MLD-839M: Entrepreneurial Finance II

Semester: Spr Mod4

Credit: 0.5

Faculty: Carl Byers

Schedule

Day Time Location
First Day 3/23
Meet Day M/W 2:40 PM - 4:00 PM LAND
Review

Description

Developing a clear venture concept and gaining a strong command of the language of finance are essential prerequisites to the successful launch of any venture. To bring their ideas to fruition, entrepreneurs must engage in markets for targeted clients, for financial capital, and for social impact. This requires entrepreneurs to link their business plans to the critical drivers of financial success and to communicate the financial dynamics of their organizations to stakeholders in a compelling way. “Lean Startup” concepts such as customer development, minimal-viable-product, product-market fit, pivoting, and scaling require real-world feedback from clients and a sophisticated approach to planning, funding, and management. This course builds on the foundation of plan development and language-learning students engaged in in Entrepreneurial Finance I to help social entrepreneurs to implement their proposals in the real world of finance. Subject matter will include applied methods for developing customers and achieving product/market fit linked to milestone-driven fund-raising model. We also will relate each student’s understanding of the unique economic drivers of his/her venture to the successful development of the organization’s strategy, forecasts, systems, and culture. The fund raising process will be explored in more depth related to not-for-profit, for-profit social enterprise, and hybrid ventures. This exploration will include alternative methods of valuing an enterprise in both financial and social terms. The course will also tie the financing process to issues of governance, capital structure, and financial operations. Lecture, discussion, case studies and small working groups are employed in the class. In addition, simulations of real-world application will be conducted in groups. Each student will continue to pursue a unique plan and will engage in a project to develop a compelling financial presentation that could be used as the basis for raising funds from investors or philanthropists. The course concludes with a panel-judged business plan competition within the class for those who chose to enter. Weekly short assignments focus on concrete steps required to develop each student’s venture concept (graded check, check minus or check plus). Content grades are based 1/3 on the weekly short assignments, 1/3 on the financial presentation project, and 1/3 on a final exam. Participation is a community expectation, which also can impact final grades. Prerequisite: MLD-829M or permission of the instructor.

 

 


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