FIN7260 (T01) (3.0 CH) ENTREPRENEURSHIP FINANCE WINTER 2015

Transcription

1 FIN7260 (T01) (3.0 CH) ENTREPRENEURSHIP FINANCE WINTER 2015 Effective August 2013, the University will ONLY use yur U f M accunt fr fficial cmmunicatins, including messages frm the MBA Office, yur prfessrs, and ther University administrative ffices. CLAIM YOUR U f M ACCOUNT at It is YOUR respnsibility t check it daily fr ALL University cmmunicatin. All messages generated by Desire2Learn (D2L) are sent t this address. INSTRUCTOR Name: Zhenyu Wu Phne: Office Lcatin: 416 Drake Fax: Office Hurs: 2:00-3:30pm r by appintment [email protected] Class Time: 6:15-9:30pm Thursdays COURSE DESCRIPTION This curse n entrepreneurial finance addresses bth investment and financing decisins f new ventures bth in thery and in practice. COURSE OBJECTIVES There has been dramatic creatin f value thrugh new ventures. Private equity has becme a large part f the capital market because regulatry changes have enabled the invlvement f institutinal investrs. Parallel t this, academic research n entrepreneurial finance has made gd use f tls frm mainstream finance and ecnmics. As a result, we nw have scientifically established principles and theretical explanatins fr many f the practices and rules f thumb used t finance new ventures. This curse adpts an apprach balanced between the theretical and practical which is intended t prvide students with a mre systematic understanding abut the special prblems related t launching and financing a new venture. Seeing hw financial principles are applied t valuing and financing new ventures will, hpefully, deepen students' understanding f financial thery. The curse is planned arund the fllwing activities: readings, lectures, case studies, frecasting and valuatin prblems, and a final case exam. Readings are mainly frm the textbk and a package prepared by the Harvard Business Schl. The exercises are designed t further develp students'

2 cnfidence and skill in financial analysis while the case studies will require applicatin f judgment in additin t analysis. COURSE MATERIALS Required Package fr Cases and Reading Materials frm Harvard Business Schl A package f cases and reading materials prepared by the Harvard Business Schl is required fr this curse. It can be purchased and accessed nline using the fllwing link: The 10 items are rganized as the fllwing: Reading Materials fr Part I: Intrductin t Entrepreneurial Finance: by Paul A. Gmpers Angels and Venture Capitalists: Fr Serius Outside Equity: by HBS Press New Venture Financing: by Hward H. Stevensn and Michael J. Rberts Reading Materials fr Part II: Nte n Valuatin f Venture Capital Deals: by Thmas Hellmann Deal Structure and Deal Terms: by Michael J. Rberts and Hward H. Stevensn Nte n Financial Cntracting: "Deals": by William A. Sahlman Cases: Internet Securities, Inc.: Financing Grwth: by Walter Kuemmerle and Chad Ellis Neverfail Cmputing: by Dan D Heilly, Kevin Ebel, and William D. Bygrave Zts (A): by Michael J. Rberts, William A Sahlman, and Tdd Krasnw A case fr the final case exam: available n March 27, 2015 Optinal Reading Jeffry A. Timmns, Stephen Spinelli, and Presctt C. Ensign (2010). New Venture Creatin: Entrepreneurship fr the 21st Century. McGraw-Hill/Ryersn, Canadian editin. A cpy f this text will be put n reserve in the Albert D.Chen library n the main flr f the Drake Centre. COURSE ASSESSMENT Teams Teams will be frmed befre the end f Week 3. Each team must wrk tgether n grup-based assessments thrugh the whle semester. At the end f the semester, each member in a team will be required t evaluate the ther members cntributin, and grades assigned t each team will take the peer evaluatin int accunt. 2

