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Unit outline_

FINC6025: Entrepreneurial Finance

Semester 2, 2024 [Normal day] - Camperdown/Darlington, Sydney

This unit explores the considerations when planning the financial needs of new ventures and young companies. An overview of entrepreneurial finance reviews the concepts of valuation for entrepreneurial ventures and possible funding sources from the standpoint of the founder, management team and the funder. Fundamental valuation approaches considered in corporate finance are extended to model the opportunities and the capital structure relevant to a new venture. This unit examines the process of venture capital funding and the challenges of managing and funding growth. New topics are covered in relation to the growth and exit strategies employed by entrepreneurial ventures, as well as later stage financing, including mezzanine financing and buy-outs.

Unit details and rules

Academic unit Finance
Credit points 6
Prerequisites
? 
FINC5001
Corequisites
? 
None
Prohibitions
? 
None
Assumed knowledge
? 

None

Available to study abroad and exchange students

Yes

Teaching staff

Coordinator Peter Pham, peter.pham@sydney.edu.au
The census date for this unit availability is 2 September 2024
Type Description Weight Due Length
Supervised exam
? 
Final Exam (Closed Book)
MCQs and short-answer questions
40% Formal exam period 2 hours
Outcomes assessed: LO1 LO2 LO3 LO4 LO5
Participation In-class discussion
Discussion and in-class work based on prescribed tutorial questions
10% Please select a valid week from the list below Continuous over the tutorial program
Outcomes assessed: LO1 LO3 LO4 LO5
Supervised test
? 
In-semester Exam (Closed Book)
MCQ questions
20% Week 06
Due date: 07 Sep 2024 at 13:40
1 hour
Outcomes assessed: LO1 LO2 LO3 LO4 LO5
Assignment group assignment Business plan
Report and pitching competition
30% Week 11
Due date: 18 Oct 2024 at 23:59

Closing date: 03 Nov 2023
10 pages report + Pitching video
Outcomes assessed: LO1 LO2 LO3 LO4 LO5
group assignment = group assignment ?

Assessment summary

  • Final exam. Students are required to answer a set of multiple choice questions and short questions questions on the examinable topics in a supervised closed-book written examination.
  • In-semester exam. Students are to provide their solutions to multiple choice questions in a supervised closed-book written examination.
  • Business plan. Students are to form of group of 3 to 5 students and each member of the group is responsible to ensure the team uploads an assignment report, and a pitching video. The
    report consists of a business plan for a start-up company, and the pitching video is an effort to raise funding for the new business.
  • In-class discussion. Over the duration of the tutorial program, students are assessed on the quality of their contributions to the class (tutorial) discussion. The discussion will be based on
    the prescribed tutorial questions. Expectations and marking criteria will be made available at the start of the semester.
  • Detailed information for each assessment component can be found on Canvas.

Assessment criteria

The University awards common result grades, set out in the Coursework Policy 2014 (Schedule 1).

As a general guide, a high distinction indicates work of an exceptional standard, a distinction a very high standard, a credit a good standard, and a pass an acceptable standard.

Result name

Mark range

Description

High distinction

85 - 100

Awarded when you demonstrate the learning outcomes for the unit at an exceptional standard, as defined by grade descriptors or exemplars outlined by your faculty or school. 

Distinction

75 - 84

Awarded when you demonstrate the learning outcomes for the unit at a very high standard, as defined by grade descriptors or exemplars outlined by your faculty or school.

Credit

65 - 74

Awarded when you demonstrate the learning outcomes for the unit at a good standard, as defined by grade descriptors or exemplars outlined by your faculty or school.

Pass

50 - 64

Awarded when you demonstrate the learning outcomes for the unit at an acceptable standard, as defined by grade descriptors or exemplars outlined by your faculty or school. 

Fail

0 - 49

When you don’t meet the learning outcomes of the unit to a satisfactory standard.

For more information see guide to grades.

Late submission

In accordance with University policy, these penalties apply when written work is submitted after 11:59pm on the due date:

  • Deduction of 5% of the maximum mark for each calendar day after the due date.
  • After ten calendar days late, a mark of zero will be awarded.

