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Unit outline_

SMBA6113: Financing Innovation

Intensive June, 2022 [Block mode] - Castlereagh St, Sydney

Entrepreneurship and Innovation are fundamental to our increasingly global economy. Every single large company in the world, started with one person and one valued idea. New businesses are created every day. Not all of them succeed in raising venture capital to fund their launch or, indeed, their journey and growth. New ventures and ideas can obtain funding from a variety of sources, each with different motivations, mechanics and agendas. This unit explores the financing of new ventures through sourcing, structuring, negotiation, value creation and exit from the perspectives of both an entrepreneur and investor. This is a highly interactive, cross-disciplinary unit which will include significant spreadsheet modelling, term sheet preparation and both individual and group pitches.

Unit details and rules

Academic unit Management Education
Credit points 6
Prerequisites
? 
SMBA6004
Corequisites
? 
SMBA6001
Prohibitions
? 
None
Assumed knowledge
? 

None

Available to study abroad and exchange students

No

Teaching staff

Coordinator Karl Rodrigues, karl.rodrigues@sydney.edu.au
Lecturer(s) Karl Rodrigues, karl.rodrigues@sydney.edu.au
Type Description Weight Due Length
Presentation group assignment Case study presentation
n/a
20% Week 05
Due date: 02 Jul 2022 at 09:00
30 minutes
Outcomes assessed: LO1 LO2 LO3 LO4
Assignment Individual worksheet
n/a
30% Week 06
Due date: 06 Jul 2022 at 23:00
short answers and calculation responses
Outcomes assessed: LO1 LO2 LO3 LO4
Assignment group assignment Case study term sheet
n/a
10% Week 07
Due date: 16 Jul 2022 at 09:00
1500 words
Outcomes assessed: LO1 LO2 LO3 LO4
Assignment Individual capital raising report
n/a
40% Week 08
Due date: 23 Jul 2022 at 09:00
3000 words
Outcomes assessed: LO1 LO2 LO3 LO4
group assignment = group assignment ?

Assessment summary

  • Case study presentation: Each student will be given the opportunity to give a 3-min elevator pitch to the class on a business idea. All students in the class will select a subset of these business opportunities to be the case studies used in this group assignment.
  • Individual worksheet: Each student will be required to submit answers to a worksheet comprised of questions requiring short answers and calculation answers. The worksheet questions will be provided in class at the end of the session in Week 5.
  • Case study term sheet: Based on the presentations in Assignment 1, groups will be required to develop the case further and negotiate and submit a signed term sheet with your case group ‘counterpart’. Each group will be a ‘counterpart’ to another group in class. Details of the ‘counterparty’ approach and the required associated term sheet will be given in class.
  • Individual capital raising report: This task builds on the learnings you will have obtained from the group assignments, incorporating your knowledge of funding requirements, risk management and concepts that impede or enhance value and return. Each student will be required to write a report describing their understanding of the approach and specific details of terms that were material to their transactions - both as a founder and as an investor given the ‘counterparty’ approach integrated above.

Detailed information for each assessment 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.

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.

You may only use artificial intelligence and writing assistance tools in assessment tasks if you are permitted to by your unit coordinator, and if you do use them, you must also acknowledge this in your work, either in a footnote or an acknowledgement section.

Studiosity is permitted for postgraduate units unless otherwise indicated by the unit coordinator. The use of this service must be acknowledged in your submission.

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.

WK Topic Learning activity Learning outcomes
Week 01 1. Introduction and context – early stage financing principles, context, strategy of launch (and funding requirements) and local/regional/global context; 2. Business models, risk and value in innovation Block teaching (8 hr)  
Week 02 1. Student pitches; 2. Valuation – models and implications Block teaching (8 hr)  
Week 03 1. Venture capital – how ‘professional investors’ think, what they are looking for and what is driving their behavior; 2. Term sheets – the practical arena, boundaries, traps and inconsistencies Block teaching (8 hr)  
Week 04 1. Modelling term sheet valuation scenarios; 2. Succession, failure, harvesting and exits – realising value and return Block teaching (8 hr)  
Week 05 New funding and innovation models. Opportunities for launch Block teaching (8 hr)  

Attendance and class requirements

Lecture recordings: Note that MBA classes held at the CBD Campus are not systematically recorded and 100% class attendance is expected for each unit of the MBA Program. If there are extenuating circumstances as to why you are not able to attend a particular class, please contact your Unit Coordinator as soon as possible, and also notify your group members (if the Unit has a group work component). A course requirement is 80% attendance, and those who drop below this level may not pass the unit.

Remote attendance: This is an intensive unit with high interaction in class and in group work.  While remote attendance may be possible (facilities permitting), it is encouraged that all students attend in person.  The final block class in week 5 is the group presentations and in-person attendance will achieve the greatest learning outcomes.

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.

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. critically evaluate sources and motivations of financing new ventures
  • LO2. review, value and model new venture financing from both the entrepreneur’s and investor’s viewpoints
  • LO3. understand and negotiate funding term sheets
  • LO4. effectively present new venture proposals to potential investors.

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.

No changes have been made since this unit was last offered

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.