3 Assessment Tasks 1 Case Study 25% Team Wrk 1 Quiz 20% Individual wrk Class Participatin 20% Individual Final Case Exam 35% Team wrk Case Studies: Each student team will make ne case presentatin and submit ne case analysis reprt during the semester. Quiz: There will be ne in-class quiz n April 9, It will be individual wrk, and will be based n relevant lectures. It has tw cmpnents, essays and calculatins. Everybdy must write the quizzes n the scheduled dates, except fr cmpassinate r medical reasns which must be accmpanied by a Medical Absenteeism Frm signed by the student and the attending physician. In cases invlving wrk travel r wrk cmmitment, the applicatin must be signed by the students emplyer. The quiz can als be rescheduled due t MBA endrsed student cmpetitins. Persnal/vacatin travel will nt be accmmdated unless fr a funeral. Under these circumstances, a deferred quiz will be scheduled. Class Participatin: Class participatin grade is received thrugh class presentatins, inquiring questins, insightful cmments, sharing f relevant experience, and class attendance. Quality is mre imprtant than quantity. Final Case Exam: The final case exam will be a take-hme exam, and it requires team wrk. The case and the detailed instructins will be prvided by the prfessr at the end f the term. Reprts are required t be submitted t the prfessr via ([email protected]) BEFORE r AT 5pm April 26, N late submissins will be accepted. Final grades will be assigned as fllws: Cumulative Marks Grade GPA Perfrmance A+ 4.5 Excellent A 4.0 Very Gd B+ 3.5 Gd B 3.0 Satisfactry C+ 2.5 Marginal C 2.0 Unsatisfactry D 1.0 Unsatisfactry Belw 50 F 0.0 Unsatisfactry 3

4 TENTATIVE COURSE SCHEDULE Date Tpic/Assignment Readings Jan 29 Feb 5, 12 & 26 Mar 5 Mar 12, 19, 26 Apr 2 Apr 9 Intrductin t Entrepreneurial Finance Review f Crprate Finance Tpics Part 1. Thery f New Venture Financing Financial Frecasting Thery and Practice Thery f New Venture Finance Mechanics f Valuatin Review f Financing Theries Structuring the Financing Deal New venture valuatin and financing prblem Guest Speaker(s): TBD Case: Zts (A) Case: Neverfail Cmputing Case: Internet Securities, Inc.: Financing Grwth Guest Speaker(s): TBD Optinal: Timmns et al.- Chapters 1, 2, 3 Reading Materials fr Part I in the Package Optinal: Timmns et al.- Chapters 12, 13, & 15 Reading Materials fr Part II in the Package Optinal: Timmns et al. - Chapters 4-11 Quiz - New Venture Financing Thery, Valuatin, and Analytic Skills ACADEMIC REGULATIONS Students are encuraged t cntact Accessibility Services at r the instructr shuld special arrangements need t be made t meet curse requirements. Fr further infrmatin please visit EXAM RESCHEDULING POLICY Students are expected t write ALL exams with their classmates at the scheduled exam time. Requests fr exam rescheduling must be referred t the Graduate Prgram Office. Please refer t Missing a Test/Exam n page 14 f the MBA Student Handbk fr further infrmatin: _August_2014.pdf UNCLAIMED ASSIGNMENT POLICY Pursuant t the FIPPA Review Cmmittee s apprved recmmendatins as f August 15, 2007, all unclaimed student assignments will becme the prperty f the faculty and will be subject t destructin six mnths after the cmpletin f any given academic term. 4

