E

ENTRE
EPREN
NEURIIAL FINANC
CE
ENTP 63
315/FIN6
6315-O
OG1 (O
ONLINE) SPRIING 2010
Class Meetin
C ng Senioor Lecturer: Madison Ped digo
O
Online (via UTT Dallas eLea arning system
m) Office: SOM 2.411
O
Office Hours: Emaiil: mpedigo@
@utdallas.edu
Phonne: (UTD officce): (972) 883
3-4481
1 by eLearnin
1) ng system em mail function
2 online office
2) e hours, Wed dnesdays 1-2::30, Central Time
T
Z
Zone, USA (T Texas)
3 by appointm
3) ment for phon ne discussion
4 by appointm
4) ment for office
e visit
| Course Infformation | Technical and
a Communications Requireme ents |
| Assignmen nts and Acaademic Callendar | Graading and Assessmen
A nt |
| Course an
nd Instructor Policies | Student Reesources | Scholastic
S Honesty |
| Course Evvaluation | University
U P
Policies |

C
COURSE IN
NFORMAT
TION:
C
COURSE PRE
EREQUISITE
ES, CO-REQU
UISITES, AND
D/OR OTHER
R RESTRICT
TIONS:
This course iss equivalent to
T o ENTP/FIN 6315
6 (classro a only one of these mayy be counted toward
oom version) and t a
d
degree. Prereequisite: FIN 6301
6 or conse
ent of the insttructor.

C
COURSE OBJECTIVES:

The objective
T e of this courrse is to build
d skills and knowledge in n the financin ng of entreprreneurial ventures and
u
understand th
he process off financing enntrepreneurial ventures fro om the perspe ective of the entrepreneur
e and from
the investor. Entrepreneu urial Finance concerns no ot only the processes
p of financing and investing in n start-up
c
companies, but also the chhanges to the e initial financcing mix that may be requ uired as start--up companie es mature
a grow. The course also
and o addresses analysis of fiinancial state ements and projection
p of cash
c flows. Additional
A
to
opics include e the market for venture capital and private equityy, the decisio on to go pub blic or remain private,
a
alternative finaancing arranggements, and d the differenttial marketabiility and liquid
dity of the seccurities used to
t finance
n
non-public firm
ms.

L
LEARNING O
OBJECTIVES
S/STUDENT OUTCOMES:
O

We will rely on
W o case studie es, outside re
eadings, tapeed guest lectu ures, taped class lectures, and the assigned text
b
book to cover the above topics. Taped guest leccturers include entreprene eurs, VC’s, angel investorrs, private
e
equity firms, corporate
c inve
estors, and other
o investme ent professionals. You wiill need to wo ork in groups on all but
twwo of the casse analyses, and you will need
n to deterrmine who yo ou want to tea
am with and sign
s up for a group on-
liine using the group formation tool by January
J 19th. I’ll review an
nd we will pla
an to finalize the
t group me embers by
J
January 25th. (Also see the
e Grading Infoormation and Group Project Sections below.)

U
Upon on of this courrse, students will understand:
successsful completio

1. Sourcces of start-up t pros and cons of obtaining capital from each sou
p capital and the urce
2. How to
t value comp panies as they evolve through their life cycle from se
eed stage to la
ate stage privvate
companies
3. Finan
ncial statemen nd estimating cash flow nee
nt analysis an eds

E
ENTP 6315/FIN 63315 Online Syllabu
us - Spring 2010 - Senior Lecturer: Madison
M Pedigo - Revised: 4-5-10
 4. What terms are typ pically found in
i a term shee
et and their im
mpact on the company and d on ownership in
e financing rou
future unds
5. Exit strategies and
d tradeoffs in assessing
a owth through internal/exterrnal financing, acquisition, or IPO
gro

R
REQUIRED C
COURSE MAT
TERIALS:

• Text Book: Leach and Melicher,

T M 3rd edition, Enttrepreneurial Finance
• C
Cases: A package
p of 13 busine ess cases and a one class handou ut. Two cases
c are individual
a
assignmentss that require
e a written analysis
a with
h discussion
n on-line. Eight cases will
w be assig gned to a
g
group to pre
epare a writtten analysiss (with all other
o studen
nts reading and
a preparin
ng for the case
c and
s
supporting o
on-line disc
cussion). Three
T cases are prim marily individ
dual readingg assignme ents with
a
abbreviated discussion on-line.
o A suummary is provided
p belo
ow.