This unit has an exception to the standard University policy or supplementary information has been provided by the unit coordinator. This information is displayed below:

10% per day late, pro-rata (applies to the business plan group assignment)

Academic integrity

The Current Student website provides information on academic integrity and the resources available to all students. The University expects students and staff to act ethically and honestly and will treat all allegations of academic integrity breaches seriously.

We use similarity detection software to detect potential instances of plagiarism or other forms of academic integrity breach. If such matches indicate evidence of plagiarism or other forms of academic integrity breaches, your teacher is required to report your work for further investigation.

Use of generative artificial intelligence (AI) and automated writing tools

You may only use generative AI and automated writing tools in assessment tasks if you are permitted to by your unit coordinator. If you do use these tools, you must acknowledge this in your work, either in a footnote or an acknowledgement section. The assessment instructions or unit outline will give guidance of the types of tools that are permitted and how the tools should be used.

Your final submitted work must be your own, original work. You must acknowledge any use of generative AI tools that have been used in the assessment, and any material that forms part of your submission must be appropriately referenced. For guidance on how to acknowledge the use of AI, please refer to the AI in Education Canvas site.

The unapproved use of these tools or unacknowledged use will be considered a breach of the Academic Integrity Policy and penalties may apply.

Studiosity is permitted unless otherwise indicated by the unit coordinator. The use of this service must be acknowledged in your submission as detailed on the Learning Hub’s Canvas page.

Outside assessment tasks, generative AI tools may be used to support your learning. The AI in Education Canvas site contains a number of productive ways that students are using AI to improve their learning.

Simple extensions

If you encounter a problem submitting your work on time, you may be able to apply for an extension of five calendar days through a simple extension.  The application process will be different depending on the type of assessment and extensions cannot be granted for some assessment types like exams.

Special consideration

If exceptional circumstances mean you can’t complete an assessment, you need consideration for a longer period of time, or if you have essential commitments which impact your performance in an assessment, you may be eligible for special consideration or special arrangements.

Special consideration applications will not be affected by a simple extension application.

Using AI responsibly

Co-created with students, AI in Education includes lots of helpful examples of how students use generative AI tools to support their learning. It explains how generative AI works, the different tools available and how to use them responsibly and productively.

Support for students

The Support for Students Policy 2023 reflects the University’s commitment to supporting students in their academic journey and making the University safe for students. It is important that you read and understand this policy so that you are familiar with the range of support services available to you and understand how to engage with them.

The University uses email as its primary source of communication with students who need support under the Support for Students Policy 2023. Make sure you check your University email regularly and respond to any communications received from the University.

Learning resources and detailed information about weekly assessment and learning activities can be accessed via Canvas. It is essential that you visit your unit of study Canvas site to ensure you are up to date with all of your tasks.

If you are having difficulties completing your studies, or are feeling unsure about your progress, we are here to help. You can access the support services offered by the University at any time:

Support and Services (including health and wellbeing services, financial support and learning support)
Course planning and administration
Meet with an Academic Adviser

WK Topic Learning activity Learning outcomes
Week 01 Introduction, the entrepreneurial environment, and the venture life cycle. Lecture and tutorial (3 hr) LO1
Week 02 Startup business model and funding environment Lecture and tutorial (3 hr) LO2
Week 03 Managing startup cash flows and funding requirements Lecture and tutorial (3 hr) LO1
Week 04 Projecting financial statements Lecture and tutorial (3 hr) LO1
Week 05 Standard financial valuation methods - applicability to startups Lecture and tutorial (3 hr) LO2 LO4
Week 06 The venture capital valuation method Lecture and tutorial (3 hr) LO1 LO3 LO4
Week 07 In-semester exam. Lecture and tutorial (3 hr) LO4
Week 08 Investor perspectives: due diligence Lecture and tutorial (3 hr) LO2 LO3
Week 09 Investor perspectives: security and contract designs Lecture and tutorial (3 hr) LO3 LO4
Week 10 Investor perspectives: harvesting and exit Lecture and tutorial (3 hr) LO3 LO4 LO5
Week 11 Economics of entrepreneurial finance - cycle of fund flows Lecture and tutorial (3 hr) LO1 LO4 LO5
Week 12 Alternative sources of finance - angels, crowdfunding, and blockchain Lecture and tutorial (3 hr) LO1 LO4 LO5
Week 13 Review and final exam preparation Lecture (3 hr) LO1 LO2 LO3 LO4 LO5

Attendance and class requirements

Lectures: In-person lecture(s) will be held every week in a 2-hour block. The lectures are intended to impart the necessary information for students to gain an adequate understanding of theories, practices and empirical facts related to entrepreneurial financing. Attendance is recommended but not compulsory.

