Module

Funding, Accounting and Finance

Module description

This course will introduce you to the key concepts of entrepreneurial finance and build confidence in how to navigate the funding, accounting, and finance space successfully. Businesses across the world have a multitude of options in how to raise finance to start and create further growth. You will learn how to identify and manage the best options of funding from financial bootstrapping, banks, crowdfunding, angel investment, to venture capital. By having a good working knowledge of how to manage money and make it work for you, it will give you the confidence to build, launch, and make your business financially sustainable.

Full module specification

Module title:Funding, Accounting and Finance
Module code:BEMM224
Module level:M
Academic year:2021/2
Module lecturers:
  • Dr Tom Vanacker - Convenor
Module credit:15
ECTS value:

7.5

Pre-requisites:

None

Co-requisites:

None

Duration of module: Duration (weeks) - term 2:

2

Module aims

This course targets students who are interested in gaining a broader view of the financing landscape for entrepreneurial firms. It aims to prepare students who plan to get involved with entrepreneurial firms in their careers -- as founders, managers, advisors or investors. The course will provide an overview of the financing landscape for entrepreneurial firms, including financial bootstrapping, business angels, venture capital and crowdfunding in its different forms (e.g., donation, rewards, lending, and equity). The aim is to make you acquainted with these different sources of financing. The course will further provide a background in financial planning to help you understand if external financing is required and, if so, how much and when. The course will next delve deeper into venture capital -- an important source of entrepreneurial finance. We will provide an in-depth analysis of the structure of the venture capital industry and then cover due diligence, valuation, term sheet negotiation, and post-investment involvement. Practical cases will allow you to take the role of a venture capital investor or entrepreneur. The ultimate aim of this module is to provide you with the skills set to develop successful financing strategies to support your entrepreneurial ambitions in new or growing firms and established businesses.

ILO: Module-specific skills

  • 1. describe key concepts in the financing of entrepreneurial firms;
  • 2. prepare a financial plan including P&L and cash flow statements;
  • 3. describe the different types and sources of financing for entrepreneurial firms and their appropriateness within a specific context;
  • 4. conduct a due diligence and valuation of an entrepreneurial venture;
  • 5. create a term sheet.

ILO: Discipline-specific skills

  • 6. critically evaluate financial plans;
  • 7. develop a coherent financing strategy for entrepreneurial firms.

ILO: Personal and key skills

  • 8. present financing related aspects of a venture;
  • 9. work (in teams) to explore complex entrepreneurial finance problems.

Learning activities and teaching methods (given in hours of study time)

Scheduled Learning and Teaching ActivitiesGuided independent studyPlacement / study abroad
361140

Details of learning activities and teaching methods

CategoryHours of study timeDescription
Scheduled Learning and Teaching Activity10Online introduction: Introduction to topic (pre-learning; accounting & finance basics)
Scheduled Learning and Teaching Activity16Lectures: Subject sessions
Guided Independent Study114Venture capital cases (3): Produce a written report on 1) due diligence, 2) valuation (dynamic Excel sheet) and 3) term sheet negotiation
Scheduled Learning and Teaching Activity10Workshops: Workshops with student presentations of cases and feedback

Formative assessment

Form of assessmentSize of the assessment (eg length / duration)ILOs assessedFeedback method
Financial planning caseIn class (approx. 120 minutes)1-2, 6-9Verbal
Exercises and discussionsIn class (approx. 90 minutes a day)1-9Verbal

Summative assessment (% of credit)

CourseworkWritten examsPractical exams
60400

Details of summative assessment

Form of assessment% of creditSize of the assessment (eg length / duration)ILOs assessedFeedback method
Case 1 Screening and due diligence (individual assignment)20Written report on due diligence. (1 page)1, 3-4, 7-9Written
Case 2 Valuation (group assignment)20Written report on valuation. (Dynamic Excel file with short explanations)1, 4, 7-9Written
Case 3 Term sheets (individual assignment)20Written report on term sheet. (Suggest changes to term sheet)1, 5, 7-9Written
Individual quiz40Part A (20%): Financial planning case (1 hour) and Part B (20%): Set of multiple choice questions (1 hour)1-7Written
0

Details of re-assessment (where required by referral or deferral)

Original form of assessmentForm of re-assessmentILOs re-assessedTimescale for re-assessment
Individual quiz (40%)Individual quiz: multiple choice and open questions (1-2 hours, 40%)1-7August resubmission period
Case 1 (20%)Reflective essay on case 1 (1000 words, 20%)1-9August resubmission period
Case 2 (20%)Reflective essay on case 2 (1000 words, 20%)1-9August resubmission period
Case 3 (20%)Reflective essay on case 3 (1000 words, 20%)1-9August resubmission period

Syllabus plan

Indicative content for this module includes:

  • The entrepreneurial financing landscape: Financial bootstrapping, crowdfunding, business angels, venture capital, banks.
  • Financial planning including P&L and cash flow statements
  • Workshop: Financial planning
  • Venture capital: (a) screening and due diligence, (b) valuation and (c) term sheet negotiation
  • Workshops: Venture capital case (with due diligence, valuation and term sheet negotiation simulations)

Indicative learning resources - Basic reading

Text Book:

Alemany, L and Andreoli, J (2018) Entrepreneurial Finance: The Art and Science of Growing Ventures.  Cambridge: Cambridge University Press. ISBN-13: 978-1108431859

Mclaney, E & Atrill, P (2008) Accounting and Finance for Non-Specialists(6th Ed.) Financial Times/ Prentice Hal. ISBN-13: 978-0273716945.

 

Other resource:

De Clercq, D, Fried, V.H, Lehtonen, O, and Sapienza, H.J (2006) An Entrepreneur's Guide to the Venture Capital Galaxy. Academy of Management Perspectives, 20(3), 90-112

Drover, W, Busenitz, L, Matusik, S, Townsend, D, Anglin, A, and Dushnitsky, G (2017) A Review and Road Map of Entrepreneurial Equity Financing Research: Venture Capital, Corporate, Venture Capital, Angel Investment, Crowdfunding, and Accelerators. Journal of Management, 43(6), 1820-1853

Vanacker, T and Manigart, S (2013) Venture Capital. Baker, K.H and Filbeck, G. (eds.),Alternative Investments: Instruments, Performance, Benchmarks, and Strategies, Hoboken, NJ: John Wiley & Sons, Inc. ISBN: 978-1-118-24112-7

Module has an active ELE page?

Yes

Indicative learning resources - Web based and electronic resources

ELE – https://vle.exeter.ac.uk/

Origin date

27/11/2018

Last revision date

09/05/2021