List of Cases and Case

C Notes:

Harvaard Business School

S
9-803--096 Zippcar: Refining the Business Model
M (Individdual Written Asssignment)
9-297--028 Clarkson Lumber (Individual Written
W Assignm ment)
9-396--067 Paathfinder Capitaal (Assigned too a Group as written
w assignment)
9-898--188 Baand of Angels (Assigned
( to a Group as writtten assignmentt)
Class Handout Reeturns to Angell Investors (Asssigned to a Grooup as a writteen assignment)
9-805--019 Hoow VC’s Evaluuate Potential Opportunities
O (
(Primarily readding w/ some on-line discussiion)
9-801--167 Reeturn Logic (A)) (Assigned to a Group as wrritten assignmeent)
9-804--083 Goold Hill Venturre Lending (Asssigned to a Grroup as a writteen assignment))
IMD 185
1 Preeparing for thee Google IPO (Assigned
( to a Group as a wriitten assignmennt)
9-807--124 Teechnology Trannsfer at U.S. Universities (Priimarily readingg w/ some on-lline discussion))
9-207--092 Reestructuring Naavigator Gas Trransport (Assiggned to a Grouup as a written assignment)

Richaard Ivey Scho

ool of Businesss
906M
M05 No
ote on Internatiional Licensingg (Primarily reeading with som
me on-line disccussion)
99N0018 Naanpo (Holdingss) Limited (Assigned to a Grooup as a writteen assignment)

Stanfoord Graduate School of Bussiness

E214 EnndoNav (Assiggned to a Groupp as a written assignment)
a

ƒ Course Packet:
P Course case docume
ent pack availa
able at Universiity of Texas at Dallas Booksto
ore.

<
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T
TECHNICA
AL AND CO
OMMUNICA
ATIONS RE
EQUIREME
ENTS:
e
eLEARNING SYSTEM:

This course was

T w developed d using a web b course tool called eLearn ning. It is to be
e delivered entirely online.. You will
n
need to sign up
u for an eLea arning accoun nt for use durring this coursse. Students will
w use their UTD
U NetID acccount to
lo
ogin to the co
ourse at: http://elearning.uttdallas.edu. Please
P find more
m details on n course acceess and navig gation

E
ENTP 6315/FIN 63315 Online Syllabu
us - Spring 2010 - Senior Lecturer: Madison
M Pedigo - Revised: 4-5-10
in
nformation. To
T get started with an eLea
arning course, please see the
t Getting Started: Student eLearning
O
Orientation.
UTD providess eLearning te
U echnical suppport 24 hours a day/7 days a week. The services inclu ude a toll free
e
telephone num
mber for imme ediate assista
ance (1-866-5
588-3192), emmail request service,
s and an
a online chatt service.
T UTD userr community can
The c also acce ess the suppo
ort resources such as self-help resource es and a Know wledge
B
Base. Please use this link to
t access thee UTD eLearn ning Support Center:
C http:///www.utdallass.edu/elearninnghelp.

Direct any em
D mail communic cation to the professor
p thro
ough eLearnin ng. A Universsity policy to protect
p studen
nt privacy
d
directs that faculty are not required to annswer studen nt emails unless they are frrom a UTD acccount. This means
m
that the professsor will not respond to emmails unless th
hey come thro ough eLearning.

In addition to a confident le
evel of compu net literacy, certain minimu
uter and Intern um technical requirements
r must be
m to enable a successfull learning exp
met perience. Plea ase review the echnical requiirements and the web
e important te
b
browser config
guration inforrmation. Pleasse note additiional technica
al requiremen nts for web ba
ased teleconfe
erencing
to
o be utilized in
i this course.

C
COMMUNICA
ATIONS SUM
MMARY:

This eLearning course has built-in comm

T munication toools which will be used for interaction an
nd communica
ation.
S
Some externaal communicaation tools succh as regular email and a web
w conferencing tool mayy also be usedd during
the course. Fo
or more details, please seee communica ation tool inforrmation.

