What
Home of instructional materials for MGT 481, New Venture Finance, Spring 2022, Sections 001 and 002.
Section 001: Bidgood 15, 11:00 - 12:15
Section 002: Bidgood 115, 12:30 - 1:45
New Venture Finance (MGT 481) provide 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.
Pre-requisites
MGT 300 and MGT 386
Syllabus
see this Google doc
Strongly Suggested Texts
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.
Course objectives
This course is for aspiring or active entrepreneurs who want to understand how to secure funding for their company. This course will demystify key financing concepts to give entrepreneurs and aspiring entrepreneurs a guide to secure funding. Examine the many financing options available to get your new venture funded. Learn the basics of finance, valuations, dilution and non-dilutive funding sources. Understand capital structure for new ventures, term sheets and how to negotiate them, and the differences between early-stage versus later-stage financing. Develop an understanding of how to develop winning investor pitches, who and when to pitch, how to avoid common mistakes that limit the effectiveness of the pitch, and how to ‘get to the close’.
Key questions answered within the course include:
When to raise outside capital?
What kind of investors invest by stage and where to find them?
What are your fundraising options?
What are the key components of the term sheet?
How to perform company valuations?
How to create milestones to delineate the progress of the new venture?
How to pitch to investors?
What techniques help the entrepreneur ‘get to the close’?
(Adapted from https://www.coursera.org/learn/startup-funding)
Learning outcomes
Student learning objectives include at a minimum the following:
Recognize and anticipate situations where entrepreneurs should raise outside capital
Identify appropriate types of investors by stage and recognize where to find them
Identify and evaluate fundraising options that are appropriate the to type and stage of development of the venture
Understand and differentiate the key components of the term sheet
Perform several different approaches to company valuations
Understand the components of an effective pitch to prospective investors
Recognize, evaluate, and select situation-appropriate techniques that help the entrepreneur ‘get to the close’
Instructor
Professor Craig E. Armstrong, Ph.D. | Alston 155 | MGT481BAMA@gmail.com for all course communications.