Private Equity and Venture Capital

A.Y. 2019/2020
Lesson for
9
Max ECTS
60
Overall hours
SSD
SECS-P/11
Language
English
Learning objectives
The course aims at providing students with theoretical knowledge and analytical tools to evaluate financing opportunities for prospective entrepreneurs and more mature companies.

Specifically, by the end of the course the students will gain knowledge of:

The most current theories of corporate finance,
How the financial needs and financial opportunities of companies evolve with their life-cycle, with a particular attention to the case of start ups,
The functioning of the most established financial alternatives, such as bank finance, venture capital, private equity, secondary markets
The recent trends in the provision of entrepreneurial finance, due to the fintech revolution
The rationale of government intervention in entrepreneurial finance, and the opportunities emerging from such intervention.

In terms of practical tools and skills, the students will be able to:

Develop a valuation report for a start up
Read a venture capital or private equity term sheet and contract
Consider the advantages and disadvantages of different financing opportunities

Course structure and Syllabus

Active edition
Yes
Responsible
SECS-P/11 - FINANCIAL MARKETS AND INSTITUTIONS - University credits: 9
Lessons: 60 hours
Professor: Quas Anita
ATTENDING STUDENTS
Syllabus
1. Introduction: course description (objectives, class organization) and introductory concepts
2. Theory of corporate finance and entrepreneurial finance: trade off theory, agency theory, pecking order theory, information asymmetries and financial constraints
3. Bootstrapping and debt finance: adverse selection and moral hazard in bank lending, credit rationing
4. An overview of Private Equity and Venture Capital: the role of PE and VC in the entrepreneurial finance ecosystem, history, legal and fiscal frameworks, market trends and figures, in Europe and in the USA
5. Venture Capital financing: the VC cycle, fundraising, investing, contracting, monitoring, exiting
6. Venture Capital valuation techniques
7. Later stage Private Equity: growth equity, buyouts, turnaround and distressed financing
8. Initial Public Offerings: characteristics, trends, unicorns
9. Government intervention: guaranteed loans, government venture capital funds, subsidies, main actors
10. Other equity investors: business angels, corporate venture capital investors, bank-affiliated venture capital investors, university-affiliated venture capital investors
11. Fintech revolution: crowdfunding, peer to peer lending and ICOs
12. Bonds, loans and securitization
NON-ATTENDING STUDENTS
Syllabus
1. Introduction: course description (objectives, class organization) and introductory concepts
2. Theory of corporate finance and entrepreneurial finance: trade off theory, agency theory, pecking order theory, information asymmetries and financial constraints
3. Bootstrapping and debt finance: adverse selection and moral hazard in bank lending, credit rationing
4. An overview of Private Equity and Venture Capital: the role of PE and VC in the entrepreneurial finance ecosystem, history, legal and fiscal frameworks, market trends and figures, in Europe and in the USA
5. Venture Capital financing: the VC cycle, fundraising, investing, contracting, monitoring, exiting
6. Venture Capital valuation techniques
7. Later stage Private Equity: growth equity, buyouts, turnaround and distressed financing
8. Initial Public Offerings: characteristics, trends, unicorns
9. Government intervention: guaranteed loans, government venture capital funds, subsidies, main actors
10. Other equity investors: business angels, corporate venture capital investors, bank-affiliated venture capital investors, university-affiliated venture capital investors
11. Fintech revolution: crowdfunding, peer to peer lending and ICOs
12. Bonds, loans and securitization
Lesson period
Third trimester
Lesson period
Third trimester
Assessment methods
Esame
Assessment result
voto verbalizzato in trentesimi
Professor(s)