Course Detail

Entrepreneurial Finance and Private Equity (34101)

Course Description by Faculty

  • Kaplan, Steven
  • Content
    For autumn quarter, the full-time sections will be offered in dual mode but it is possible that the faculty member will not be in the classroom. The weekend section will be held remotely.

    This course uses the case method to study entrepreneurial and private equity finance. The course is motivated by increases in both the supply of and demand for private equity. On the supply side, the amount of private equity under management - by partnerships investing in venture capital, growth equity, leveraged buyouts, distressed companies, etc. - has increased substantially in the last two decades. On the demand side, a large number of MBAs and others are interested in starting and managing their own businesses. Private equity also has grown substantially outside of the U.S.

    The primary objective of the course is to provide an understanding of the concepts and institutions involved in entrepreneurial finance and private equity markets. To do this, the course has been designed to be broad and comprehensive. We will explore private equity from a number of perspectives, beginning with the entrepreneur/issuer, moving to private equity - venture capital and leveraged buyout - partnerships, and finishing with investors in private equity partnerships. For each class meeting, study questions will be assigned concerning a case study. We will discuss these questions and the material in the case for most of the class period. Before each case discussion, each student will be required to submit a memorandum (up to two pages) of analysis and recommendations. Group work is encouraged, but not required on these short memoranda. Memoranda with up to three names on them are acceptable. We will use journal articles and some lectures to supplement and enhance the case discussions. All required cases and supplementary readings will be posted online in Canvas.

    Preassignment: Students are responsible for a memorandum for each case we discuss in the first class. The first class assignment is detailed in Canvas. All students (including those who are not registered, but are trying to add the course) must attend and prepare the first week. Students who do not attend the first week cannot take the course.
    Format
    • Lectures

    • Discussion

    • Case Studies

  • Prerequisites
    At least one of Business 35200, 35201, 35902 or 30130: strict (or with permission of instructor). Instructor permission required for auditors.
    Restrictions
    • No non-Booth Students

  • Materials
    Resources
    • Canvas Site Available

  • Grades
    Based on class participation (40%), the short memoranda (10%), and a final exam (50%). Cannot be taken pass/fail. No non-Booth students.
    Grades
    • Graded attendance/participation

    Assessment & Testing
    • Final exam (take home)

    Restrictions
    • No pass/fail grades

  • Syllabus
  • Autumn 2020Section: 34101-01MW 10:10AM-11:30AMLocation: TBDRemote-Only
  • Autumn 2020Section: 34101-02MW 1:30PM-2:50PMLocation: TBDRemote-Only
  • Autumn 2020Section: 34101-85S 9:00AM-12:00PMLocation: TBDRemote-Only
Description and/or course criteria last updated: August 20 2020 
  • Meadow, Scott
  • Content
    Using the case method and an array of guest lecturers to supplement the casework, this course is meant to aid those students who are considering being part of an entrepreneurial enterprise or evaluating such enterprises from the seat of the public or private financier.

    The chief objective of the course is to provide an understanding of the criteria for a successful entrepreneurial endeavor and the methods of analysis to make the proper judgment. The casework will consider ventures representing broad sectors of the economy, including telecommunications, healthcare and consumer services. These sectors will be used to examine entrepreneurial activity and analysis. The impact of the Internet / social media as an enhancement to these sectors will be interwoven throughout.
    The class analyzes the role of various functional areas e.g., finance, marketing, and strategy, toward achieving success in new ventures.

    Daily discussions will cover issues of private equity finance from seed stage through growth equity to recapitalization. Deal structure, incentive design, risk-based valuation, financial management in private, rapidly growing enterprises will be included. Exit strategies will be covered, including initial public offerings, mergers and strategic partnerships. Restructuring poorly performing projects will also be a component.
    Attention is also given to analyzing the suppliers of capital, individual investors, venture capitalists, commercial banks, asset-based lenders and investment banks.