5 ACADEMIC INTEGRITY I.H. Asper Schl f Business, The University f Manitba It is critical t the reputatin f the I. H. Asper Schl f Business and f ur degrees that everyne assciated with ur faculty behaves with the highest academic integrity. As the faculty that helps create business and gvernment leaders, we have a special bligatin t ensure that ur ethical standards are beynd reprach. Any dishnesty in ur academic transactins vilates this trust. The University f Manitba Graduate Calendar addresses the issue f academic dishnesty under the heading Plagiarism and Cheating. Specifically, acts f academic dishnesty include, but are nt limited t: using the exact wrds f a published r unpublished authr withut qutatin marks and withut referencing the surce f these wrds duplicating a table, graph r diagram, in whle r in part, withut referencing the surce paraphrasing the cnceptual framewrk, research design, interpretatin, r any ther ideas f anther persn, whether written r verbal (e.g., persnal cmmunicatins, ideas frm a verbal presentatin) withut referencing the surce cpying the answers f anther student in any test, examinatin, r take-hme assignment prviding answers t anther student in any test, examinatin, r take-hme assignment taking any unauthrized materials int an examinatin r term test (crib ntes) impersnating anther student r allwing anther persn t impersnate neself fr the purpse f submitting academic wrk r writing any test r examinatin stealing r mutilating library materials accessing tests prir t the time and date f the sitting changing name r answer(s) n a test after that test has been graded and returned submitting the same paper r prtins theref fr mre than ne assignment, withut discussins with the instructrs invlved. Many curses in the I. H. Asper Schl f Business require grup prjects. Students shuld be aware that grup prjects are subject t the same rules regarding academic dishnesty. Because f the unique nature f grup prjects, all grup members must exercise extrardinary care t insure that the grup prject des nt vilate the plicy n Academic Integrity. Shuld a vilatin ccur n a grup prject, all grup members will be held jintly accuntable, n matter what their individual level f invlvement in the specific vilatin. Sme curses, while nt requiring grup prjects, encurage students t wrk tgether in grups (r at least d nt prhibit it) befre submitting individual assignments. Students are encuraged t discuss this issue as it relates t academic integrity with their instructr t avid vilating this plicy. In the I. H. Asper Schl f Business, all suspected cases f academic dishnesty invlving a graduate student (i.e. MBA, MSc r PhD student) will be reprted directly by the instructr t the Dean f the Faculty f Graduate Studies.

6 FACULTY BIOGRAPHY I.H. Asper Schl f Business, The University f Manitba Dr. Zhenyu Wu Canada Research Chair in Entrepreneurship and Innvatin Head and Assciate Prfessr Department f Business Administratin I.H. Asper Schl f Business University f Manitba Dr. Zhenyu Wu hlds an MA in Ecnmics, an MBA in Finance, and a Ph.D. in Finance frm the University f Calgary. He als hlds the psitin f Canada Research Chair (CRC) in Entrepreneurship and Innvatin, and is the Head and Assciate Prfessr (tenured) in Department f Business Administratin at the University f Manitba. Befre being the CRC, he held the Stu Clark Prfessrship in Financial Management at the I.H. Asper Schl f Business. Zhenyu jined the University f Manitba in Befre that, he was an Assciate prfessr and held the ptin f Centre fr Strategic Financial Management Schlar f Crprate Gvernance at the Edwards Schl f Business, University f Saskatchewan. He taught curses such as New Venture Finance, Entrepreneurial Finance and Venture Capital, Small Business Finance, and New Venture Analysis at the University f Calgary, University f Saskatchewan, and University f Manitba. Zhenyu s research primarily fcuses n entrepreneurship, entrepreneurial finance, and crprate gvernance, especially the applicatin f agency thery in these fields. He als serves n the editrial bards f Entrepreneurship Thery and Practice, Family Business Review, and Asian Jurnal f Finance & Accunting, and is a reviewer at leading jurnals such as Jurnal f Business Venturing, Eurpean Jurnal f Finance, amng thers. Since 2006, Zhenyu has published ver 40 refereed articles in jurnals including Jurnal f Business Venturing, Entrepreneurship Thery and Practice, and Jurnal f Small Business Management, and multiple bk chapters. Zhenyu c-rganized the Shanghai Cnference n Finance and Entrepreneurship and Pingya Frum, and served as a c-guest editr f special issues with Internatinal Review f Financial Analysis and Internatinal Jurnal f Managerial Finance. He was als ne f the c-rganizers f the 1st and 2nd Edwards Sympsiums hsted by the Edwards Schl f Business, University f Saskatchewan, and served n the prgram cmmittees f many majr cnferences. He served as an invited speaker at varius cnferences and wrkshps fcusing n entrepreneurship, finance, and family business.