Overview

This is an advanced training activity for would-be entrepreneurs that are serious about valuing and financing new ventures. 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 understand, by necessity, the perspective of those who invest in new ventures; angel investors and venture capital and private equity (VC/PE) funds. (For a detailed perspective on the workings of the VC/PE industry itself, 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 your venture and quantify its financing needs
  • Assess the size of the downside risks entailed by launching your venture, and decide whether you’d be better off by becoming an entrepreneur—or by staying as a manager in a large corporation.
  • Understand the psychology and practices of venture capitalists—the usual sources of capital for high-growth new ventures—and learn how to read a term sheet—the terms and conditions that regulate a financing deal for your venture