Description:

Upon successful completion of this course, the student will understand the importance and impact of funding sources for their entrepreneurial venture. This will be accomplished by reviewing the impact of venture capital in every phase of the business venture from idea to exit including planning, teambuilding, protecting intellectual capital, identifying funding sources, raising money, writing funding agreements, and managing through to an IPO or merger and acquisition. Additionally, the student will develop and present a funding proposal. 2 hrs. lecture/wk.

Supplies: Refer to the instructor's course syllabus for details about any supplies that may be required.

Textbook(s): For information see - http://bookstore.jccc.net

Course Fees: NONE

Course Objectives:

Upon successful completion of this course the student should be able to:

1. Assess their own start-up venture against criteria which includes evaluation of the business idea, their own management capability, the use of external advisors to achieve idea progress, and legal requirements for incorporation.
2. Understand the importance, applicability and functions of financial and business planning through strategic and market analysis and the development of financial projections, cost and cash flow forecasting.
3. Apply the means of recruiting and compensating superior employees via the study of performance based compensation programs including stock options and key player retention incentives.
4. Direct legal counsel in the development of intellectual property protection for their businesses in the key areas of patents, copyright and trademark law, trade secrets, licensing and employee employment contracts.
5. Identify the stages, sources and language of venture financing.
6. Recognize the practical and legal aspects of raising venture capital including deciding how much capital to raise, understanding the process of raising venture capital and the legal restrictions on raising private venture capital.
7. Demonstrate the ability to value a company’s net worth based on various approaches to company valuation, including the sales/earnings multiples method, the real options method, the venture capital method and the use of discounted cash flow to establish company viability.
8. Recognize the history, purpose, structure, activities and priorities of the venture capital fund from the venture capitalist’s perspective to enable a successful relationship with this key source of venture funding.
9. Identify alternative sources of venture capital applicable to start-up companies including private investors/angels, corporate investors and financial institutions.
10. Understand the process of raising funds through an initial public offering including the advantages/disadvantages of this source of funding, preparing the company and management team for an IPO and review the primary securities documents required to complete this activity.
11. Compare a mergers and acquisition strategy vs. IPO, VC and private funding approaches as an alternative to supply capital required for company growth.
12. Describe the steps required to successfully conduct a merger and acquisition transaction including the process, strategies, tender offers, legal issues (merger agreements, antitrust issues, fairness opinions), and various types of M&A activity (asset sales and stock transactions).
13. Comprehend the basics of various forms of company restructuring including spin-offs and how to financially structure spin-offs.
14. Address issues related to bankruptcy and the dissolution of start-up companies.
15. Develop and present a funding proposal.

Content Outline & Competencies:

I. Establishment and Development of a Start-up Venture
   A. Review of issues a company must address in the early stages of
development
   B. Examine the business idea
   C. Review the initial team development strategy
   D. Identify sources of financial aid available to the company in its
preliminary stages
   E. Identify recruitment and remuneration strategies of employees
   F. Recognize the economic benefits intellectual property brings to the
business

II. Financing the New Business Venture
   A. Describe the stages of development of the venture
   B. Describe the process of raising capital and capital sources
   C. Discuss the main contractual arrangements involved in venture
capital investment
   D. Review valuation strategies used at every stage in the life of a
company
   E. Analyze the established valuation models and their relevance to
various types of companies and various stages of capital raising

III. Venture Capital Investors
   A. Review the entities and institutions which invest in startup
companies
   B. Discuss the establishment, management, and liquidation mechanisms of
venture capital funds
   C. Discuss private investors (angels)
   D. Review direct investments in startup companies by investment banks
and other financial institutions

IV. Raising Capital from the Public
   A. Identify when in the development of a company that it typically can
raise capital from the public
   B. Analyze the differences in a private company and a public company
   C. Review the advantages and disadvantages of going public to the
company and to the investors
   D. Describe the process of going public in the United States

V. Sales of Companies, Restructuring, and Dissolution
   A. Identify the pros and cons of sales versus IPOs
   B. Identify the main techniques used for mergers and acquisitions
   C. Discuss the rationale and procedures involved in the dissolution of
a company

VI. Funding Proposals
   A. Develop a funding proposal for your entrepreneurial venture
   B. Present the funding proposal for your entrepreneurial venture

Methods of Evaluation of Competencies:

Evaluation of student mastery of course competencies will be accomplished using the following methods:

Examinations                          30% of grade
In-class projects/reaction reports    40%
Written funding proposal              15%
Oral presentation of funding proposal 15%

Grade Criteria:

 A = 90 – 100%
 B = 80 – 89%
 C = 70 – 79%
 D = 60 – 69%
 F = 59% or below

Caveats:

1. Computer Literacy Expectations: Students will need basic word processing and internet searching skills for the completion of some papers, exercises and projects.

Disabilities:

If you are a student with a disability, and if you will be requesting accommodations, it is your responsibility to contact Access Services. Access Services will recommend any appropriate accommodations to your professor and his/her director. The professor and director will identify for you which accommodations will be arranged.

JCCC provides a range of services to allow persons with disabilities to participate in educational programs and activities. If you desire support services, contact the office of Access Services for Students With Disabilities (913) 469-8500, ext. 3521 or TDD (913) 469-3885. The Access Services office is located in the Success Center on the second floor of the Student Center.