JOHN CABOT UNIVERSITY

COURSE CODE: "FIN 335"
COURSE NAME: "Entrepreneurial Finance"
SEMESTER & YEAR: Spring 2024

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: By appointment

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 Title	Author	Publisher	ISBN number	Library Call Number	Comments	Format	Local Bookstore	Online Purchase
Entrepreneurial finance: fundamentals of financial planning and management for small business.	Alhabeeb, M.J	John Wiley & Sons	NA		Available online through the library.

REQUIRED RESERVED READING:

NONE

RECOMMENDED RESERVED READING:

NONE

GRADING POLICY
-ASSESSMENT METHODS:

Assignment	Guidelines	Weight
1. CLASS PARTICIPATION	THE 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 ASSIGNMENTS	ESSAYS AND CASES ASSIGNED THROUGHOUT THE COURSE	25%
3. MID-TERM EXAM	AN UNSEEN ESSAY AND/OR PROBLEMS RELATED TO THE TOPICS COVERED DURING THE FIRST PART OF THE TERM.	25%
4. FINAL EXAM	ANALYSIS OF A CASE	35%

-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:

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.
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.
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

INDICATIVE SCHEDULE

CLASS	SECTION / Topic
1	I. OPPORTUNITY EVALUATION and BUSINESS MODELING ANALYSIS Introduction.
2	Applying the POCD framework. Assessing an entrepreneurial investment. Understanding the sources of value in an opportunity. Apply to a startup of choice.
3	Business Model Analysis PACADI framework for case analysis
4	Case: DINr, My First Startup
5	II. SHAPING BUSINESS PLANS Review of financial statements and financial statement analysis.
6	Kellogg’s assignment Capital Structure Review
7	Business Plans and Shark Tank exercise
8	Case: Pack-ITS
9	Case: Pack-iTS (continued) and financial statements test
10	III. VALUATION METHODS Overview of valuation methods.
11	DCF Valuation.
12	SPEAKER
13	SPEAKER
14	Seed financing
15	Elevator Pitch Workshop.
16	CCF and VC Valuation Methods.
17	Case: PlanetTran
18	III. FINANCING THE FIRM Sources of funds in the entrepreneurial journey
19	Case: Little Green Kid Bootstrapping. Creating new market categories. Scale-up strategies.
20	Venture Capital.
21	Case: Jonathan Miller Energy Bars Sources of funds: friends and family, angel money and venture capital.
22	IV. HARVESTING Evaluating venture capital term sheets.
23	GUEST SPEAKER
24	The IPO process
25	Strategic alliances
26	Comprehensive Case
27	Comprehensive Case (continued)
28	REVIEW
	FINAL EXAM