepreneurial Finance

                                      Katrina Ellis


This class examines the elements of entrepreneurial finance, focusing on technology-
based start-up ventures, and the early stages of company development. It addresses key
questions which challenge all entrepreneurs: how much money can and should be raised;
when should it be raised and from whom; what is a reasonable valuation of the company;
and how funding should be structured.
The course is case-based, and will cover three major topics: Investment analysis (pro
forma models, real options analysis), Financing the entrepreneurial firm (venture capital,
angel financing, banks, strategic alliances), and Harvesting the rewards (IPOs,
acquisitions).

In this course you'll develop a strong framework of analysis for business opportunities,
enhance your valuation skills, learn what you can do to ensure the venture succeeds, and
gain a thorough understanding of the issues confronting today's entrepreneurial forms.

Textbook:

Entrepreneurial Finance: A Casebook, Paul Gompers and William Sahlman, Wiley 2002

Assessment:

Class participation           10%
2 Individual Case writeups    30%
2 Group Case writeups         30%
3 Individual Homeworks        30%

There is no final exam, but there is a steady workload throughout the course with work
due in every session (for the Friday class, this means 2 items are due each class meeting
time). Some of the assessment is individual, and some is in groups.
Readings
Textbook “Entrepreneurial Finance: A Casebook” Paul Gompers and William Sahlman

Textpack for MGT/MGP 292 available on study.net

   1. How Much Money Does Your New Venture Need?
      James McNeill Stancill
      Harvard Business Review
      Reprint 86314

   2. The Basic Venture Capital Formula
      William A. Sahlman
      HBS Note 9-804-042
      February004

   3. The Venture Capital Method – Valuation Problem Set
      HBS Note 9-396-090
      October 5, 1995

   4. How Venture Capital Works
      Bob Zider
      Harvard Business Review
      Reprint 98611

   5. Deal Structure and Deal Terms
      Michael Roberts, Howard Stevenson
      HBS Note 9-806-085
      November 7, 2005

   6. New Venture Financing
      Howard Stevenson, Michael Roberts
      HBS Note 9-802-131
      July 22, 2004
                    MGT – MONDAY CLASS SCHEDULE
Reading should be done prior to class in preparation for class discussion

10/1/07 Class
Chapter 1, Textbook: Introduction to Entrepreneurial Finance
Textpak: How much money does your new venture need?

10/8/07 Class
Spreadsheet homework #1 to be handed in
Chapter 2, Textbook: The Knot
Chapter 5, Textbook: Some thoughts on business plans

10/15/07 Class
Chapter 9, Textbook: A note on valuation in entrepreneurial ventures
Textpak: The basic venture capital formula
Chapter 12, Textbook: Record Masters


10/22/07 Class
Chapter 13, Textbook: Capital Projects as real options: an introduction
Chapter 15, Textbook: E-ink: Financing Growth – INDIVIDUAL CASE WRITEUP
10/29/07 Class
Homework #2 problems to be handed in
Chapter 17, Textbook: A note on private equity securities
Chapter 18, Textbook: edocs (A)
Textpak: How Venture Capital Works
Textpak: Deal Structure and Deal Terms
Textpak: New Venture Financing

11/5/07 Class
Chapter 19, Textbook: A note on angel financing
Chapter 20, Textbook: Honest Tea – GROUP CASE WRITEUP

11/19/07 Class
Chapter 26, Textbook: A note on strategic alliances
Chapter 27, Textbook: Parenting Magazine – INDIVIDUAL CASE WRITEUP

11/26/07 Class
Homework #3 problems to be handed in
Chapter 30, Textbook: A note on the initial public offering process
Chapter 32, Textbook: ArthroCare

12/3/07 Class
Chapter 34, Textbook: HIMsCORP – GROUP CASE WRITEUP
                     MGP – FRIDAY CLASS SCHEDULE
Reading should be done prior to class in preparation for class discussion

10/5/07 2-5pm
Chapter 1, Textbook: Introduction to Entrepreneurial Finance
Textpak: How much money does your new venture need?

10/5/07 6-9pm
Chapter 2, Textbook: The Knot
Chapter 5, Textbook: Some thoughts on business plans
Homework #1 to be emailed by Friday 10/19/07

10/19/07 is CANCELLED DUE TO A PRIOR COMMITMENT
On the first day of class we will decide between 2 makeup times – note only 3 hours, not 6
hours of makeup time is available
Sunday 10/21/07 or Friday 12/14/07

Sunday 10/21/07
Chapter 9, Textbook: A note on valuation in entrepreneurial ventures
Textpak: The basic venture capital formula
Chapter 12, Textbook: Record Masters

11/2/07 2-5pm
Homework problems #2 to be handed in
Chapter 13, Textbook: Capital Projects as real options: an introduction
Chapter 15, Textbook: E-ink: Financing Growth – INDIVIDUAL CASE WRITEUP
11/2/07 6-9pm
Chapter 17, Textbook: A note on private equity securities
Chapter 18, Textbook: edocs (A)
Textpak: How Venture Capital Works
Textpak: Deal Structure and Deal Terms
Textpak: New Venture Financing

11/16/07 2-5pm
Chapter 19, Textbook: A note on angel financing
Chapter 20, Textbook: Honest Tea – GROUP CASE WRITEUP
11/16/07 6-9pm
Chapter 26, Textbook: A note on strategic alliances
Chapter 27, Textbook: Parenting Magazine – INDIVIDUAL CASE WRITEUP

12/7/07 2-5pm
Homework #3 problems to be handed in
 Chapter 30, Textbook: A note on the initial public offering process
Chapter 32, Textbook: ArthroCare

12/7/07 6-9pm
Chapter 34, Textbook: HIMsCORP – GROUP CASE WRITEUP
12/14/07 2-5pm
Alternative Makeup Class

								
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