Students
MGSM847 – Entrepreneurial Finance
2019 – Term 2 North Ryde
General Information
Download as PDF
| Unit convenor and teaching staff |
Unit convenor and teaching staff
Karl Rodrigues
Block Class: April 26-28, May 11-12 2019
|
|---|---|
| Credit points |
Credit points
4
|
| Prerequisites |
Prerequisites
MGSM840 or MGNT803
|
| Corequisites |
Corequisites
|
| Co-badged status |
Co-badged status
|
| Unit description |
Unit description
Entrepreneurial Finance examines the theory and practice associated with the financing of new ventures. This unit explores sources of funding, risk, venture capital financing terms and models, value creation, and exits. This study of entrepreneurial finance will enhance your ability to finance and launch new ventures, from both the viewpoints of the entrepreneur and external investors.
|
Important Academic Dates
Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates
Learning Outcomes
On successful completion of this unit, you will be able to:
- Critically analyse the financial aspects of new venture business strategy and planning to choose the best source of financing.
- Critically consider the role of diverse mindsets of different cultures and markets in how investors may view opportunities.
- Assess and integrate ethical, social and environmental considerations for responsible new venture financing.
- Critically analyse stakeholder relationships to generate new venture finance strategies that create and deliver sustainable value across complex networks.
General Assessment Information
No extensions will be granted. There will be a deduction of 10% of the total available marks made from the total awarded mark for each 24 hour period or part thereof that the submission is late (for example, 25 hours late in submission – 20% penalty). This penalty does not apply for cases in which an application for Special Consideration is made and approved.
Assessment Tasks
| Name | Weighting | Hurdle | Due |
|---|---|---|---|
| Group Case Presentation | 15% | No | 12/05/2019 |
| Group Case Term Sheet & Report | 15% | No | 26/05/2019 |
| Individual Assignment | 30% | No | 19/05/2019 |
| Final Exam | 40% | No | Exam Week: 10-15 June 2019 |
Group Case Presentation
Due: 12/05/2019
Weighting: 15%
Length:
30 – 45 minutes
Format:
Presentation including Q&A
Groups of up to six students (group size might be adjusted based on class size) will prepare the case studies for presentation (30 – 45 mins). Further details will be provided in class.
Criteria and standards for grading will be provided in class.
On successful completion you will be able to:
- Critically analyse the financial aspects of new venture business strategy and planning to choose the best source of financing.
- Critically consider the role of diverse mindsets of different cultures and markets in how investors may view opportunities.
- Assess and integrate ethical, social and environmental considerations for responsible new venture financing.
- Critically analyse stakeholder relationships to generate new venture finance strategies that create and deliver sustainable value across complex networks.
Group Case Term Sheet & Report
Due: 26/05/2019
Weighting: 15%
Format:
Term Sheet and Report
An agreed Term Sheet and Report, based on the Presentation of group case studies from the earlier assessment task, must be submitted by 11:59pm on the due date. Further details will be provided in class.
Criteria and standards for grading will be provided in class.
Both Group Work assignments need to clearly identify the contribution of each team member to the group.
On successful completion you will be able to:
- Critically analyse the financial aspects of new venture business strategy and planning to choose the best source of financing.
- Critically consider the role of diverse mindsets of different cultures and markets in how investors may view opportunities.
- Assess and integrate ethical, social and environmental considerations for responsible new venture financing.
- Critically analyse stakeholder relationships to generate new venture finance strategies that create and deliver sustainable value across complex networks.
Individual Assignment
Due: 19/05/2019
Weighting: 30%
Format:
Short Answers and Calculations
An individual short answer and calculation question set will be handed out at the end of the final class. The answers must be submitted by 11:59pm on the due date. Subject to the provisions and evidence requirements within the University Special Consideration policy, failure to submit the answers on time will result in a zero mark for this assessment.
Criteria and standards for grading will be provided in class.
On successful completion you will be able to:
- Critically analyse the financial aspects of new venture business strategy and planning to choose the best source of financing.
- Critically consider the role of diverse mindsets of different cultures and markets in how investors may view opportunities.
- Assess and integrate ethical, social and environmental considerations for responsible new venture financing.
- Critically analyse stakeholder relationships to generate new venture finance strategies that create and deliver sustainable value across complex networks.
