MSING007B: ENTREPRENEURIAL FINANCE

Core Module Information:

Taught by:
Level:
Prerequisites:

Eligibility:
Terms:
Delivery method:
Assessment:
Itxaso del Palacio & Simon Hulme
Masters
None
Masters, MRes/PhD, PGT affiliate students from all departments
Term 2
3-hour lecture (x 10 weeks)
50% unseen 2-hour examination; 50% coursework

This module provides the requisite knowledge and skills to enable a student to understand the nature and characteristics of financial planning in the context of entrepreneurship. Contextually this involves the study of the nature, purpose and construction of financial planning and reporting statements; the financial risks/rewards of entrepreneurship and innovation; new venture financial models and strategies; typical funding sources; the development of business presentations to attract outside funding; the due diligence process; and the strategies for negotiations for funding. The module is divided in two parts. Initially the module covers the concepts needed to build the financial statements of a venture. It is also focused on evaluating the financial situation of a company and prepares students to make decisions based on financial ratios. The second part of the module is focused on understanding the process of raising external capital. This second part covers areas such as valuations of startups, due diligence processes, term sheets and negotiations with investors.

Several professional investors and entrepreneurs will be sharing their experience and knowledge with students. Students will be able to meet them and learn from their experiences.

By the end of this module, a successful student will have gained an appropriate knowledge and understanding of:

  • The nature of entrepreneurial finance
  • Theoretical and conceptual underpinning of and frameworks for accounting and financial management
  • Nature, purpose and characteristics of income statements, cash flow statements, balance sheets as financial reporting mechanisms
  • The use of financial ratios in measuring and interpreting financial performance
  • The financial risks/rewards of entrepreneurship
  • The construction of new venture financial models
  • The evaluation of alternative financing strategies
  • The development of a strategy to approach the right investors
  • The development of a deck and pitch to attract outside funding
  • An effective due diligence process
  • The design and negotiation of “deals” and term sheets
  • Financial statements
  • Financial ratios
  • Financial Modelling
  • Sensitivity analysis
  • Cash-Flow management
  • Sources of Capital
  • Valuations of start-ups
  • Pitching to Investors
  • Due diligence process
  • Term Sheets

50% unseen 2-hour examination; 50% coursework comprising:

i) An individual assessment, carrying 40% of coursework marks based on the first five weeks of study/teaching.

ii) An individual assessment, carrying 60% of coursework marks based on the second half of the course.

BERMAN, K. and KNIGHT, J. (WITH JOHN CASE) (2008): Financial Intelligence for Entrepreneurs, Harvard Business Review Press, 1st Edition, 284 pages. ISBN: 978-1-4221-1915-0.