Argomenti dell'insegnamento
In this course, the aim is that students understand the distinct differences between corporate finance and entrepreneurial finance. While corporate finance deals with established firms that rely on historical data, stable cash flows, and access to capital markets, entrepreneurial finance focuses on start-ups that often operate with limited information, high uncertainty, and unconventional funding sources. Students will see why financing decisions for new ventures are fundamentally different and why understanding this distinction is critical for anyone interested in entrepreneurship, innovation, or investing in young firms.
The course begins by looking at the survival and growth dynamics of start-ups, highlighting why half of all new ventures fail within the first years and why others manage to grow into established players. Students will learn how financial planning and business plans are used in this context and how they differ from those in large corporations. We then move to financial markets, the risk–return trade-off, and the cost of capital, with special emphasis on estimating the cost of equity for private firms. Real-world situations, such as the valuation challenges of high-growth firms, are used to illustrate how capital structure choices and financial distress play out in entrepreneurial settings.
Students will also examine the spectrum of financing options, ranging from bootstrapping and crowdfunding platforms to business angels and venture capital funds. They will analyze the venture capital cycle, deal structuring, staged financing, and the negotiations that shape the relationship between entrepreneurs and investors.
Valuation is another central focus of the course. Students will learn how to value early-stage ventures using theoretical tools such as NPV and IRR while also considering the complexity and uncertainty of real-world start-ups. Finally, harvesting and exit strategies are studied, including mergers and acquisitions, IPOs, and recent innovations such as SPACs, illustrated with current market developments.
The course combines analytical tools with case discussions, exercises, and guest lectures from practitioners, giving students not only the theoretical background but also practical insights into how entrepreneurs and investors make financing decisions that shape the success of start-ups.
Modalità di insegnamento
The course is mainly taught through front lecturing, complemented by exercises and discussions. In addition, guest lectures are planned to provide practitioner perspectives. In the past, invited speakers included business angels, venture capital investors, and regional start-ups sharing their own experiences.