ENTREP 2003 - New Venture Finance
North Terrace Campus - Semester 2 - 2017
-
General Course Information
Course Details
Course Code ENTREP 2003 Course New Venture Finance Coordinating Unit Entrepreneurship, Commercialisation & Innov Centre Term Semester 2 Level Undergraduate Location/s North Terrace Campus Units 3 Contact Intensive: 36 to 40 hours Available for Study Abroad and Exchange Y Assessment Individual report, group assignment, exam Course Staff
Course Coordinator: Dr Gary Hancock
Teaching staff
Semester 2
Name: Remco Marcelis
Short Bio:
Remco is a virtual Chief Financial Officer (vCFO) experienced in venture capital. Passionate about growing successful sustainable businesses, Remco is interested in startups that disrupt the status quo, digital health and bitcoin’s potential in facilitating international payments.
Remco is a seasoned CFO/COO who has worked with entrepreneurial technology/cleantech businesses for the last 10 years, preceded by 4 years in venture capital (raising and investing nearly $40 million) and 10 years working with multinational management consulting/IT services companies. He has a strong background in inspiring and managing teams, coupled with innovative use of technology to drive improvements through all areas of business.His career combines personal experience in his own start-ups, managing meteoric growth in a successful media company, a mobile App company and an early stage climate change company. His venture capital experience included 20 early stage investments. His career was grounded with management consulting and IT services experience with Accenture, PricewaterhouseCoopers and EDS. This real-life experience has been rounded out with an advanced MBA degree from the 成人大片, graduate of the Institute of Company Directors, Foundations in Venture Capital and courses through the Financial Services Institute of Australasia (FINSIA).
Remco provides his virtual CFO services under the Virtuosity umbrella. www.vcfo.com.au
Email: remco@marcelis.com.au
Phone: 0400 474 228
LinkedIn:
Twitter: @MarcelisRemcoCourse Timetable
The full timetable of all activities for this course can be accessed from .
Opening intensive:
Wednesday 2nd, Thursday 3rd and Friday 4th August 2017
9am to 6pm
Marjoribanks, 126, SANTOS Lecture Theatre
Closing intensive:
Wednesday 27th, Thursday 28th and Friday 29th September 2017
9am to 6pm
Napier, 208, Lecture Theatre -
Learning Outcomes
Course Learning Outcomes
On successful completion of this course, students will be able to:
1 Identify the key financial considerations to be considered when launching a new venture 2 List the metrics used when building and running a new venture 3 Develop a robust financial model that reflects a new venture’s growth plans 4 Identify the possible sources of finance to support a new venture 5 Explain the practical financial and operational aspects of establishing and running a business University Graduate Attributes
This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:
University Graduate Attribute Course Learning Outcome(s) Deep discipline knowledge
- informed and infused by cutting edge research, scaffolded throughout their program of studies
- acquired from personal interaction with research active educators, from year 1
- accredited or validated against national or international standards (for relevant programs)
5 Critical thinking and problem solving
- steeped in research methods and rigor
- based on empirical evidence and the scientific approach to knowledge development
- demonstrated through appropriate and relevant assessment
2,3 Teamwork and communication skills
- developed from, with, and via the SGDE
- honed through assessment and practice throughout the program of studies
- encouraged and valued in all aspects of learning
2 Career and leadership readiness
- technology savvy
- professional and, where relevant, fully accredited
- forward thinking and well informed
- tested and validated by work based experiences
1,3,5 Self-awareness and emotional intelligence
- a capacity for self-reflection and a willingness to engage in self-appraisal
- open to objective and constructive feedback from supervisors and peers
- able to negotiate difficult social situations, defuse conflict and engage positively in purposeful debate
4 -
Learning Resources
Required Resources
No textbook required
The following readings will be made available through MyUni:
BRW Magazine, 11 reasons why now is the right time to become an entrepreneur
Gross, Bill, The Start-Up Factory
Bhide, Amad The Questions Every Entrepreneur Must Answer in The Entrepreneurial Venture pg 65
Blank, Steve Why the Lean Startup Changes Everything Harvard Business ReviewRecommended Resources
There is a wide range of material on the lean startup movement and venture capital. The following provides some additional reading guidance if you are interested in reading further on the topic.
A key resource for more information on the Lean Start-up methodology and business model generation is the website from the “founder” of the Lean Startup movement, Steve Blank.
