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Tech Management

UCSB

CLASS TIMETABLE

Week 1 An Introduction to Finance for New Ventures

• Finance vs. Accounting – How different, how are they similar
• Understand the range of decisions made by, and the information needs of, external and internal users of accounting information.
• Gain insights into how security markets operate and what is meant by efficiency as it relates to securities markets.
• Describe the content and purpose of the various types of information contained in a typical Annual Report and Accounts.
• Gain insights into other sources of financial information about a business enterprise.

Week 2 The Supply of Accounting Information

• Describe the form and content of the balance sheet, income statement
• Cash flow vs. Accounting income
• State the accounting equation and describe how it is related to the balance sheet, income statement, statement of retained earnings and statement of cash flows.

Week 3/4 Corporate Finance and the Time Value of Money

• Understand timing issues and how financial decision making takes place
• Understand the valuation framework, and basic assumptions of time value of money
• Capital Structure issues

Week 5 Analyzing Financial Statements

• Understand basic techniques of financial statement analysis, including horizontal and vertical analysis.
• Be able to calculate common size statements and calculate basic ratios.
• Use financial information to assess earnings quality and what is important for raising capital or valuation
• Financial statements as a strategic planning and competitive analysis tool
  

Weeks 6/7 Financing of New Ventures and Capital Requirements

• Determining the amount of capital needed for startup or growth financing and use of proceeds
• Debt and Equity funding alternatives

  1. Angel and private investors
  2. Venture capital and Private Equity Groups
  3. Strategic Alliances and Corporate Partners
  4. Letter of Credit Financing
  5. Asset-Based Financing
  6. Factoring and Accounts Receivable Financing

• Determining which source of funding is appropriate and optimal timing
• Private Placements vs. Public Placements
• Preparing for capital raising and the capital raising process
• Funding capital equipment or new projects

Week 8/9 Valuation Models of New Ventures

• Valuation of new ventures

  1. Determinants of Value
  2. Pre- and post-money valuation and how to value subsequent rounds of financing
  3. Structuring equity funding and rounds of financing: Seed Capital, Mezzanine Financing, Warrants, put options, call options.
  4. What is dilution and how to protect investors

• Valuation of revenue generating firms:

  1. Discounted Cash flow Valuation Method – Gordon Growth and Exit Multiple DCF Models
  2. Precedent Transaction Valuation Method
  3. Multi-Company Comparison Valuation Method

Week 10 Case Study/ Guest speakers