Aims

This course aims to provide students with an understanding of how entrepreneurs succeed in mobilising the resources they need to start and grow their venture.

Upon completion of this course, the student is able to:

• understand the implications of the important differences between new venture finance and corporate finance (finance of large public corporations);
• appreciate the differences in value to an underdiversified entrepreneur compared to a diversified investor and learn how to exploit the differences to design investment agreements;
• think about the business plan in terms of its purposes and recognize the importance of careful strategic planning and financial modeling;
• describe the various sources of funding for new ventures (venture capital, angel capital, private equity and many others) and evaluate which of the choices are feasible in the particular start-up setting;
• understand the organization of the venture capital industry and the economics underlying the contracts that are used in the industry;
• understand the importance of milestones in new venture development and can think about them in terms of decision trees;
• understand the basics of financial modeling, the importance of grounding the model in well-documented assumptions, and learn how to use the model to assess the venture's cash needs;
• value new venture opportunities using state-of-the art valuation methods and understand how these methods relate to the financial economic theory that you have learned in corporate finance (methods covered include the Venture Capital method, First Chicago method, discounted cash flow using either risk-adjusted discount rate or certainty equivalent approach, relative value);
• point out why harvesting is the essential focus of the initial investment decision and understand the costs and benefits of the various exit alternatives.
   

Previous knowledge

corporate finance

Is included in these courses of study

• Master in de toegepaste economische wetenschappen (Leuven) 60 ects.
• Master in de toegepaste economische wetenschappen (Leuven) (Major: Entrepreneurship) 60 ects.
• Master in de toegepaste economische wetenschappen (Leuven) (Minor: Entrepreneurship) 60 ects.
• Master handelsingenieur (Leuven) 120 ects.
• Master of Business Economics (Leuven) 60 ects.
• Master of Business Economics (Leuven) (Major 2: Entrepreneurship) 60 ects.
• Master of Business Economics (Leuven) (Minor 3: Entrepreneurship) 60 ects.
• Master of Business Engineering (Leuven) 120 ects.
• KICK Academy (Leuven) 18 ects.
• Master of Business and Information Systems Engineering (Leuven) 120 ects.
• Courses for Exchange Students Faculty of Economics and Business (Leuven)