Overview

This is an advanced training activity for would-be entrepreneurs who are serious about valuing and financing new ventures anywhere in the world. The theory of entrepreneurial finance is fully covered, followed by a jumbo case study that illustrates the application of the theory to an actual setting. We discuss the techniques appropriate for both developed and emerging markets. The course is taught from the entrepreneur’s perspective—namely, it is targeted to understand how value can be maximized for the entrepreneur. You will also come to fully understand the perspective of those who invest in new ventures—angels, venture capital and private equity (VC/PE) funds. But for a deeper insider’s view of the VC/PE industry, check the course “Venture Capital and Private Equity”.

Learning outcomes

When you successfully complete this course, you should be able to:

  • Define your minimum monetary goals (MMGs) as an entrepreneur
  • Compute the economic value of yourself as a human asset invested in a salaried job
  • Calculate the economic value of the venture opportunity
  • Decide whether you’d be better off by becoming an entrepreneur or by staying as a manager in a large corporation
  • Identify the sources of funds for new ventures and critically evaluate their pros and cons
  • Understand the psychology and practices of venture capitalists—the usual sources of capital for high-growth ventures
  • Read, analyze and negotiate a term sheet—the contract that regulates a financing deal for your venture