Final Exam
Due: Exam Week: 10-15 June 2019
Weighting: 40%
Format:
3hr + 10 mins reading time
An Open Book exam will be conducted during the MGSM Exam Week. The format will comprise a mixture of short answers and more detailed analysis questions including calculations.
The Exam will be based on the Individual Case Study supplied in class
On successful completion you will be able to:
- Critically analyse the financial aspects of new venture business strategy and planning to choose the best source of financing.
- Critically analyse stakeholder relationships to generate new venture finance strategies that create and deliver sustainable value across complex networks.
Delivery and Resources
Required Text
Leach, J.C. & Melicher, R.W., Entrepreneurial Finance, 6th Edition, Cengage Learning, ISBN: 9781305968356
For information on textbook prices and online ordering, please refer to the Co-Op Bookshop webpage at http://www.coop.com.au
Unit Materials & Other Readings
Aside from the assigned textbook readings from the prescribed text, all other reading materials are incorporated in the unit folder (as listed above under the heading ‘Classes’ and below under the heading ‘Session Topics and Readings’).
MGSM iLearn
The web page for this unit can be found at: https://ilearn.mq.edu.au/login/MGSM
|
Essential Readings (Provided in the MGSM847 Unit Folder) |
|
New Venture Financing Stevenson. H.H., & Roberts, M.J. (2002). New Venture Financing, Harvard Business School Publishing, Boston, pp. 1–13. |
|
Neverfail Computing (A) D’Heilly, D., Ebel, K., & Bygrave, W.D. (2004). Neverfail Computing, Babson College, Harvard Business School Publishing, Boston, pp. 1–22. |
|
Funding New Ventures: Valuation, Financing and Capitalization Tables Roberts, M.J. (2005). Funding New Ventures: Valuation, Financing and Capitalization Tables, Harvard Business School Publishing, Boston, pp. 1–5. |
|
Deal Structure and Deal Terms Roberts, M.J., & Stevenson. H.H. (2005). Deal Structure and Deal Terms, Harvard Business School Publishing, Boston, pp. 1–8. |
|
SpiffyTerm Inc. Hellmann. T. (2001). Spiffy Term, Inc.: January 2000, Stanford Graduate School of Business, Harvard Business School Publishing, Boston, pp. 1–12. |
|
The Failure Chronicles Various (2011). Harvard Business Review, Harvard Business Publishing |
|
Group Case Studies |
|
To be supplied at the start of class |
|
Individual Case Study |
|
To be supplied at the start of class |
Unit Schedule
Block Class: April 26-28, May 11-12 2019
|
Session |
Date |
Topic |
Reading |
|
1 |
26 April 2019 |
Introduction and Context |
Leach & Melicher (Textbook) Chapters 1, 2 & 3
New Venture Financing |
|
2 |
26 April 2019 |
Planning |
Leach & Melicher (Textbook) Chapters 4, 6 & 7
Neverfail (A) |
|
3 |
27 April 2019 |
Valuation |
Leach & Melicher (Textbook) Chapters 9 & 10
Funding New Ventures: Valuation, Financing and Capital Tables |
|
4 |
27 April 2019 |
Venture Capital |
Leach & Melicher (Textbook) Chapters 11 |
|
5 |
28 April 2019 |
Term Sheets |
Deal Structure and Deal Terms |
|
6 |
28 April 2019 |
Deal Financing Detail Workshop 1 |
Spiffy Term Inc. |
|
7 |
11 May 2019 |
Deal Financing Detail Workshop 2 |
|
|
8 |
11 May 2019 |
Harvesting and Exits |
Leach & Melicher (Textbook) Chapters 15 (skim 16)
The Failure Chronicles |
|
9 |
12 May 2019 |
Presentations |
|
|
10 |
12 May 2019 |
Integration and Review |
|
Learning and Teaching Activities
Teaching Methods
Policies and Procedures
Macquarie University policies and procedures are accessible from Policy Central (https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/policy-central). Students should be aware of the following policies in particular with regard to Learning and Teaching:
- Academic Appeals Policy
- Academic Integrity Policy
- Academic Progression Policy
- Assessment Policy
- Fitness to Practice Procedure
- Grade Appeal Policy
- Complaint Management Procedure for Students and Members of the Public
- Special Consideration Policy (Note: The Special Consideration Policy is effective from 4 December 2017 and replaces the Disruption to Studies Policy.)