Note in particular, the recommended books listed here:
A couple of the key foundational texts are:
Blank, Steve. The Start-Up Owners Manual. K & S Ranch; (March 1, 2012)
Osterwalder, Alexander. Business Model Generation Wiley; (July 13, 2010)
Reis, Eric. The Lean Startup Crown Business (September 13, 2011)
Mayura, Ash, Running Lean: Iterate from Plan A to a Plan That Works O'Reilly Media; 2 edition (March 6, 2012)
Feld, Brad and Mendelson, Jason. Venture Deals: Be Smarter than your Lawyer and Venture Capitalist Wiley; 1 edition (August 2, 2011)
Library Resources
The 成人大片’s Barr Smith Library provides a range of learning resources including texts, journals, periodicals, magazines, and access to online databases and information services. It also offers a virtual library which is accessible via the University’s website. .Online Learning
is the 成人大片's online learning environment. It is used to support traditional face-to-face lectures, tutorials and workshops at the University. MyUni provides access to various features including announcements, course materials, discussion boards and assessments for each online course of study. -
Learning & Teaching Activities
Learning & Teaching Modes
This course is offered in blended learning mode with the face-to-face component offered as intensives.Workload
The information below is provided as a guide to assist students in engaging appropriately with the course requirements.
As a guide, a 3 unit course comprises a total of 156 hours work (this includes face-to-face contact, any online components, and self directed study).Learning Activities Summary
This is a draft schedule and session dates are a guide only. The timetable may be changed during the course delivery if necessary.
Intensive day Content Activities Opening Intensive -Day 1 to Day 3 Day 1 1. Introduction (LEARNING)
Readings:1.1. BRW Magazine, 11 reasons why now is the right time tobecome an entrepreneur1.2. Bill Gross, The Start-Up Factory1.3. Amad Bhide, The Questions Every Entrepreneur MustAnswerActivity 1.1.1 (T): Course expectations (TEAM)
Activity 1.1.2: Your motivations, Your Idea (INDIVIDUAL)2. Lean Startup (LEARNING)
Readings:2.1.1. Steve Blank, Why the Lean Startup changeseverythingActivity 1.2.1: Lean Startup Foundations (INDIVIDUAL) 3. Business Model Canvas (LEARNING)
Readings:None – class slidesActivity 1.3.1: Business Model Canvas Foundations(INDIVIDUAL) 4. Business Model Canvas (ACTIVITY)
Readings:None – class slidesActivity 1.4.1: Business Model Canvas Activity (TEAM) Day 2 1. Revenue Model (LEARNING)
Readings:None – class slidesActivity 2.1.1: Revenue Model Foundations(INDIVIDUAL) 2. Revenue Model (ACTIVITY)
Readings:None – class slidesActivity 2.2.1: Revenue Model Activity (TEAM) 3. Resources & Costs (LEARNING)
Readings:None – class slidesActivity 2.3.1: Resources & Costs Foundations(INDIVIDUAL) 4. Metrics (LEARNING)
Readings:None – class slidesActivity 2.4.1: Metric Foundations (INDIVIDUAL) Day 3 1. Financial Statement foundations (LEARNING)
Readings:None – class slidesActivity 3.1.1: Financial Statement foundations(INDIVIDUAL)Activity 3.1.2: Financial Statement actvity (TEAM) 2. Revenue Forecasting (LEARNING)
Readings:None – class slidesActivity 3.2.1: Revenue forecating foundations(INDIVIDUAL)Activity 3.2.2: revenue forecasting examples (TEAM) 3. Expense Forecasting (LEARNING)
Readings:None – class slidesActivity 3.3.1: Expense Forecasting foundations(INDIVIDUAL)Activity 3.3.2: Break even actvity (INDIVIDUAL) 4. Introduction to the Financial Model (LEARNING)
Readings:None – class slidesNone – Questions will be taken regarding the financialmodel Closing intensive - Day 4 to Day 6 Day 4 1. Sources of Funding Overview
2. Loan Funding
3. Accelerators
4. CrowdfundingDay 5 1. Angel Investing
2. Venture Capital 101
3. VC in Australia
4. Pitch PracticeDay 6 1. Growing and Managing Your Business
2. Exiting Your BusinessSpecific Course Requirements
For each of the activities list below, please refer to the accompanying ActivityWorksheets.
