This module deals with private equity and venture finance from the inception of a project idea, or investment, to the harvesting of the project, or investment (exiting). The first half of the module deals with the institutional backgrounds of new venture financing and the differences between entrepreneurial and ‘traditional’ corporate finance. The second half covers aspects of initial valuation and alternative ways of harvesting equity investment in a project. In particular, initial public offerings (IPOs) and mergers and acquisitions (M&As) processes, as well as financial performance of venture-backed companies, are considered. A rich set of case studies is presented to familiarise students with relevant and practical considerations in IPOs and M&As. This part will also cover a wide range of alternative financing strategies that exist in the growing field of Islamic Finance It will also address the design and structuring of Sharia-compliant products. Moreover, the module will cover the challenges that socially responsible start-up companies face in the modern digital age in both traditional markets and Islamic ones.
Learning Outcomes
By the end of the Module, students should be able to:
critically assess the differences between traditional finance and entrepreneurial finance, and evaluate and choose between the range of funding sources available to an enterprise at different stages of its growth strategy, such as Angels, Venture Capitalists, Incubators, Accelerators, Crowdfunding, etc
identify and evaluate the contractual arrangements between entrepreneurs and external investors, and explain various financial and ownership aspects of venture capital and private equity investments
apply various valuation techniques in private equity and venture capital settings and critically evaluate short- and long-term performance of venture capital-backed companies
examine critically how firms make initial public offerings and the cost of such offerings
identify and critically appraise the differences between traditional finance and Islamic finance
Assessment: 8 minutes group presentation (30%) 2,500 words individual assignment (70%)
Reassessment: Students who fail the module will resubmit the failed component(s) only. 8 minutes individual presentation (30%) 2,500 words individual assignment (70%)
