BUSI771-GS01-Baum

1UniversityofMarylandRobertH.SmithSchoolofBusinessBUSI771:NewVentureFinancingFallSemester2010–ShadyGrove-SectionGS01Instructor:Dr.J.RobertBaumClasstime:Thur.6:30–9:10PMEntrepreneurshipClassroom:ArrangedManagementandOrganizationDept.OfficeHours:Thur.11-4Office:VMH4526Fri.8-12Phone:[phone]Anytimebye-maile-mail:[e-mail]dMaterialX:ReadingPacket(XanEdu):($33),CoursePack327746S:Sherman,Andrew,L.(2005).RaisingCapital,2ndEditionAmacomBooksISBN:0-8144-08567.($30:Amazon),$9:usedAmazon).B:Blackboard:(Free).SupplementaryMaterial(Notrequired.Forstudentswithfocusedinterest):Dorf,R.C.,Byers,T.H.,&Nelson,A.(2010).TechnologyVentures:FromIdeatoEnterprise.NewYork:McGrawHill.ISBN-9780073380186($144:Amazon).TechnologyVenturesLerner,J.,Hardymon,F.,&Leamon,A.(2008).VentureCapitalandPrivateEquity,ThirdEdition,NewYork:Wiley,ISBN=978-0-97022462-5.($52new).TheoryMay,J.&Simmons,C.(2001).EveryBusinessNeedsAnAngel.NewYork:CrownPublishing,ISBN:0609607782($5+$3S/H:Amazon).AngelinvestorsTimmons,J.A.,Spinelli,S.,&Zacharakis,A.2005.HowtoRaiseCapital.NewYork,McGrawHill,ISBN:0071412883($11.53+$3S/H:Amazon).Lightoverviewfromopportunityrecognitiontoharvest.Wilmerding,A.,etal.(2006).DealTerms:TheFinerPointsofVentureCapitalDealStructures,Valuations,TermSheets,StockOptions,andGettingVCDealsDone,NewYork:Aspatore,ISBN=1587622084.($53:Amazon).Privateequity2CourseDescriptionThispracticalcourseisdesignedprimarilytoimprovethestudent’sabilitytofinanceaneworgrowingventure.Theadvantagesanddisadvantagesofthesourcesofcapitalfornewventuresarestudiedfromtheentrepreneur’sviewpoint.Coretopicsincludebootstrapping,governmentloansandgrants,commercialbanking,angels,middlemarketprivateplacements,DPOs,venturecapital,venturebanking,andsmallIPOs.Briefattentionisalsogiventofranchising,licensing,strategicalliances,jointventures,leasing,andbuyouts.Areviewoffinancialterms,financialstatements,capitalstructure,valuation,dealstructure,duediligence,andtermsheetsisprovided.LearningObjectivesAsaresultoftakingthiscourse,studentsshouldbebetterableto:1.analyzethefeasibilityoffinancingnew,transformed,andgrowingventures.2.understandtheadvantagesanddisadvantagesofthefullarrayofventurefinancingoptions.3.acquirefinancingforaneworgrowingventure.4.understandvaluationmethods,includingoptionspricingtheory.5.makeoralpresentationsandworkasateammember.InstructionalMethodsReadingsarefrom:(1)AndrewSherman'sentrepreneur-orientedventurefinancingtext,(2)realbusinessplans,(3)realprivateplacementmemoranda,(4)realtermsheets,(5)Harvardnotesandcases,and(6)instructor-providedmaterials.Othercoursecontentisofferedinlecturespluspresentationsbyfivepracticingentrepreneurs,andpracticingfinanciers.Gradesarebasedupon:(1)performanceonthe“late-term”exam,(2)aclasspresentationaboutacase,book,termsheet,orspecialtopic,(3)classparticipation,and(4)afinaltermpaperwithanoralclasspresentation.3BMGT771NEWVENTUREFINANCINGSYLLABUSDATETOPIC/PRESENTATION/GUESTASSIGNMENTandPREPARATION108/26IntroductionSyllabusandCourseOverview:PresentationsandAssignments,TermProject,andGradingScanthefundamentalcoursedocuments:Syllabus,WrittenAssignments,Readings,Presentations,etc.=B1-B7documentsonBlackboard209/02NewVentureFinancialFundamentalsGuestSpeaker:MattFleischer,FounderandCEO,HookandLadderBeerNewandGrowingVenturesStagesandSourcesofVentureFinancingOtherFormsofNewVentureFinancing:Licensing,Franchising,JointVentures,&StrategicAlliancesOralReview:AdrianandMuriel,TermsVersion9.6Sherman:Prefacexi-xvii,Ch1&13Review:Stages,Sources,&RiskSummaryHScan:Terms-Version9.6B8Scan:AdrianandMurielB9Scan:BusinessPlanWritingGuide4.2B10,FinancialStatementsEmergencyB11,(AreyouOKwiththese?)Review:(again)&Terms(again)The771SourcesEvaluationFrameworkRelevantDocuments:BusinessPlans,ExecutiveSummaries,FinancialPlans,FinancialStatements,andInvestmentProposals(w/FinancialStructure)Presentation:TheBestSetofVentureFinancials(Reveille-K2M,FabFiveInc,andSenseHer)FoolsandtheGovernmentBootstrapping,FounderLoans,4F,GovernmentGrantsandLoans:SBICs,SBIRs,SBA,IDA,etc.Presentation:NewMarketsGrowthFundSubmit:OnePageFromEachTeam:Your“TermProject”IdeaandTeamSherman:Ch.3,4(except70-81),5,7,&8(except137-148)Scan:771SourcesEvaluationFrameworkB12Scan:TheFinancialStatementsof:Reveille-K2MX,FabFiveInc.B13,andSenseHerB14Scan::TrevorGarner,VPCorporateBanking,M&TBankBanksCommercialBanks,CommercialFinanceCompanies,VentureLeasing,&FactoringAngels:FormalandInformal;DebtandEquityAngelsandBandsofAngels:Sherman–“HeavenonEarth”SuppliersandCustomers(“PartnerAngels”)Presentation:BookReviewof“EveryBusinessNeedsanAngel”TheNorthStarGamesDebtOfferingSubmit:Aone-pageexplanationofyourguessesaboutthebestsourcesoffunds:Reveille-K2MFabFiveIncSenseHerThreeRiggs&Allencompanies4sale”listedin“Assignments.