DAY 1
1.1 Day 1, Session 1: Introductions to each other and the course (LEARNING)
Learning objectives
You will be allocated into a team for group work, and introduced to the lecturer and eachother students. We will look at your expectations for the course and provide an overviewof the whole course. We will explore motivations for starting a New Venture and gain anunderstanding of any particular entrepreneurial idea people are (aiming to be) workingon.
Activity 1.1.1: Course expectations (TEAM)
Discuss your hopes for course, what you want to get out of it. Write a list of points, andthen compare it with other teams members hopes and expectations. The lecturer willthen comment on these objectives and lead into discussion on course outline.
Activity 1.1.2: Your motivations, Your Idea (INDIVIDUAL)
Reflect on your own motivations for starting a new venture, refine and be ready topresent any ideas you are working on.
1.2 Day 1, Session 2: Introduction to the Lean Startup method (LEARNING)
Learning objectives
We will provide an overview of the lean startup methodology as a backdrop tounderstanding the process that New Ventures go through that need to be supportedfinancially.
Activity 1.2.1: Lean Startup Foundations (INDIVIDUAL)
Review your understanding of the underlying principles of the lean startup methodology.
1.3 Day 1, Session 3: Introduction to the Business Model Canvas (LEARNING)
Learning objectives
We will provide an overview of the business model canvas. The business model canvasis an easy to use inter-connected graphical representation of the key building blocks thatneed to be in place for a New Venture. We will walk through the process of completing acanvas thereby providing insight into the thought processes that go into designing abusiness’ operating model.
Activity 1.3.1: Business Model Canvas Foundations (INDIVIDUAL)
Review your understanding of the underlying principles of the lean canvas.1.4 Day 1, Session 4: Business Model Canvas Activity (ACTIVITY)
Learning objectives
This session aims to have you walk through exactly the kind of planning session(s) thata New Venture needs to go though when figuring out the different aspects of itsoperating and go-to-market model. The class will split into teams to get hands-on with anominated example busineses to come up with a preliminary business model canvas.
Activity 1.4.1: Business Model Canvas Activity (TEAM)
Each team will produce a business model canvas for its assigned business and be prepared to present it to the class. (Refer Activity Worksheet for a background on eachbusiness).
DAY 2
2.1 Day 2, Session 1: Revenue Model (LEARNING)
Learning objectives
At the core of every business is its ability to generate revenue. We will provide anoverview of a graphical method of describing a business’ revenue model. We will walkthrough this to provide insight into the thought processes that go into designing abusiness’ revenue model.
Activity 2.1.1: Revenue Model Foundations (INDIVIDUAL)
Review your understanding of the key elements of revenue models.
2.2 Day 2, Session 2: Revenue Model Activity (ACTIVITY)
Learning objectives
In this session the class will split back into teams to get hands-on with a nominatedexample busineses to come up with a preliminary revenue model.
Activity 2.2.1: Business Model Canvas Activity (TEAM)
Each team will produce a graphical description for its assigned business and beprepared to present it to the class. (Refer Activity Worksheet for a background on eachbusiness).
2.3 Day 2, Session 3: Resources & Costs (LEARNING)
Learning objectives
Fundamental to running a sustainable business is an understanding of the underlyingcosts. This session will review the key resources needed for a New Venture, and thecosts that can be expected.
Activity 2.3.1: Resources & Costs Foundations (INDIVIDUAL)
Review your understanding of the underlying resource and cost elements within abusiness.
2.3 Day 2, Session 4: Metrics (LEARNING)
Learning objectives
What gets measured, gets done as the saying goes. This sesion will look at the keymetrics that new venture should use to monitor their business and drive activity tosupport early growth.
Activity 2.4.1: Metric Foundations (INDIVIDUAL)
Review your understanding of the key types of metrics within a business.
DAY 3
3.1 Day 3, Session 1: Financial Statement foundations (LEARNING)
Learning objectives
A business owner needs to be able to understand and explain the key financial aspectsof a business. This session will introduce you to the accounting equation, and the keyfinancial statements – the Profit & Loss statement, and the Balance Sheet used topresent the performance of a business and its position.
Activity 3.1.1: Financial Statement foundations (INDIVIDUAL)
Review your understanding of the underlying key aspects of the function that financialstatements provide within a new venture.
Activity 3.1.2: Financial Statement activity (TEAM)
Using 2 public company examples, reproduce the accounting equation, and calculate theEBIT.
