Contents
Section 001: 11:00 pm - 12:15 pm TR, Bidgood Hall 119
Section 002: 12:30 pm - 1:45 pm TR, Bidgood Hall 119
Date range: January 10 - April 26, 2024
New Venture Finance (MGT 481) provides students with working knowledge of financing mechanisms such as friends and family, venture capital, angel investments, and debt instruments for creating and operating a new venture; valuation methods for determining pre- and post-money; creating capitalization tables to track equity ownership assignments and investment rounds.
MGT 300 and MGT 386, MGT 387 may be taken as co-requisite
see this Google doc
Three paperback (or ebooks) available at Amazon.com
Founder’s Pocket Guide: Friends and Family Funding $7.99 ($3.03)
ISBN 978-1-938162-11-4
Founder’s Pocket Guide: Startup valuation $7.99 ($3.99)
ISBN-13: 978-1938162046
ISBN-10: 1938162048
Founder’s Pocket Guide: Term sheets and preferred shares $7.99 ($3.99)
ISBN 978-1-938162-06-0
The lowdown: You can probably get through this course without these books, but I purposely chose these books because of their quality, conciseness, and price.
Professor Craig E. Armstrong, Ph.D. | Alston 155 | MGT481BAMA@gmail.com for "formal" course communications | Group.me for informal communications - quick answers and sudden announcements - I will invite you to the group by the first day of class or sooner by email.
Add MGT481BAMA@gmail.com to your address books now
I have organized this course into modules that present topics in "bite-sized" portions. A module usually covers a well-defined topic over a short period with defined objectives and graded activities. You should refer to this section of the course web site a few times a week to keep up with updates and to prepare yourself in advance for upcoming activities and assignments.
You will turn in a graded activity nearly every week of the semester beginning the week of Sept 5-8 (the week in which Labor Day occurs). I generally offer practice quizzes, which are not required, for each module. I provide practice quizzes because it's proven to to help reinforce what you've learned. After viewing the assigned readings and videos and attending lectures in class, you'll have a graded assessment activity. This could be in the form of a written analysis, a brief case write-up, or an additional graded quiz. All assignments are due by 11:59 pm, Sunday evenings. The points I've assigned to each module are intentionally set so that messing up on any one particular assessment won't crush your grade (or your soul). Ten assignments each each worth 10 points - usually as quizzes - all add to 100 total points for the course.
(tentative, I'll change dates, but think now in terms of week one, two, three...)
Since we're talking schedules, here's a link to the UA academic calendar page.
This section last updated: January 8, 2024
January 11 - No lecture, no class
January 16 - Course Ice Breaker with Game Mechanisms (NOT Proof Eyewear)
January 18 - Review syllabus, set up course - Possible ice breaker...Here are the slides I used for the introduction
January 23 - Course opener January 23 Opener slides - Crowdfunding, both equity and rewards-based (<-- links to lecture slides)
January 25 - Crowdfunding Activity in class Here is the link to the Netflix design documentary on Nike shoe designer Tinker Hatfield
January 30 - Financial statements and analysis with business models (tentative); here is a link to a write-up overview of financial analysis methods (google doc).
February 1 - graded in-class activity using financial analysis for your Kickstarter Shoe Company, 10 points, on Bb as "financial analysis" (and possibly navigate to Ridge after class)
February 6, begin Pro Forma Financials topic with Beatbox Beverages example,
February 8 Pro Forma Financials Assessment with Beatbox Beverages, <-- This link takes you to the assignment, which is at the TOP OF THE PAGE for pro forma financials
OPTIONAL READING: Wired.com, Jan 24, 2024: Two Nations, a Horrible Accident, and the Urgent Need to Understand the Laws of Space; WIred.com, Dec 11, 2023: Space junk is a huge problem. It’s also a business opportunity; How celestial ‘gas stations’ could unlock the space economy; Are space-based solar farms the future of clean energy?
February 13; (quick?) Krabby Patties build up method. debrief on pro forma assignment (and relating it to your business model canvas - saved for Thursday); then intro to working capital management
February 15, in-class working capital management assessment with linkage to business model canvas - I will post your assignment to the working capital management page during the week of Feb 13-15. Sorry we didn't meet this day!