Undergraduate students seeking more policy resources can visit the Student Policy Gateway (https://students.mq.edu.au/support/study/student-policy-gateway). It is your one-stop-shop for the key policies you need to know about throughout your undergraduate student journey.
If you would like to see all the policies relevant to Learning and Teaching visit Policy Central (https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/policy-central).
Student Code of Conduct
Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/study/getting-started/student-conduct
Results
Results published on platform other than eStudent, (eg. iLearn, Coursera etc.) or released directly by your Unit Convenor, are not confirmed as they are subject to final approval by the University. Once approved, final results will be sent to your student email address and will be made available in eStudent. For more information visit ask.mq.edu.au or if you are a Global MBA student contact globalmba.support@mq.edu.au
Student Support
Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/
Learning Skills
Learning Skills (mq.edu.au/learningskills) provides academic writing resources and study strategies to improve your marks and take control of your study.
Student Services and Support
Students with a disability are encouraged to contact the Disability Service who can provide appropriate help with any issues that arise during their studies.
Student Enquiries
For all student enquiries, visit Student Connect at ask.mq.edu.au
If you are a Global MBA student contact globalmba.support@mq.edu.au
IT Help
For help with University computer systems and technology, visit http://www.mq.edu.au/about_us/offices_and_units/information_technology/help/.
When using the University's IT, you must adhere to the Acceptable Use of IT Resources Policy. The policy applies to all who connect to the MQ network including students.
Graduate Capabilities
PG - Capable of Professional and Personal Judgment and Initiative
Our postgraduates will demonstrate a high standard of discernment and common sense in their professional and personal judgment. They will have the ability to make informed choices and decisions that reflect both the nature of their professional work and their personal perspectives.
This graduate capability is supported by:
Learning outcomes
- Critically analyse the financial aspects of new venture business strategy and planning to choose the best source of financing.
- Critically consider the role of diverse mindsets of different cultures and markets in how investors may view opportunities.
- Critically analyse stakeholder relationships to generate new venture finance strategies that create and deliver sustainable value across complex networks.
Assessment tasks
- Group Case Presentation
- Group Case Term Sheet & Report
- Individual Assignment
- Final Exam
Learning and teaching activities
- A variety of teaching and learning strategies will be applied in this subject. These strategies include lectures and class discussions on the topics raised in the text, class discussions of case studies, and the application of the various entrepreneurial finance techniques to particular decisions scenarios. Assessment will be through written group case submissions, group case presentations, and a final exam.
PG - Discipline Knowledge and Skills
Our postgraduates will be able to demonstrate a significantly enhanced depth and breadth of knowledge, scholarly understanding, and specific subject content knowledge in their chosen fields.
This graduate capability is supported by:
Learning outcomes
- Critically analyse the financial aspects of new venture business strategy and planning to choose the best source of financing.
- Critically analyse stakeholder relationships to generate new venture finance strategies that create and deliver sustainable value across complex networks.
Assessment tasks
- Group Case Presentation
- Group Case Term Sheet & Report
- Individual Assignment
- Final Exam
Learning and teaching activities
- A variety of teaching and learning strategies will be applied in this subject. These strategies include lectures and class discussions on the topics raised in the text, class discussions of case studies, and the application of the various entrepreneurial finance techniques to particular decisions scenarios. Assessment will be through written group case submissions, group case presentations, and a final exam.
PG - Critical, Analytical and Integrative Thinking
Our postgraduates will be capable of utilising and reflecting on prior knowledge and experience, of applying higher level critical thinking skills, and of integrating and synthesising learning and knowledge from a range of sources and environments. A characteristic of this form of thinking is the generation of new, professionally oriented knowledge through personal or group-based critique of practice and theory.
This graduate capability is supported by:
Learning outcomes
- Critically analyse the financial aspects of new venture business strategy and planning to choose the best source of financing.
- Critically analyse stakeholder relationships to generate new venture finance strategies that create and deliver sustainable value across complex networks.
Assessment tasks
- Group Case Presentation
- Group Case Term Sheet & Report
- Individual Assignment
- Final Exam
Learning and teaching activities
- A variety of teaching and learning strategies will be applied in this subject. These strategies include lectures and class discussions on the topics raised in the text, class discussions of case studies, and the application of the various entrepreneurial finance techniques to particular decisions scenarios. Assessment will be through written group case submissions, group case presentations, and a final exam.
