The module deals with private equity and venture finance from inception of the idea to harvesting (exiting) of the investment. The first half of the module deals with institutional background of new venture financing and differences between entrepreneurial and ‘traditional’ corporate finance. The second half will cover aspects of initial valuation and alternative ways to harvest equity investments. In particular, we deal with the Initial Public Offerings (IPO) process and financial performance of venture-backed- companies.

By the end of the module the student should be able to:

• critically analyse the differences between venture capital and mainstream corporate finance;
• identify and critically appraise institutional differences in raising and structuring private equity funds;
• demonstrate comprehensive knowledge and understanding of various financial and ownership aspects of private equity and venture capital investments;
• apply various valuation techniques in private equity settings;
• show a systematic understanding of how firms make initial public offerings and the cost of such offerings;
• critically evaluate short and long term performance of venture capital-backed companies.