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JOHN CABOT UNIVERSITY

COURSE CODE: "FIN 335"
COURSE NAME: "Entrepreneurial Finance"
SEMESTER & YEAR: Spring 2020
SYLLABUS

INSTRUCTOR: Silvia Pulino
EMAIL: [email protected]
HOURS: TTH 11:30 AM 12:45 PM
TOTAL NO. OF CONTACT HOURS: 45
CREDITS: 3
PREREQUISITES: Recommended: FIN 301 for Business, International Business, and Economics
OFFICE HOURS:

COURSE DESCRIPTION:
Entrepreneurial activity is a powerful engine for growth in today’s economy. The financial issues confronting entrepreneurial firms are drastically different from those faced by established companies; this course is designed to address those unique financial issues and develop a set of skills appropriate for such situations. The course will be articulated in three main parts: 1) investment analysis – understanding sources of value, reading financial statements and using pro-forma models in the context of acquisitions; 2) financing the entrepreneurial firm – various sources of capital, including seed and angel financing, crowdfunding, venture capital and strategic alliances; 3) harvesting – investment exit strategies including IPOs and acquisition by a third party.

NOTE: the course is opened to all students interested in entrepreneurship. While some prior knowledge of finance will be helpful, the basic concepts will be covered in the course.
SUMMARY OF COURSE CONTENT:

The course will be articulated in three main parts: 1) Investment Analysis – understanding sources of value, reading financial statements and using pro-forma models in the context of acquisitions. 2) Financing the Entrepreneurial Firm – various sources of capital from angel financing to strategic alliances. 3) Harvesting – investment exit strategies including IPOs and acquisition by a third party.

LEARNING OUTCOMES:

At the end of the course students will be able to:                  

-          Determine which financial factors that affect entrepreneurial firms at various stages of development

-          Value early stage businesses and assess their funding requirements

-          Identify and select appropriate sources of finance according to the various stages of the entrepreneurial firm

-          Structure a financial contract so as to manage risk and align incentives

-          Apply analytical tools such as financial analysis, pro-forma modelling, capital budgeting, valuation methods, negotiation and deal structuring

-          Identify the problems faced by entrepreneurial firms, and quantify the impact that present-day financial decisions may have on the available range of future choices

-          Choose appropriate ways for an entrepreneur to “harvest” success and value, understanding the advantages and disadvantages of each

-          Take into account the possible motivations, objectives and considerations of all stakeholders

TEXTBOOK:
Book TitleAuthorPublisherISBN numberLibrary Call NumberCommentsFormatLocal BookstoreOnline Purchase
Course PackmultipleHarvard Business Publishingn/a Students will be required to purchase a course pack containing cases and additional material in lieu of a textbook.   
REQUIRED RESERVED READING:
NONE

RECOMMENDED RESERVED READING:
NONE
GRADING POLICY
-ASSESSMENT METHODS:
AssignmentGuidelinesWeight
1. CLASS PARTICIPATIONTHE GRADE FOR CLASS PARTICIPATION WILL BE BASED ON THE QUALITY OF STUDENTS’ PREPARATION, ANALYSIS OF ASSIGNED TEXTS, AND CONTRIBUTION TO CLASS DISCUSSION. ATTENDANCE IS MANDATORY. 15%
2. WRITTEN ASSIGNMENTSESSAYS AND CASES ASSIGNED THROUGHOUT THE COURSE25%
3. MID-TERM EXAMAN UNSEEN ESSAY AND/OR PROBLEMS RELATED TO THE TOPICS COVERED DURING THE FIRST PART OF THE TERM. 
4. FINAL EXAMANALYSIS OF A CASE35%

-ASSESSMENT CRITERIA:
AWork of this quality directly addresses the question or problem raised and provides a coherent argument displaying an extensive knowledge of relevant information or content. This type of work demonstrates the ability to critically evaluate concepts and theory and has an element of novelty and originality. There is clear evidence of a significant amount of reading beyond that required for the course.
BThis is highly competent level of performance and directly addresses the question or problem raised.There is a demonstration of some ability to critically evaluatetheory and concepts and relate them to practice. Discussions reflect the student’s own arguments and are not simply a repetition of standard lecture andreference material. The work does not suffer from any major errors or omissions and provides evidence of reading beyond the required assignments.
CThis is an acceptable level of performance and provides answers that are clear but limited, reflecting the information offered in the lectures and reference readings.
DThis level of performances demonstrates that the student lacks a coherent grasp of the material.Important information is omitted and irrelevant points included.In effect, the student has barely done enough to persuade the instructor that s/he should not fail.
FThis work fails to show any knowledge or understanding of the issues raised in the question. Most of the material in the answer is irrelevant.