February 20 Overview of Sources of Financing,
February 22: Working Capital Management in-class assignment (10 points) -- Quiz on Sources of Financing, Out-of-class and due by midnight, Sunday, Feb 25, (10 points), on Bb as Sources of Financing (or close to that)
February 27: Cap Tables: who invested how much at what stage of financing at what share price? Navigate to Cap Tables (short deck of lecture slides), and explore a generic cap table here; Here is a text explanation of how to calculate new number of shares and share price
February 29: Cap Tables In-class team assessment; 10 points, on Bb as "Cap Tables"
March 5: How to talk to investors; Founders; lecture
March 7:Biggest mistakes first time founders make (7:10). How startup fundraising works (29:00) How to build an MVP (16:52; related Bar Tap MVP) POSSIBLE in-class activity (not graded), Bonus reading: Crunchbase Explainer: How To Sell Your Stock Options On A Secondary Market (Crunchbase, 2/6/23)
March 8 - 17, Spring Freaking Break. Be safe, have fun, they are not mutually exclusive.
March 19: Friends and Family,
March 21: In-class activity, Your assignment: Download this google doc as a Word doc, and submit your completed document using this google form.10 points (On Bb as "F&F"). Here is a practice quiz to help you with convertible debt issues and calculations (google doc with questions and annotations)
March 26: Early Stage Valuation Read all of this article on Objectives and Key Results (OKRs)
March 28: In-class team assessment 10 points (on Bb as "Early Stage Val")
April 2: Angel Investors,
April 4: Here is your graded assignment: In-Class Graded Activity due in class Watch these instructions if you were not able to be in class 10 points (on Bb as "Angel")
April 8 solar eclipse
April 9 (Dr D's birthday): Venture Capital (for slides), Read also: Series A Term Sheet Template (Y Combinator)
April 11: In-class team assignment Nov 16 (here is an example of how the mechanics work) (if you miss class, turn in by Apr 14, 10 points (On Bb as "Venture Capital").
April 16: Term Sheets
April 18: Lecture on Entrepreneurship through Acquisition (EtA, aka "search funds"). in-class assignment (open this form and view this spreadsheet)
April 23: In-class graded activity on search funds (10 points)
April 25: Assignment make-up day; come to class to finish any missing assignments you might have for partial credit.
We have 100 points on the books by the end of April 23.
April 26: CLASSES END - have fun with your dead week presentations in other classes.
February 1 - graded in-class activity using financial analysis for your Kickstarter Shoe Company, (10 points)
February 8 Pro Forma Financials Assessment with Beatbox Beverages --> Browse to this google sheet: (10 points) https://docs.google.com/spreadsheets/d/1SE9h3R6qQOERYCAA9wCrDh99HAIZ90TIRNv-QVEXXHU/edit?usp=sharing
February 22: Working Capital Management in-class assignment (10 points)
February 22: Quiz on Sources of Financing (for lecture materials), here is the link to the quiz, Out-of-class and due by midnight, Sunday, Feb 25, (10 points), on Bb as Sources of Financing
February 29: Cap Tables In-class team assessment; 10 points, on Bb as "Cap Tables"
March 21: In-class activity, Your assignment: Download this google doc as a Word doc, and submit your completed document using this google form.10 points (On Bb as "F&F").
March 28: Early-stage evaluation. In-class team assessment 10 points (on Bb as "Early Stage Val")
April 4: Angels. In-Class Graded Activity due in class Watch these instructions if you were not able to be in class 10 points (on Bb as "Angel")
April 11: Venture Capital. In-class team assignment (here is an example of how the mechanics work) (if you miss class, turn in by Apr 14, 10 points (On Bb as "Venture Capital").
April 23: Search funds In-class graded activity on search funds (10 points)
Due by May 3: Extra Credit (5 points)
Resources you can (should) use in addition to assigned readings and activities, but not required for this course. I want to help you on your entrepreneurial journey in this class, your other classes, and into your future.
The pmarca blog archives
Select posts by Marc Andreessen 2007-2009; peer into the thoughts of one of the most influential entrepreneurs over the past three decades on a variety of topics.
Why read pmarca blog archives:
US Small Business Association (SBA.gov): Financing Options for Small Businesses (45-minute course).
This self-paced training exercise is an introduction to financing options for your business. Topics include; determining your financial needs, loans, grants, venture capital, angel investors, crowd funding and other financial options available to small businesses.
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