Venture capital
Summary
The course applies finance concepts to the world of venture capital (VC). Students are introduced to all institutional aspects of the VC industry. Students analyze the relations between investors, general partners, and entrepreneurs, including limited partnership agreements as well as term sheets
Content
1. Introduction to venture capital
2. Methods for valuation of high-growth companies
3. Venture capital investing and option pricing analysis
4. Impact investments
5. Buyouts
Keywords
Venture capital - Private equity - Finance of innovation - Valuation - Option pricing theory
Learning Prerequisites
Required courses
Introduction to finance
Recommended courses
Investments
Learning Outcomes
By the end of the course, the student must be able to:
- Describe all the institutional aspects of the venture capital industry.
- Give an example of the asymmetric information problem that drives contracting in the venture capital industry
- Recall discounted cash-flow and comparables valuation techniques
- Apply finance tools and concepts to the world of venture capital and financing of projects in high-growth industries.
- Use option pricing techniques to price the preferred securities issued to venture capitalists
- Describe how leveraged buyout transactions work
Transversal skills
- Plan and carry out activities in a way which makes optimal use of available time and other resources.
- Give feedback (critique) in an appropriate fashion.
- Take feedback (critique) and respond in an appropriate manner.
- Summarize an article or a technical report.
Teaching methods
Lectures, homework, case studies, expert talks, exercises
Assessment methods
30% Homework and case studies
25% Midterm exam
45% Final exam
Homework is open book. Midterm and final exam are closed-book.
Supervision
Office hours | Yes |
Forum | No |
Resources
Virtual desktop infrastructure (VDI)
No
Bibliography
Venture Capital and the Finance of Innovation by Andrew Metrick and Ayako Yasuda, John Wiley and Sons.
Ressources en bibliothèque
Moodle Link
Dans les plans d'études
- Semestre: Automne
- Forme de l'examen: Ecrit (session d'hiver)
- Matière examinée: Venture capital
- Cours: 3 Heure(s) hebdo x 14 semaines
- Type: optionnel
- Semestre: Automne
- Forme de l'examen: Ecrit (session d'hiver)
- Matière examinée: Venture capital
- Cours: 3 Heure(s) hebdo x 14 semaines
- Type: optionnel
- Semestre: Automne
- Forme de l'examen: Ecrit (session d'hiver)
- Matière examinée: Venture capital
- Cours: 3 Heure(s) hebdo x 14 semaines
- Type: optionnel
- Semestre: Automne
- Forme de l'examen: Ecrit (session d'hiver)
- Matière examinée: Venture capital
- Cours: 3 Heure(s) hebdo x 14 semaines
- Type: optionnel
- Semestre: Automne
- Forme de l'examen: Ecrit (session d'hiver)
- Matière examinée: Venture capital
- Cours: 3 Heure(s) hebdo x 14 semaines
- Type: optionnel
- Semestre: Automne
- Forme de l'examen: Ecrit (session d'hiver)
- Matière examinée: Venture capital
- Cours: 3 Heure(s) hebdo x 14 semaines
- Type: optionnel