3.2 Day 3, Session 2: Revenue Forecasting (LEARNING)
Learning objectives
Beyond business operting model, and the overall revenue model, in this session, we willdrill down further into the specific elements required to build a believable revenueforecast.
Activity 3.2.1: Revenue Forecasting foundations (INDIVIDUAL)
Review your understanding of the underlying key aspects that lead to creating abelievable revenue forecast.
Activity 3.2.2: Revenue Forecasting examples (TEAM)
Working together, undertake a number of example calculations to address variousaspects of revenue forecasting.
3.3 Day 3, Session 3: Expense Forecasting (LEARNING)
Learning objectives
This session introduces the different types of expenses, and how those activities canvary depending on the business type and the level of business activity.
Activity 3.3.1: Expense Forecasting foundations (INDIVIDUAL)
Review your understanding of the underlying key aspects of producing an expenseforecast.
Activity 3.3.2: Break even activity (TEAM)
Working together, undertake a number of example calculations to understandbreakeven.
3.4 Day 3, Session 4: The Financial Model (LEARNING)
Learning objectives
This session introduces all aspects of the financial model to be used for yourAssignment One.
Activity 3.4.1: The Financial Model questions (INDIVIDUAL)
Review your understanding of the underlying key aspects of producing an expenseforecast.
DAY 4
4.1 Day 4, Session 1: Stages of Growth and Sources of Finance (LEARNING)
4.2 Day 4, Session 2: Bank Finance, Grants (Guest Lecturers: ANZ, CommercialisationAustralia)
4.3 Day 4, Session 3: Crowdfunding (Guest Lecture:)
4.4 Day 4, Session 4: Introduction to Angel Investing and Venture Capital (LEARNING)
DAY 5
5.1 Day 5, Session 1: Term Sheet Basics (LEARNING)
5.1 Day 5, Session 2: Valuation and Negotiation (LEARNING)
5.1 Day 5, Session 3: The Art of the Pitch (LEARNING)
5.1 Day 5, Session 4: Develop and Present your Pitch (ACTIVITY)
DAY 6
6.1 Day 6, Session 1: Practical aspects of starting a new venture (LEARNING)
6.1 Day 6, Session 2: Financial Management practices (LEARNING)
6.1 Day 6, Session 3: Planning to exit your business (LEARNING)
6.1 Day 6, Session 1: Practical aspects of starting a new venture (LEARNING)
-
Assessment
The University's policy on Assessment for Coursework Programs is based on the following four principles:
- Assessment must encourage and reinforce learning.
- Assessment must enable robust and fair judgements about student performance.
- Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
- Assessment must maintain academic standards.
Assessment Summary
An overview of the course assessment appears in the following Table. Details appear in the following section:
# Assessment Length Weighting Due Date Learning Outcomes 1 Business Model development (INDIVIDUAL) 1500 words 20% see MyUni 1, 2 2 Development of a Financial Model (GROUP) N/A 30% see MyUni 3 3 Exam take home exam 30% see MyUni 1 - 5 4 Individual Participation and Group Contribution Course duration 20% ongoing 1 - 5 Total 100% Assessment Related Requirements
Students should attend all classes in order to pass the course. There is considerable experiential learning in workshops during the intensive classes that build your knowledge and thus enable you to be successful in this course.
Course results are subject to moderation by the ECIC Board of ExaminersAssessment Detail
Assessment 1: Business Model development (INDIVIDUAL)
Weighting: 20%
Task:Pick a business idea of your own. Prepare an Executive Summary of the idea along witha Business Model Canvas.
Length and Presentation:
This assignment will assess your understanding of the topics presented, discussed and/or applied over days 1 and 2 of the course.
Criteria by which your assessment will be marked:
Will be provided by the lecturer in class.
Assessment 2: Development of a Financial Model (GROUP)
Weighting: 30%
Task:
From the case you have been allocated as a team, build a financial model that best potrays a likely financial projection for the new venture. Particular attention will be paid to the robustness and validity of the assumptions that underpin your projections. Each member of the group will receive the mark that is awarded to the assessment. Therefore, it is important that a plan is developed for the tasks of researching and writing of the report.
Length and Presentation:
This assignment will assess your understanding of the topics presented, discussed and/orapplied over day 3 of the course.
Criteria by which your assessment will be marked:
Will be provided by the lecturer in class.
