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:2020/1
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 some recent trends in entrepreneurial finance, such as 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. A practical case that includes a set of simulations will allow you to take the role of a venture capital investor or entrepreneur. Finally, we will focus on another way to realize entrepreneurial potential; by taking over an existing business through a management buyout or management buy-in. 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, and a balance sheet
  • 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
501000

Details of learning activities and teaching methods

CategoryHours of study timeDescription
Online introduction10Introduction to topic (pre-learning; accounting & finance basics)
Lectures24Subject sessions
Venture capital case (group assignment)100Produce a written report on due diligence, valuation (dynamic Excel sheet) and term sheet negotiation
Workshops16Workshops 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
50500

Details of summative assessment

Form of assessment% of creditSize of the assessment (eg length / duration)ILOs assessedFeedback method
Individual quiz50Set of multiple choice questions; 1-2 hour(s)1-7Written
Venture capital case (group assignment)30Written report on due diligence, valuation and term sheet negotiation simulation. (3,000 words)1, 3-5, 7-9Written
Reflective Essay202,500 words

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

Original form of assessmentForm of re-assessmentILOs re-assessedTimescale for re-assessment
Individual quizIndividual quiz1-7August resubmission period
Venture capital case (group assignment)Case (Individual)1, 3-5, 7-9August resubmission period
Reflective EssayReflective Essay1-9August 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, and a balance sheet
  • Workshop: Financial planning
  • Venture capital: (a) Due diligence, (b) valuation and (c) term sheet negotiation
  • Workshop: Venture capital case (with due diligence, valuation and term sheet negotiation simulations)
  • Buyouts

Indicative learning resources - Basic reading

Text Book:

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

 

Other resource:

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

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

Guide on Private Equity and Venture Capital for Entrepreneurs. Available at:  https://www.investeurope.eu/media/78722/guide-on-private-equity-and-venture-capital-2007.pdf

Why and How to Invest in Private Equity. Available at: http://mertens.com.ua/pevc/how%20to%20invest.pdf

Expanding Horizons: The 3rd European Alternative Finance Industry Report. Available at: https://www.jbs.cam.ac.uk/faculty-research/centres/alternative-finance/publications/expanding-horizons/#.W5j-As4zbs0

Origin date

27/11/2018

Last revision date

10/02/2020