-ATTENDANCE REQUIREMENTS:

Students are expected to come to class and to arrive on time.

Absences: NO absences allowed, for whatever reason, including illness, fingerprinting and travel. Up to 5 absences can be made up through the participation in activities outside the classroom, as indicated in Grade Enhancers below.  

Tardiness: students arriving more than 10 minutes late for class will be marked as absent (though they may stay and follow the lesson).

In any case, students are responsible for all material covered by the syllabus and/or discussed in class, whether or not they are actually present. 

GRADE ENHANCERS

Certain activities will count towards grade enhancement in the form of better class participation grade, enhancement of the overall grade (e.g. an A- becomes an A), or cancellation of an absence. Such activities include:

  1. Completion of the Bloomberg Certification.  This is valued by potential employers so it also counts as a CV/resume enhancer. For more information, ask Librarian Livia Piotto ([email protected]), or go directly to the Frohring Library in the Guarini Campus. 

  2. University open lectures that are relevant to the course, as indicated by the professor (as long as they do not clash with another course). Information regarding times and venues will be provided during the semester.

  3. Participation in one of the Library workshops on any of the following topics: 

  • Industry Research

  • Company Research

  • Business Citation Style

ACADEMIC HONESTY
As stated in the university catalog, any student who commits an act of academic dishonesty will receive a failing grade on the work in which the dishonesty occurred. In addition, acts of academic dishonesty, irrespective of the weight of the assignment, may result in the student receiving a failing grade in the course. Instances of academic dishonesty will be reported to the Dean of Academic Affairs. A student who is reported twice for academic dishonesty is subject to summary dismissal from the University. In such a case, the Academic Council will then make a recommendation to the President, who will make the final decision.
STUDENTS WITH LEARNING OR OTHER DISABILITIES
John Cabot University does not discriminate on the basis of disability or handicap. Students with approved accommodations must inform their professors at the beginning of the term. Please see the website for the complete policy.

SCHEDULE

 

 

Class

Topic

Preparation

 

Part I: Investment Analysis

Class 1

Course introduction

 

Classes 2, 3, 4 and 5

Sources of Value: business plans, valuation techniques, business models

Case: The Knot

Note: Introduction to Entrepreneurial Finance

Case: Technical Data Business Plan

Note: Some Thoughts on Business Plans

Classes 6, 7, 8 and 9

Understanding financial statements and pro-forma models

Case: Tutor Time (A)

Case: Fenchel Lampshade

Classes 10 and 11

Purchasing firms, buyouts and valuation

Case: Carlton Polish

Note: Valuation in Entrepreneurial Settings

 

Part II: Financing the Entrepreneurial Firm

Classes 12 and 13

Venture Capital: terms and negotiation

Case: Edocs

Note: Venture Capital

Classes 14 and 15

Angel Financing

Case: Honest Tea

Note: Angel Financing

Class 16

MIDTERM EXAMINATION

 

Class 17

Franchising

Case: Tutor Time (B)

Note: Franchising

Classes 18 and 19

Strategic Alliances

Case: Parenting Magazine

Note: Strategic Alliances

                        Part III: Harvesting

Classes 20, 21, 22, and 23

Initial Public Offer and due diligence

Case: Amazon.com

Case: ArthroCare

Note: Initial Public Offering Process

Classes 24, 25, and 26

Acquisition

Case: Technical Data 2 Years Later

Case: Nantucket Nectars

Class 27

COURSE WRAP UP

 

Class 28

FINAL EXAMINATION