New Venture Funding

Overview

Even the most ingenious ideas need finance to bring them to life. This unit will demystify how to secure backing for new business ventures. Students will identify their specific financial needs and find relevant funding sources. They will become familiar with the world of angel investors, investment managers, and venture capitalists, and learn how to gain their support. Leading investors and entrepreneurs will share their experiences in industry and provide feedback. Students will build the confidence and tools they need to turn their vision into a commercial reality.

Unit learning outcomes

Students who successfully complete this unit will be able to:

1. Experiment and build financial models for start-ups
2. Identify and evaluate different sources of funding to support start-ups
3. Critically evaluate and determine the funding needs of start-ups
4. Determine the value of a start-up and negotiate with potential investors
5. Work individually or collaboratively to prepare a term sheet to raise equity

Teaching methods

Hawthorn

Assessment

Content

• What are the financial statements?  
• How to do financial performance analysis?  
• How to conduct financial forecasting, and which methods to employ?  
• How to assess funding needs of a start-up?  
• How to value an early-stage start-up, and which valuation methods to use?  
• Where are the local and international sources of funding for start-ups? 
• What are exit strategies for investors and start-up entrepreneurs?  
• What is a term-sheet, and how is it prepared?