    Before each class, students will be required to submit an executive summary that includes analysis and recommendations. Group work is encouraged, but not required on these executive summaries. Memoranda with up to five team member names on them are acceptable. We will discuss the study questions and the material in each class period.

    Preassignment: Students are responsible for a memorandum for each case we discuss in the first class. The first class assignment is detailed on the Canvas site.

    Also, please note that attendance for all nine weeks of the course is very important for your success and for other students' success in this team-based course. If you are hoping to register for this course but have not yet secured a seat, you must attend class sessions as it is prohibitive to catch up. If you have not attended and register after the start of the quarter, you will be asked to drop the course.
    Format
    • Lectures

    • Discussion

    • Case Studies

    • Group Projects

  • Prerequisites
    None. Business 33001 and 35200 recommended. Business 30130 would be helpful.
  • Materials
    This course will have a Canvas site.
    Resources
    • Canvas Site Available

  • Grades
    Based on class participation (10%), the short memorandum (15%), midterm (30%) and final project (45%). The final project is a take home case analysis. Cannot be taken pass/fail. Auditors need to receive approval from the professor.
    Grades
    • Graded homework assignments

    • Graded attendance/participation

    Assessment & Testing
    • Midterm

    • Final Project

    Restrictions
    • No auditors

    • No pass/fail grades

  • Syllabus
  • Winter 2021Section: 34101-01F 8:30AM-11:30AMLocation: TBDRemote-Only
  • Winter 2021Section: 34101-85S 9:00AM-12:00PMLocation: TBDRemote-Only
  • Summer 2021Section: 34101-81TH 6:00PM-9:00PMLocation: TBDRemote-Only
Description and/or course criteria last updated: July 15 2020 
  • Zwick, Eric
  • Content
    This course uses the case method to study entrepreneurial finance and private equity, including angel and venture capital, growth equity, and buyouts. The course is motivated by growth in private capital markets and in the perceived importance of high growth entrepreneurial projects.

    The primary goal of the course is to familiarize students with the financial and organizational challenges typical of start-up and growing private companies and to provide an understanding of the concepts and institutions involved in private capital markets. To do this, the course is broad and comprehensive. The course will appeal to students who want to start and manage their own business, who want to work in a start-up, or who want to work in a venture capital or private equity organization.

    The course primarily considers the financial economics of entrepreneurial settings, but discussions will also integrate issues from micro and macroeconomics, strategy, organization, and control. We explore the questions raised from many perspectives, often contrasting the positions of entrepreneurs, issuers, and targets with those of managing and limited partners. Issues covered include deal structure, incentive design, valuation of high risk projects, financial management in rapidly growing firms, initial public offerings, mergers and acquisitions, and capital restructuring. Among capital suppliers we consider informal risk capital, commercial banks, angel investors, venture capital firms, and investment banks.

    Format
    • Lectures

    • Discussion

    • Case Studies

    • Group Projects

  • Prerequisites
    Business 33001 (or 33002), 35000 (or 35901), and 35200: strict. Business 30130 would be helpful.
  • Materials
    We will use journal articles, some lectures, and visiting speakers to supplement and enhance the case discussions. All required cases and supplementary readings will be in the course Canvas site.
    Resources
    • Canvas Site Available

  • Grades
    For each class meeting, study questions will be assigned concerning one or two case studies. We will discuss these questions and the material in the cases for most of the class period. Each student will be required to submit a 1-2 page memorandum of analysis and recommendations before each class. Group work is encouraged, but not required, on these short memoranda. Memoranda with up to three names on them are acceptable. No pass/fail grades.
    Grades
    • Graded homework assignments

    • Graded attendance/participation

    Assessment & Testing
    • Final exam (take home)

    Restrictions
    • No pass/fail grades

  • Syllabus
  • Spring 2021Section: 34101-01W 1:30PM-4:30PMLocation: TBDRemote-Only
  • Spring 2021Section: 34101-81W 6:00PM-9:00PMLocation: TBDRemote-Only
Description and/or course criteria last updated: July 1 2016