FINANCING STARTUPS AND SMES

FIN2FSS

2019

Credit points: 15

Subject outline

In this subject you will consider the funding of small and medium ventures, from seed funding, through start-up and mezzanine rounds, to a possible Initial Public Offering (IPO).  You will explore the sourcing, structuring, negotiation, value creation and exit strategies involved from both the viewpoint of the entrepreneur and the investor.  Finally, you will consider the effect of new technologies, such as the internet, cloud computing and blockchain, on the venture capital process, so as to be able to take advantage of new ways of raising capital as the capital market itself innovates and evolves.



SchoolLa Trobe Business School

Credit points15

Subject Co-ordinatorGreg Jamieson

Available to Study Abroad StudentsYes

Subject year levelYear Level 2 - UG

Exchange StudentsYes

Subject particulars

Subject rules

PrerequisitesN/A

Co-requisitesN/A

Incompatible subjectsN/A

Equivalent subjectsN/A

Special conditionsN/A

Graduate capabilities & intended learning outcomes

01. Compare and contrast the various forms and sources of finance available for entrepreneurial, small and medium sized ventures.

Activities:
Class discussion and a comparative analysis of various forms of finance available for entrepreneurial, small and medium sized ventures.
Related graduate capabilities and elements:
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

02. Analyse the effects of technical innovation in venture capital markets.

Activities:
Case study analysis
Related graduate capabilities and elements:
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)

03. Advise on the commercial structure of financial contracts and term sheets, including the staging and syndication of deals, board representation, restrictive covenants, and confidentiality agreements.

Activities:
Class discussion and negotiation game
Related graduate capabilities and elements:
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)

04. Apply valuation techniques appropriate for various types of entrepreneurial firms and financial securities.

Activities:
Spreadsheet modelling
Related graduate capabilities and elements:
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

05. Compare and contrast the different strategies available for a venture capital investor to exit the investment.

Activities:
Case study analysis
Related graduate capabilities and elements:
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)

06. Develop a financial business case for a business.

Activities:
Case study analysis
Related graduate capabilities and elements:
Literacies and Communication Skills (Quantitative Literacy)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)

Subject options

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Start date between: and    Key dates

Melbourne, 2019, Semester 2, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorGreg Jamieson

Class requirements

Lecture Week: 31 - 43
One 1.0 hours lecture per week on weekdays during the day from week 31 to week 43 and delivered via face-to-face.

WorkShop Week: 32 - 43
One 2.0 hours workshop per week on weekdays during the day from week 32 to week 43 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
Individual case study 1 (500 words)10 02
Individual case study 2 (1,000 words)30 06
Group negotiation simulation500 words equivalent10 03
2-hour final examination2,000-word equivalent50 01, 04, 05