PG - Research and Problem Solving Capability
Our postgraduates will be capable of systematic enquiry; able to use research skills to create new knowledge that can be applied to real world issues, or contribute to a field of study or practice to enhance society. They will be capable of creative questioning, problem finding and problem solving.
This graduate capability is supported by:
Learning outcomes
- Critically analyse the financial aspects of new venture business strategy and planning to choose the best source of financing.
- Assess and integrate ethical, social and environmental considerations for responsible new venture financing.
- Critically analyse stakeholder relationships to generate new venture finance strategies that create and deliver sustainable value across complex networks.
Assessment tasks
- Group Case Presentation
- Group Case Term Sheet & Report
- Individual Assignment
Learning and teaching activities
- A variety of teaching and learning strategies will be applied in this subject. These strategies include lectures and class discussions on the topics raised in the text, class discussions of case studies, and the application of the various entrepreneurial finance techniques to particular decisions scenarios. Assessment will be through written group case submissions, group case presentations, and a final exam.
PG - Effective Communication
Our postgraduates will be able to communicate effectively and convey their views to different social, cultural, and professional audiences. They will be able to use a variety of technologically supported media to communicate with empathy using a range of written, spoken or visual formats.
This graduate capability is supported by:
Learning outcomes
- Critically consider the role of diverse mindsets of different cultures and markets in how investors may view opportunities.
- Assess and integrate ethical, social and environmental considerations for responsible new venture financing.
- Critically analyse stakeholder relationships to generate new venture finance strategies that create and deliver sustainable value across complex networks.
Assessment tasks
- Group Case Presentation
- Group Case Term Sheet & Report
- Individual Assignment
- Final Exam
Learning and teaching activities
- A variety of teaching and learning strategies will be applied in this subject. These strategies include lectures and class discussions on the topics raised in the text, class discussions of case studies, and the application of the various entrepreneurial finance techniques to particular decisions scenarios. Assessment will be through written group case submissions, group case presentations, and a final exam.
PG - Engaged and Responsible, Active and Ethical Citizens
Our postgraduates will be ethically aware and capable of confident transformative action in relation to their professional responsibilities and the wider community. They will have a sense of connectedness with others and country and have a sense of mutual obligation. They will be able to appreciate the impact of their professional roles for social justice and inclusion related to national and global issues
This graduate capability is supported by:
Learning outcomes
- Critically consider the role of diverse mindsets of different cultures and markets in how investors may view opportunities.
- Assess and integrate ethical, social and environmental considerations for responsible new venture financing.
- Critically analyse stakeholder relationships to generate new venture finance strategies that create and deliver sustainable value across complex networks.
Assessment tasks
- Group Case Presentation
- Group Case Term Sheet & Report
- Individual Assignment
Learning and teaching activities
- A variety of teaching and learning strategies will be applied in this subject. These strategies include lectures and class discussions on the topics raised in the text, class discussions of case studies, and the application of the various entrepreneurial finance techniques to particular decisions scenarios. Assessment will be through written group case submissions, group case presentations, and a final exam.
Changes from Previous Offering
No changes from previous offering.
Alignment with MGSM’s mission-driven attributes
Leadership: The unit develops skills required of leaders with respect to the application and assessment of complex or ambiguous financial information in order to make well informed and robust investment decisions.
Global mindset: The unit enhanced my ability to assess the implications of strategic decisions from a whole of entity perspective, across a wide spectrum of stakeholders
Citizenship: The unit encouraged me to apply a true and fair view approach to reporting and disclosure where discretion exists related to accounting policies and financial strategies.
Creating sustainable value: The unit develops skills required to execute within the national innovation system and create or assess new entrepreneurial businesses.
Attendance Policy (MGSM)
The interactive environment of the classroom is central to the MGSM experience. Students are required to attend the full duration of all classes for the units in which they are enrolled. We recognise that exceptional circumstances may occur, such as unavoidable travel on behalf of your organization or the serious illness or injury of you or a close family member. Special consideration may be given for a maximum of 20% non-attendance for such circumstances as long as lecturers are contacted in advance, and supporting documentation provided, to request exemption from attendance. Failure to abide by these conditions may result in automatic withdrawal, with academic and/or financial penalty. The full Student Attendance Policy is published in the MGSM Student Handbook at https://students.mgsm.edu.au/handbook
Content Disclaimer
The content of this unit is provided for educational purposes only and no decision should be made based on the material without obtaining independent professional advice relating to the particular circumstances involved.