INTERACTIO
ON WITH PRO
OFESSOR:

The professorr will commun

T nicate with stu
udents mainlyy using the eLLearning Anno ouncements, Discussions, and
E
Email tools. Students
S may send persona al concerns oro questions too the professoor using the course
c Email tool. The
p
professor will reply to studeent emails or Discussion board
b messag ges within 2 working
w days under
u normal
c
circumstances s, and genera ally check eLeearning email daily during the regular Monday
M througgh Friday weeek period.
H
However, pleaase remembe er that the pro
ofessor is a hu
uman like thee students, witth other classs requirementts, family
o
obligations an
nd outside com mmitments. So,
S if the proffessor does not respond im mmediately to o your email, please
p do
n worry. Th
not he professor will
w get in toucch with you ass soon as the ey are able to.. Professors sometimes ta ake
w
weekends off or work off lin
ne, so do not expect a resp ponse until Mondays.
M

The other form

T m of regular in
nteraction willl be through the
t discussion n boards for each
e class seession. The professor
p
m post one or more ques
may stions, comm ments, notes, etc.
e during a session
s weekk pertaining too the readingss for that
w
week. You wiill need to parrticipate in the
e discussion function
f in ord
der to get cre
edit for particip
pation.
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A
ASSIGNME
ENTS AND ACADEMIIC CALEND
DAR:

Unit  D
Date  Text  Guest  Guest'ss Topic Case  Case Due;  Planned 
Chs.  Lecturer  Assigned 
A Discussion  Class 
Begins  Discussionn 

Intro  ‐  ‐  ‐  ‐ N/A N/A  ‐

E
ENTP 6315/FIN 63315 Online Syllabu
us - Spring 2010 - Senior Lecturer: Madison
M Pedigo - Revised: 4-5-10
 1  01//11/10  1‐2  None  ‐ N/A N/A  Post self 
introductioon 

2  01//19/10  3‐4  Paul Nicho

ols  Introducction to  Zip Car N/A  Initial Team
m 
Venture Capital  Selection; 
Zipcar Casee 
Assigned 

3  01//25/10  5‐6  Paul Peckk  Insights From a  Clarkson 

C Zip Car  Team 
Serrial  Lumber  formation 
Entreprreneur  finalized; 
Zipcar Case e 
Analysis‐ 
Individual 
Assignmentt 
With Writte en 
Analysis 

4  02//01/10  7  Chuck May  Lessonss from  Paathfinder Clarkson  Clarkson 

privvate  Lumber  Lumber Casse 
invessting  Analysis‐ 
Individual 
Assignmentt 
With Writte en 
Analysis 

5  02//08/10  9‐ Hollingsworrth  Private Equity E

EndoNav Pathfinder  Pathfinder 
10  Case 
Analysis‐ 
Group 
Assignmentt 
With Writteen 
Analysis 
6  02//15/10  ‐     Band Of 
B EndoNav  EndoNav 
Angels;  Case 
Re
eturns to  Analysis‐ 
Angel  Group 
In
nvestors  Assignmentt 
With Writteen 
Analysis; 
Submit 2 

ENTP 6315/FIN 63315 Online Syllabu

us - Spring 2010 - Senior Lecturer: Madison
M Pedigo - Revised: 4-5-10
 Research 
Report 
Topics 

7  02//22/10  ‐  Kala Maratthi  Houston

n Angel  How VC's 
H Band Of  Band of 
Netwwork  E
Evaluate  Angels;  Angels Casee 
P
Potential  Returns to  Analysis‐ 
Opp
portunities  Angel  Group 
Investors  Assignmentt 
With Writteen 
Analysis 

8  03//01/10  11  Sam  VC Ove

erview Return Logic How VC's  How VC's 
d 
Kingsland Evaluate  Evaluate 
Potential  Potential 
O
Opportunities  Companies‐ 
Individual 
Assignmentt 

