GS503 VENTURE

CAPITAL FINANCING :

COURSE OVERVIEW

Prof.Stephen OngBSc(Hons)Econs (LSE), MBA (Bradford)

Visiting Professor, Shenzhen University

Academic Fellow, Entrepreneurship & Innovation,

The Lord Ashcroft International Business School,

Anglia Ruskin University Cambridge UK

MSC TECHNOPRENEURSHIP

• Introduction to Course1

• Course Assessment2

• Coursework Requirements3

Today’s Overview

Course Leadership

COURSE LEADER

Stephen ONG

Visiting Professor,

Shenzhen University,

P.R.China

B.Sc. (Hons)

Economics, London

School of Economics,

University of London

MBA (International

Business), University of

Bradford, UK

EXPERIENCE

Visiting Fellow

Lancaster University

Management School, UK

Birmingham City University

Edinburgh Napier University

Senior Management

Barclays Bank plc, UK

AIB Capital Markets, UK, MY

Private equity VC

NSTB, Singapore

Sojitz, Japan

Neptunus, China

Learning ObjectivesThe course aims are :

to provide an overview of venture capital financingconcepts, characteristics and environments;

to gain knowledge on the venture capital industry,financial and investment market;

to understand valuation analysis of venture capitalinvestment including cost of capital, discountedcash flow and risk and returns;

to analyze various frameworks for decisionmaking about investing in cutting edge projectsand prototypes;

to know the strategic financial tools for investingin research and development intensive companiesof high value;

to discuss how to integrate financial tools from theperspective of venture capitalist intertwined withbuyers’ utilities.

Learning Outcomes (I)Upon completion of the course, the students should be ableto:

1. Understand the function of venture capital financingincluding key principles and practices;

2. Explain various components and functions ofventure capital financing principles and practices;

3. Able to undertake individual assignment and/or teamresearch and/or consultancy based projects.

4. Understand the ethics and corporate governance inventure capital financing.

5. Cultivate group communication and leadership byencouraging group discussions and assignments;

6. Conduct a presentation professionally.

Learning Outcomes (II)Upon completion of the course, the students should be ableto:

7. Apply a significant range of professional andcontemporary tools, techniques and structures in venturecapital financing;

8. Analyze, plan and undertake effective strategic decisionmaking;

9. Apply various financial analytical tools for strategic andcritical decision making.

10. Formulate venture capital financing strategy and identifyvarious tools for analyzing strategic decision making;

11. Continuously improve knowledge and skills in acquiringknowledge in venture capital financing.

12. Initiate, manage and drive change through financing viaventure capital.

Course Content

Session 1 : Venture Capital

Basics

Session 2 : Risk and Returns

Sessions 3-5: Valuation

Sessions 6-9: Partial Valuation

Sessions 10-14 : The Finance of

Innovation

Course Timetable

(Attendance is Compulsory)

Lecture (Stephen Ong)

Monday 6:30 pm – 9:45 pm*

(C415)* Class times will be subject to changes. Notice will be

given 7 days in advance on LMS.

Assessment

Coursework (70%)

Participation at Case

Study Group

discussions (10%)

Individual written

assignment (20%) on

case studies.

Individual presentation

and submission of

written project paper

(40%).

Examination (30%)

Final Examination

(30%) Closed book

examination based

on the learning

outcomes for

Sessions 1 to 14.

Project Paper

CONTENT

Select a technology start-up venture and prepare a case study with the following Sections : Abstract

Summary

Introduction

Background of Company

External Environmental Analysis – PESTEL

Industry Analysis – Porter’s 5 Forces

Valuation Approach

Discussion of Valuation Issues

Proposed Term Sheet

Conclusion

ASSESSMENT

Case Analysis of 15-20

pages, approximately

3,000 words

Individual presentations

Report Section,

approximately 15

minutes.

Report Submission

Deadline : Week 14

Presentations: Week

13-14

Resources : E-Learning

LMS for Course Information, Plan, Schedule,

Assessment, Assignment Deadlines

https://

Lecture Slides

http://www.slideshare.net/stephenongch/

Online learning at Facebook : Gemini RI

http://www.facebook.com/?ref=tn_tnmn

Resources : Core Reading

Metrick, Andrew and Yasuda, Ayako (2011) Venture

Capital & the Finance of Innovation. 2nd Edition. John

Wiley & Sons.

Lerner,Losh, Hardymon, Felda and Leamon, Ann (2012).

Venture Capital and Private Equity : A Casebook. 5th

Edition. John Wiley & Sons.

Finkel, Robert A. (2010). The Masters of Private Equity

and Venture Capital. McGraw-Hill.

Demaria, Cyril (2010). Introduction to Private Equity.

John Wiley & Sons.

Berkery, Dermot (2008). Raising Venture Capital for the

Serious Entrepreneur. McGraw-Hill

Consultation Hours

(By appointment only)

Stephen Ong (FoBIS)

Monday 6:00 pm – 6:30 pm

Email : stephenongch@gmail.com

QUESTIONS?