This course has two primary objectives: (1) to provide an understanding of the formation and financing of startups and other small businesses, and (2) to provide a foundational understanding of the principles of finance and how they relate to business entities. Students will learn how funding from angel investors, venture capital funds, private equity funds and corporate partners finds its way to entrepreneurial pursuits.
Methods of valuation and the distinct concerns and points of view of the business and the potential investors will be analyzed and understood. Topics include the time value of money, risk and return, cost of capital, capital market efficiency, capital budgeting, cash flow projection and firm valuation. Students will also learn the accounting principles, conventions and concepts underlying financial reporting with the objective of developing the ability to analyze and interpret financial statements. At the end of the course, students will be led through a structured “hackathon” process that assists them in the process of converting an idea into a viable startup launch strategy.