9  03//08/10  13  Brodsky  Private Equity G

Gold Hill Return Logic  Return Logiic 
Case‐ Group 
Assignmentt 
With Writte en 
Analysis 
10  03//22/10  12  Sureck  Silicon Valley  Go
oogle Case Gold Hill  Gold Hill 
nk 
Ban Case‐ Group 
Assignmentt 
With Writte en 
Analysis 
11  03//29/10  14  ‐  ‐ Google Case  Google IPO O 
Case‐ Group 
Assignmentt 
With Writte en 
Analysis 
12  04//05/10  8  ‐  ‐ N
Note on  None  No case due.  
International  Research 
Liicensing;  Report Due e 
Te
echnology  on 4/9/10.
Trransfer at 
U.S. 
Unniversities 

ENTP 6315/FIN 63315 Online Syllabu

us - Spring 2010 - Senior Lecturer: Madison
M Pedigo - Revised: 4-5-10
 13  04//12/10  ‐  Julie Nicho
ols  Licensingg and IP  Navigator 
N Note on  Licensing annd 
Valuaation   Gas  International  Tech 
Transport  Licensing;  Transfer‐ 
Case  Technology  Individual 
Transfer at  Reading and 
U.S.  Discussion 
Universities  Assignmentt 

14  04//19/10  15  ‐  ‐ Naanpo Case Navigator Gas  Navigator 

N
Transport  Case‐ Group 
Case  Assignmentt 
With Writteen 
Analysis 
15  04//26/10  ‐  Ed Olkkolaa  VC, Strrategic  None Nanpo Case  Nanpo Case e‐
investoor, and  Group 
Private Equity  Assignmentt 
Perspecttives on  With Writteen 
Invessting  Analysis 

16  05//03/10  ‐  ‐  ‐ ‐ None  Cutoff for 

submitting 
any late 
work! 
Discuss 
Highlights oof 
Written 
Research 
Reports 
Based on 
Submittals 
on 4/9/10.
Individual 
Assignmentt 
to Review 
and 
Participate in 
on‐line 
discussion; 
Peer 
evaluationss 
for Group 
Cases Due; 
Course Wraap 
Up 
17  05//10/10  ‐  ‐  ‐ ‐ ‐  ‐

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E
ENTP 6315/FIN 63315 Online Syllabu
us - Spring 2010 - Senior Lecturer: Madison
M Pedigo - Revised: 4-5-10
G
GRADING A
AND ASSE
ESSMENT::

G
GRADING INFORMATIION:
The list of asssigned read
T dings and ca ases is provid ded under th he Required Textbooks and a Materialss Section.
S
Supplemental l reading matterials may bee posted elecctronically. Ad
dvance preparation and en nthusiastic paarticipation
in
n on-line classs discussions e learning experience in th
s is an importtant part of the his course and
d will be evalu
uated.

The course has been designed to allow

T w flexible maanagement off your time. There
T will be no quizzes or
o exams,
w the individual written paper taking the place off a final exam
with m. You will be
e required to work in grou ups of 3-5
s
students per group.
g Each student shou n in the Discussion area off eLearning prior
uld post a Sellf-Introduction p to the
f
first class. Thhis information
n will be used to set up my
m grade boo ok and assistt in the formaation of group
ps for the
c
course. Choo ose team members, and sign s up by ussing the on-linne Group Forrmation Tool by 1/19. If necessary,
the instructor will assign stu
udents to a te
eam, and we’ll finalize the members of each
e Group byb 1/25. For all
a projects
c
completed in a group, your grade for thhe assignmen nt will be adjuusted based ono a peer evaluation input made at
the end of the e semester (seee peer evaluuation form att end of syllab
bus).

