LEARNING OUTCOMES
By the end of the course students should have formed a solid understanding of entrepreneurial firms’ financing and understand the incentives of both the entrepreneur and the financiers. Students will learn how initial business opportunities are being evaluated and how both quantitative (valuation, term sheet clauses) and qualitative deal elements are being negotiated and structured through a practical hands-on approach. Students will further become familiar with the common staged financing processes and the investors that partake in these financing rounds as well as the alternative debt financing available. Lastly, students will learn how to plan for the eventual exit’s timing and type.
Credits: 6
Schedule: 26.02.2025 - 11.04.2025
Teacher in charge (valid for whole curriculum period):
Teacher in charge (applies in this implementation): Matti Keloharju, Penglong Li
Contact information for the course (applies in this implementation):
CEFR level (valid for whole curriculum period):
Language of instruction and studies (applies in this implementation):
Teaching language: English. Languages of study attainment: English
CONTENT, ASSESSMENT AND WORKLOAD
Content
valid for whole curriculum period:
This course provides an overview of entrepreneurial finance. The course is aimed for students interested in founding their own start-up company, those looking to start or work for a venture capital or a related organization, and students who expect to interact with either entrepreneurs or early stage investors through their roles as management consultants, bankers, or others. Because of this, attention is given both to the perspective of an entrepreneur seeking financing and to the perspective of capital suppliers.
The course will cover a wide range of issues including, but not limited to, pitching the entrepreneur’s financial plan, evaluation of entrepreneurial opportunities and the venture capital valuation method, term sheets and deal structuring, financing processes, investors’ roles in corporate governance, exit routes, venture capital funds and other early stage investors, as well as the ecosystem surrounding entrepreneurial firms. Entrepreneurial finance is a combination of art and science, and an optimal quantitative solution may not always be found: market participants are required to make qualitative judgements under a high degree of information asymmetry and based on incomplete resources.
Assessment Methods and Criteria
valid for whole curriculum period:
Negotiation exercise 30%
Exercise sets 30%
Final exam 40%
Workload
valid for whole curriculum period:
Lectures, negotiation exercise (group work), exercise sets (group work), final exam
DETAILS
Study Material
valid for whole curriculum period:
(1) Da Rin & Hellmann (2020). Fundamentals of Entrepreneurial Finance. Oxford University Press. ISBN:9780199744756
(2) Other materials provided through MyCourses
Substitutes for Courses
valid for whole curriculum period:
Prerequisites
valid for whole curriculum period:
FURTHER INFORMATION
Further Information
valid for whole curriculum period:
Teaching Language: English
Teaching Period: 2024-2025 Spring IV
2025-2026 No teachingRegistration:
A maximum of 64 students can be accepted to the course. The course uses a waitlist and a pre-course assignment that is due on the day preceding the day of the first lecture. To confirm their attendance on the course, the admitted students are required to pass this assignment.
Students at Aalto Finance M.Sc. programme (i.e. who have graduated as B.Sc.) will be prioritized when admitting students to the course. Students re-taking the course (grade already registered) will not be prioritized and can participate only if there are places remaining. Remaining seats are prioritized as follows
1. Finance M.Sc. exchange students from other universities
2. Aalto Finance B.Sc. students with 150 credits and a finished B.Sc. thesis completed (registered in transcript of records)
3. All other M.Sc. students at the School of Business
Please follow carefully the registration deadlines of the courses and exams! Missing registration deadline automatically foregoes a prioritized seat for Finance M.Sc. students and puts prospective students at the bottom of the prioritization list.