Bahria University

(Islamabad Campus)
Department of Management Sciences

Course Title:

Entrepreneurial Finance
CATALOGUE DESCRIPTION
Credit Hours: Semester: Instructor: Three (3) 3rd Semester Annam Ahsan Class: MBA 3 Section: Y & D

COURSE DESCRIPTION
Entrepreneurial Finance is designed to help managers/students make better investment and financing decisions in entrepreneurial settings. The course covers all stages of the process; from start up to harvest. The course is designed to focus on understanding and interpreting financial numbers and developing analytical techniques that are useful in entrepreneurial settings. The course is primarily aimed at people who may be involved in an entrepreneurial venture at some point in their careers whether in a large organization, a turnaround, a management buyout or a startup. The course will also be useful for future private equity decision makers.

COURSE OUTCOMES
Assess the timing and amounts of financial needs Estimate risks and expected returns of financial claims Evaluate alternative new venture strategies Estimate the effects of complex options on value Design and negotiate deals Address information and incentive problems Understand the institutions of new venture finance Develop a business plan to attract outside funding

COURSE OBJECTIVES

Be able to describe the evolution of thinking about entrepreneurship Understand how new venture finance is different from corporate finance Understand why the objective of maximizing value for the entrepreneur is central to new venture finance Be able to understand the process of new venture formation from inception of the idea to harvesting of the investment Recognize that studying new venture finance can contribute to better decision-making and increased potential for success

TEXT BOOKS (S) AND REFERENCES

1 2

Entrepreneurial Finance (2nd Ed.) by Leach and Melicher, Thomson South-Western Publishing Company. Entrepreneurial Finance (2nd Ed.) by Smith and Smith, Wiley Publishing Company.

Bahria University
(Islamabad Campus) ASSESSMENT EVALUATION
Students assessment will be based on their ability to demonstrate their understanding of the concepts and theories learnt in the course. Students will be evaluated on the basis of a demonstration of their ability to forecast the financials, do break-even analysis, and valuation of a new venture. They will be required to show skills to develop a complete business plan. ITEM 1 2 3 4 5 ASSESSMENT TASK Final Examination Mid-Term Examination Quizzes Final Project Individual Assignments WEIGHT 40% 25% 15% 10% 10% TOTAL MARKS 40 25 15 10 10

Department of Management Sciences

GRADE: A B+ B C+ C D F

SCORES OBTAINED: 87 % 80 86 % 72 79 % 66 71 % 60 65 % 50 59 % 50 %

Teaching Methodology:
The teaching methodology for this course will primarily be lecture based, with significant class interaction. However, this method will be supplemented with a range of other teaching methodologies as well. Mini Cases/Readings to be used as class readings as well as assignments Project/Case study Analysis Question Practice Sessions Quizzes, both announced and unannounced.

Attendance:
Minimum 75% attendance is required. This is student responsibility to follow up on what they may have missed due to absence from a teaching session through interaction with fellow students who attended the class.

Late Submission:
There will be no retake of a quiz that a student misses. Late submission of assignments and case analysis is discouraged and will be penalized by 10% of the assigned marks for each day of late submission.

Bahria University
(Islamabad Campus)
Dishonest Practice and Plagiarism:
Students are expected to avoid plagiarism. Plagiarism involves claiming some one else work as ones own. The fact that a student might do it unintentionally still constitutes plagiarism and hence is strictly prohibited. Students are expected to take reasonable care to ensure originality of their work. The existence of plagiarism will result in zero marks on the assignment and will be notified to Head of Department for further disciplinary actions.

Department of Management Sciences

COURSE CONTENTS / SYLLABUS BREAKDOWN IN LECTURES

Week # 1 Topics Covered Introduction to Entrepreneurial Finance, Entrepreneurship Fundamentals & Sources of Entrepreneurial Opportunities Forms of Business Organization, Successful Venture Life Cycle, Sequence & Sources of Financing Deal Structure, Pre and post money valuation, Intellectual Property Rights Business Plan Real Options and Decision Trees Financial Statements: Measuring Financial Performance Evaluating Financial Performance Financial Planning: Short term and Long term Financial Forecasting Venture Valuation & Equity Valuation Models VC Valuation Methods Financing Alternatives Harvesting Presentations Revision

3 4 5 6 7&8 9 10 11 12 13 14 15 16