New ventures are subjected to high risks. It is estimated that over two thirds of new business would fail within ten years. As an important approach to help new ventures succeed, entrepreneurial financing becomes increasingly important for both entrepreneurs and investors. Our main motivation in this course is to lead you through the entrepreneurial financing process and provide you approaches to solve the financial problems in starting and growing new ventures.
This course would include both theory introduction and case analyses. We use cases and scenario analysis throughout the course with an emphasis on applications. We expect that you would be able to establish your own pro forma financial statement, financial needs assessment, valuation and contract design after you have finished learning this course.
This course will be taught by three professors from Central University of Finance and Economics, they are, Prof. Jing Zhongbo, Prof. Gao Ting, and me, Qu Hongyan. As a team, we have extensive teaching and research experience in areas of entrepreneurship and investment.
So, this course is a great chance for you to know about entrepreneurial financing, and to be able to do it by yourself. Here we invite you to enroll in the course and start our entrepreneurial financing journey now!
0. Introduction
0. Introduction
1. Introduction to Entrepreneurship and Venture Capital
1.1 What Is Entrepreneurship?
1.2 What Is Venture Capital?
1.3 Who Should Learn About This Course?
Quiz-Introduction to Entrepreneurship and Venture Capital
2. Entrepreneurial Financing Through the Venture Life Cycle
2.3 Equity Financing Through the Venture Life Cycle
2.2 The Venture Life Cycle
2.1 What Is Entrepreneurial Financing?
2.4 Other Sources of Entrepreneurial Financing
Quiz-Entrepreneurial Financing Through the Venture Life Cycle
3. Financial Forecasting (1)
3.3 Revenue Forecasting
3.1 Benefits of Financial Forecasting
3.2 Principals of Financial Forecasting
3.4 Expense Forecasting
Quiz-Financial Forecasting (1)
4. Financial Forecasting (2)
4.4 Creating The Model
4.2 The Cash Conversion Cycle
4.3 Working Capital, Growth and Financial Needs
4.1 Pro Forma Financial Statements
Quiz-Financial Forecasting (2)
5. Assessing Financial Needs
5.4 Scenario Analysis
5.5 Summary
5.3 Cash Flow Breakeven Analysis
5.1 Introduction
5.2 Sustainable Growth
Quiz-Assessing Financial Needs
6. Introduction and Discounted Cash Flow Valuation
Quiz
6.7Example of the CEQ approach
6.3.1 the discounted cash flow model
6.8Summary
6.4The Risk-Adjusted Discount Rate Approach
6.5The Certainty Equivalent Approach
6.3.2Other valuation models
6.6 The Certainty Equivalent Approach-2
Discussions
6.1 Perspectives on the Valuation of New Ventures
6.2 Myths about New Venture Valuation
7. Other Valuation Models and consistency
7.2 Valuation by the Venture Capital Method
7.5 Required Rates of Return for Investing in New Ventures
7.4 Reconciliation with the Pricing of Options
7.6 Matching Cash Flows and Discount Rates
7.3 Valuation by the First Chicago Method
Reading materials
7.7 Summary
7.1 An Illustration of the Relative Value Method
Quiz
8.The Continuing Value and DCF
Reading Materials
8.1 Implementing the Continuing Value Concept
8.3 risk-free rate and market risk premium
8.5 Estimating the standard deviation and correlation
8.7 Testing the Consistency of Assumptions
8.4 Estimating the New Venture Beta
8.2 Parameters estimation
8.6 shortcuts
8.8 A Caveat
Quiz
9.An Illustration in Practice
9.1 New Venture Valuation- An Illustration
9.4 Using the Relative Value Method
9.3 Comparing the CEQ and RADR Approaches
9.2 Using the CEQ Form of the CAPM
9.8 Summary
9.5 Using the Venture Capital Method
9.7 The Cost of Capital for Foreign Investors
9.6 Using the First Chicago Method
Quiz
10. Deal Structure and Contract Design
10.3 Attached Terms and Investor Rights
10.5 Funding Milestone
10.2 Types of Investment
10.4 Negotiation
10.1 Introduction to Term Sheet
Quiz-Deal Structure and Contract Design
12. Harvesting
12.3 Acquisition
12.2 Going Public
12.7 Summary
12.6 The Harvesting Decision
12.5 Employee Stock Ownership Plans
12.4 Management Buyout
12.1 Introduction
Quiz-Harvesting
11. Choice of Financing
11.2 Steps of Financing Decision
11.3 Additional Influencing Factors of Financing Choices
11.1 An Overview of the Financing Decision-Making
Quiz - Choice of Financing
13. Introduction to Corporate Venture Capital (CVC)
13.3 How do CVC Invest in Entrepreneurial Ventures
13.2 Comparisons between CVC, IVC and GVC
13.1 What is CVC
Quiz -Introduction to Corporate Venture Capital
14. Value Creation of CVC and Development of CVC Market
14.1 Value Creation of CVC for Investors
14.3 Development of CVC Market
14.2 Value Creation of CVC for Entrepreneurial Ventures
