SUBJECT OUTLINE 25733 Finance for Entrepreneurs

SUBJECT OUTLINE

25733 Finance for Entrepreneurs

Subject description

This subject provides students with knowledge about entrepreneurial finance from the perspectives of founders, early employees and outside investors. Students study financing aspects at all stages, from the inception of a start-up to an entrepreneur’s exit.

Subject learning objectives (SLOs)

Upon successful completion of this subject students should be able to:

  1. develop and evaluate finance structure arrangements at all stages of entrepreneurial ventures
  2. critically evaluate financial component metrics and milestones of a startup
  3. identify and evaluate exit strategies

Contribution to the development of graduate attributes

This subject furnishes students with the financial skills involved in setting up and running an entrepreneurial venture as well as advising founders, and working in or investing in an early stage company. Students identify and assess financing sources, methods of financial management and exit strategies from the perspective of a founder. Students also examine methods of evaluating all stages (from a startup to an exit) from the perspective of an advisor or an outside investor. The subject contributes to the overall objectives by developing skills that can lead to successful critical analysis of the financing component in entrepreneurial ventures.

Teaching and learning strategies

The teaching methods include formal lectures integrated with discussion of stories and short cases. Assignments provide students with projects to address and develop key understanding of objectives and a final exam tests all knowledge attained in the subject.

Content (topics)

Content (topics)

Different entrepreneurial business structures

Rates of return and risk for outside investors

Financing sources-venture capitalist; business angels; grants; entrepreneurs own finance (bootstrapping); private equity; accelerators/incubators

Valuation of startup at each stage: pre-seed, seed, startup, expansion and IPO

Analysing performance- metrics and key ratios

Entrepreneurial financial failure

Alternate exit strategies for the entrepreneur

Program

Week/Session      Dates               Description

1 22 February Introduction to the entrepreneurial process

Developing the business idea

2 1 March Architecture of financially sound ideas

Notes:

First assessment distributed 1 March

3 8 March Types of business models
4 15 March Organising and financing new ventures

Notes:

First assessment due 23:59 Wednesday 17 March

5 22 March Cash flow management
6 29 March Financial statements and early stage startup valuation
VC week 5 April no class
7 12 April Venture capital and what investors look for in pitching

Notes:

Second assessment distributed 12 April

8                             19 April              Creative and supplemental financing options

9                            26 April Scaling and pivoting

Notes:

Second assessment due 23:59 Wednesday 28 April

10                          3 May Turning around a troubled venture
  • 10 May The exit: Harvesting the venture
  • 11 May Revision class held at noon via Zoom

Notes:

Third assessment distributed after revision class on 11 May and due 24 hours later on 12 May

Additional information

There will be some pre-class material that you need to access in advance of the live Zoom classes to get the most out of class. All material will be placed on Canvas.

There will be guest speakers most classes and they are an integral part of the subject so please do any pre-reading and come to the class and contribute to the discussion and questions. Students have typically found this the most rewarding part of the subject as they build their network and get real-world insights from the guest speakers. Please ensure you have a developed LinkedIn profile before class so that you can research the guest speakers.

Assessment

Assessment criteria will be provided with assignment guides when distributed.

Assessment task 1: Assignment 1 (Individual)

Objective(s): This addresses subject learning objective(s):

1

Weight: 30%
Due: Wednesday 17 March 2021
Further information: The first assessment will be distributed after the class on 1 March and be due on Wednesday 17 March before midnight.

Assessment task 2: Assignment 2 (Individual)

Objective(s):    This addresses subject learning objective(s):

2

Weight: 30%
Due: Wednesday 28 April 2021
Further The first assessment will be distributed after the class on 12 April and be due on Wednesday 28

Further The first assessment will be distributed after the class on 12 April and be due on Wednesday 28 information:       April before midnight.

Assessment task 3: Final exam (Individual)

Objective(s): This addresses subject learning objective(s): 1, 2 and 3

Weight:             40%

Task:                Open-book 24 hour take-home exam will be provided this semester administered by Canvas or via direct email in Week 11 distributed on Tuesday 11 May immediately after a special review class at noon.

Due:                   Wednesday 12 May 2021

Minimum requirements

Students must achieve at least 50% of the subject’s total marks.

Recommended texts

Leach, J. Chris and Melicher, Ronald W., Entrepreneurial Finance, South-Western (Cengage Learning), 5th edition. 2015 ISBN-13: 978-1-285-42575-7

Academic liaison officer

Dr Robert Czernkowski, Accounting Discipline Group, telephone 9514 3736

Dr Mario Fiorini, Economics Discipline Group, telephone 9514 3339

Dr Otto Konstandatos, Finance Discipline Group, telephone 9514 7758

Dr Kyuseop Kwak, Marketing Discipline Group, telephone 9514 3150

Associate Professor Nico Schulenkorf, Management Discipline Group, telephone 9514 5368 Any arrangements should be negotiated within the first six weeks of session.

Support

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Exceptional employment demands: such as active service (e.g. ADF Reserves, bushfire and SES services).

Special consideration is not automatically guaranteed and may not result in a mark adjustment

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