Assessment 3: Take Home Exam (INDIVIDUAL)
Weighting: 30%
Task:
The take-home exam will be provided in the last lecture, and will contain questions derived from the lectures and readings. Further details will be provided during the last lecture.
Length and Presentation:
This assignment will assess your understanding of the topics presented, discussed and/orapplied over days 4-6 of the course.
Criteria by which your assessment will be marked:
Will be provided by the lecturer in class.
Assessment 4: Individual Participation and Group Contribution
Weighting: 20%
Task:
To fully particpate in all individual and group tasks and activities throughout the duration ofthe course. Participation will be evaluated based on students’ preparedness, interaction, and in-class work (whole class and group work).
Scope:
This assessment will assess understanding of the course content presented and discussed throughout days 1 to 6 of the course.
Criteria by which your assessment will be marked:
Will be provided by the lecturer in class.Submission
All text based assignments must be submitted via MyUni.
Please refer to step by step instructions:
There are a few points to note about the submission of assignments:
- Assignment Submission: Assignments should not be emailed to the instructor; they must be lodged via the MyUni Course site (unless specified to do both). Note that assignments may be processed via TURNITIN, which is an online plagiarism prevention tool.
- Cover Sheet: Please submit, separate to your assignment, the completed 成人大片 Assessment Cover Sheet providing details of yourself and your team members (if applicable), your assignment, the course, date submitted, etc. as well as the declaration signed by you that this is your (your team’s) work. Note that the declaration on any electronically submitted assignment will be deemed to have the same authority as a signed declaration.
- Backup Copy of Assignments: You are advised to keep a copy of your assignments in case the submitted copy goes missing. Please ensure that all assignment pages are numbered. If your assignment contains confidential information, you should discuss any concerns with the Course Lecturer prior to submission.
- Extensions of Time: Any request for an extension of time for the submission of an assignment should be made well before the due date of the assignment to the Course Lecturer. Normally, extensions will only be granted for a maximum of two weeks from the original assignment submission date. Extensions will only be granted in cases of genuine extenuating circumstances and proof, such as a doctor’s certificate, may be required.
- Failure to submit: Failure to submit an assignment on time or by the agreed extension deadline may result in penalties and may incur a fail grade. Note that a late penalty of 5% of the total available marks for that assessment item will be incurred each day an assignment is handed in late (Unless otherwise stated in 'Assessment Related Requirements' or 'Assessment Detail' above). Assignments handed in after 14 days from the due submission date will fail even if a 100% mark is granted for the work.
Resubmission & Remarking
Resubmission of an assignment for remarking after reworking it to obtain a better mark will not normally be accepted. Approval for resubmission will only be granted on medical or compassionate grounds.Course Grading
Grades for your performance in this course will be awarded in accordance with the following scheme:
M10 (Coursework Mark Scheme) Grade Mark Description FNS Fail No Submission F 1-49 Fail P 50-64 Pass C 65-74 Credit D 75-84 Distinction HD 85-100 High Distinction CN Continuing NFE No Formal Examination RP Result Pending Further details of the grades/results can be obtained from Examinations.
Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.
Final results for this course will be made available through .
-
Student Feedback
The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.
SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.
-
Student Support
- Academic Integrity for Students
- Academic Support with Maths
- Academic Support with writing and study skills
- Careers Services
- Library Services for Students
- LinkedIn Learning
- Student Life Counselling Support - Personal counselling for issues affecting study
- Students with a Disability - Alternative academic arrangements
-
Policies & Guidelines
This section contains links to relevant assessment-related policies and guidelines - all university policies.
- Academic Credit Arrangements Policy
- Academic Integrity Policy
- Academic Progress by Coursework Students Policy
- Assessment for Coursework Programs Policy
- Copyright Compliance Policy
- Coursework Academic Programs Policy
- Intellectual Property Policy
- IT Acceptable Use and Security Policy
- Modified Arrangements for Coursework Assessment Policy
- Reasonable Adjustments to Learning, Teaching & Assessment for Students with a Disability Policy
- Student Experience of Learning and Teaching Policy
- Student Grievance Resolution Process
-
Fraud Awareness
Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student鈥檚 disciplinary procedures.
The 成人大片 is committed to regular reviews of the courses and programs it offers to students. The 成人大片 therefore reserves the right to discontinue or vary programs and courses without notice. Please read the important information contained in the disclaimer.