The tutorials will focus on the practical application of what is taught in the lectures by working through examples and cases with accompanying discussion and questions. Attendance is compulsory.

In addition studio recorded versions of the weekly lecture will be provided on Canvas.

Please refer to your timetable for session dates and times.

Study commitment

Typically, there is a minimum expectation of 1.5-2 hours of student effort per week per credit point for units of study offered over a full semester. For a 6 credit point unit, this equates to roughly 120-150 hours of student effort in total.

Required readings

Entrepreneurial Finance, J.C. Leach and R.W. Melicher, 7th Edition, 2020.

All readings for this unit can be accessed through the Library eReserve links available on Canvas.

Learning outcomes are what students know, understand and are able to do on completion of a unit of study. They are aligned with the University's graduate qualities and are assessed as part of the curriculum.

At the completion of this unit, you should be able to:

  • LO1. understand, explore and analyse the business entrepreneurial environment
  • LO2. develop the business idea and prepare the business model canvas
  • LO3. understand efficient markets theory and how it fits into the venture life cycle
  • LO4. use real-life data to understand hybrids, bonds and funding structure
  • LO5. explain the nature and impact of harvesting the business venture investment.

Graduate qualities

The graduate qualities are the qualities and skills that all University of Sydney graduates must demonstrate on successful completion of an award course. As a future Sydney graduate, the set of qualities have been designed to equip you for the contemporary world.

GQ1 Depth of disciplinary expertise

Deep disciplinary expertise is the ability to integrate and rigorously apply knowledge, understanding and skills of a recognised discipline defined by scholarly activity, as well as familiarity with evolving practice of the discipline.

GQ2 Critical thinking and problem solving

Critical thinking and problem solving are the questioning of ideas, evidence and assumptions in order to propose and evaluate hypotheses or alternative arguments before formulating a conclusion or a solution to an identified problem.

GQ3 Oral and written communication

Effective communication, in both oral and written form, is the clear exchange of meaning in a manner that is appropriate to audience and context.

GQ4 Information and digital literacy

Information and digital literacy is the ability to locate, interpret, evaluate, manage, adapt, integrate, create and convey information using appropriate resources, tools and strategies.

GQ5 Inventiveness

Generating novel ideas and solutions.

GQ6 Cultural competence

Cultural Competence is the ability to actively, ethically, respectfully, and successfully engage across and between cultures. In the Australian context, this includes and celebrates Aboriginal and Torres Strait Islander cultures, knowledge systems, and a mature understanding of contemporary issues.

GQ7 Interdisciplinary effectiveness

Interdisciplinary effectiveness is the integration and synthesis of multiple viewpoints and practices, working effectively across disciplinary boundaries.

GQ8 Integrated professional, ethical, and personal identity

An integrated professional, ethical and personal identity is understanding the interaction between one’s personal and professional selves in an ethical context.

GQ9 Influence

Engaging others in a process, idea or vision.

Outcome map

Learning outcomes Graduate qualities
GQ1 GQ2 GQ3 GQ4 GQ5 GQ6 GQ7 GQ8 GQ9

This section outlines changes made to this unit following staff and student reviews.

This unit of study has been extensively developed from previous versions to provide a flexible blended learning experience. The UoS content and learning material are at the same standard and difficulty level as previous years, but are dynamically updated to be relevant to the current environment in the global marketplace.

Weekly format: a 2-hour lecture (recommended) and a 1-hour tutorial (compulsory).

More information can be found in Modules on the Canvas site for this unit of study.

Disclaimer

The University reserves the right to amend units of study or no longer offer certain units, including where there are low enrolment numbers.

To help you understand common terms that we use at the University, we offer an online glossary.