All students will

A w be requirred to read all a of the cases, think abo out the questtions posted by the instru uctor, and
p
prepare for annd participatee in class disscussion of eaach case, witth a participa ation grade assigned
a based on the
in
ndividual’s paarticipation (quality of on-lin
ne commentss, contribution ns to the overrall discussionn, and reasonnable level
o participation). In genera
of al, three mea aningful postss will yield full credit for pa
articipation in each case. AllA cases,
e
except for thee first two caases (Zip Car and Clarkson Lumber) and the case es highlightedd as primarily reading
a
assignments, will be assig
gned to a gro oup after grouups are form med. For casses assigned to a group, the t group
a
assigned will be responsible for completing a written analysis of th he cases (bassed on the qu uestions poste ed on-line
b the instrucctor for each case).
by c The assigned grou up will also be e responsible for leading class
c discussiion on the
c
case that will include disccussion of the eir suggestedd solution and d subsequen nt questions oro inputs mad de by the
in
nstructor of other
o studentss after the grooup turns in their
t written analysis.
a Thee assigned grroup will be graded
g on
their written analysis of thee case and their effectiveness in leading g the on-line discussion. In general, there can
b multiple an
be nswers to the case questio ons depending g on interprettation, and po oints will be awarded
a base
ed on your
a
analysis, ratio
onale and sup pport as well asa the on-linee discussion. The first two o written casee assignmentss (Zip Car
a Clarkson)) and the Res
and search Reporrt (due April 9th) will be co ompleted indivvidually. For Zip Car and Clarkson,
in
ndividual grad ased on yourr written analyysis and your participation in on-line discussion that I will lead.
ding will be ba
L
Late in the seemester, we will
w also postt highlights off some of the e Research Reports
R and will
w review an nd discuss
these as a cla ass. Cases designated
d ass being primaarily reading should
s be reaad by all studeents with somme on-line
d
discussion of the topics to follow.
f
Overall, your grade
O g will be based on you ur two individual written asssignments (i.e., the first tw
wo cases), pa
articipation
a adding va
and our individual research rep
alue to all of the on-line diiscussions, yo port, and you ur group’s ana
alysis and
d
discussion of the cases as ssigned to yoour group. (A Also see case e analysis rub
bric that will be
b used in grrading the
in
ndividual and
d group written n case assignnments.)

S
SPECIAL ASS
SIGNMENT:

Research Rep
R port: A written
n research repport is require
ed on a topic related to the
e course, suchh as start-up financing,
f
term sheet terrms, trends inn the venture capital or anggel industry, evaluation
e of a VC firm, valuation techniiques,
e
etc. Report toopic needs to be approved in advance. Each studen nt should subbmit two (or more)
m rank ord
dered
r
report topics for
f approval by b 2/15/09. Maximum
M leng
gth of Researrch Report is 10 pages (typ ped, double spaced).
s

G
GRADE WEIG
GHTINGS:

E
ENTP 6315/FIN 63315 Online Syllabu
us - Spring 2010 - Senior Lecturer: Madison
M Pedigo - Revised: 4-5-10
Individual writtten analysis of
o first two cases 20%
C
Cases assigned to each Group; Written Submission plus leading on-lineo discusssion 30%
W
Written Reseaarch Report (a an Individual Assignment) 20%
P
Participation in all on-line discussions
d (in
ncluding all cases and research report highlights) 30%
T
Total 100%

G
GRADING SC
CALE:

Scaled Score
S Lettter Equivalennt
97-100 A+
94-96 A
90-93 A-
87-89 B+
84-86 B
80-83 B-
77-79 C+
74-76 C
70-73 C-
>70 P
Less thann 70 F
Incomplete I

A
ACCESSING GRADES:

Students can check their grades by clickking “My Grad

S des” under Co
ourse Tools after
a the grade
e for each assessment
task is release
ed.

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C
COURSE A
AND INSTR
RUCTOR PO
OLICIES:
S
SELF INTROD
DUCTION:
Each student should post a Self-Introduction in the Discussion
E D are
ea of eLearninng prior to the
e first class seession,
a no later th
and han the end of
o the first sesssion week ass noted in the Assignmentss and Academ mic Calendar.
G
Guidelines are
e provided on
n the eLearnin ng group formmation sectionn. This informa
ation will assiist in the form
mation of
g
groups for the
e course, and will assist in the formation
n of groups.

F
FORMATION S:
OF GROUPS
Much of the work
M w in this co
ourse will be performed
p in groups.
g Stude
ents should fo
orm small grooups (3-5 mem mbers)
d
during the first two weeks of o the course.. Select team members an nd sign up for a group on-line using the group

E
ENTP 6315/FIN 63315 Online Syllabu
us - Spring 2010 - Senior Lecturer: Madison
M Pedigo - Revised: 4-5-10