BAFN306 - Entrepreneurial Finance

Year

Credit points

Campus offering

Prerequisites

Nil

Teaching organisation

Unit rationale, description and aim

Organisations have a responsibility to ensure the proper use of resources whether these are natural, financial, or human resources. This unit provides a practical understanding of the application of financial theory to newly established, high-growth and entrepreneurial companies.

Covering the availability of funding of such companies from the perspectives of both the investor and the company receiving investment, the unit explains the global concepts underpinning high risk investments from inception to realisation. Further, it develops understanding of a structured approach to raising both debt and equity capital from a range of sources such as venture capitalists, angel investors and private equity firms. The topics covered include preparing business plans to raise capital, valuing high-growth businesses, the preparation of Term Sheets covering funding agreements and realising value from new venture investments within an ethical framework.

Learning outcomes

To successfully complete this unit you will be able to demonstrate you have achieved the learning outcomes (LO) detailed in the below table.

Each outcome is informed by a number of graduate capabilities (GC) to ensure your work in this, and every unit, is part of a larger goal of graduating from ACU with the attributes of insight, empathy, imagination and impact.

Explore the graduate capabilities.

On successful completion of this unit, students should be able to:

LO1 - Analyse the key concepts associated with entrepreneurial finance (GA4, GA5)

LO2 - Apply the key concepts associated with harvesting value from new venture investments taking into account ethical perspectives (GA3, GA5)

LO3 - Evaluate the future financial needs of a growing business and justify financial forecasts under conditions of uncertainty (GA5, GA8)

LO4 - Construct business plans aimed at raising capital utilising relevant information and tools (GA5, GA6)

LO5 - Analyse high-growth businesses and prepare and interpret term sheets by working collaboratively (GA5, GA7).

Graduate attributes

GA3 - Apply ethical perspectives in informed decision making

GA4 - Think critically and reflectively 

GA5 - Demonstrate values, knowledge, skills and attitudes appropriate to the discipline and/or profession 

GA6 - Solve problems in a variety of settings taking local and international perspectives into account

GA7 - Work both autonomously and collaboratively

GA8 - Locate, organise, analyse, synthesise and evaluate information 

Content

Topics will include:

• examining the concepts and contexts of entrepreneurial finance in the ethical perspective
• business finance models from an entrepreneurial perspective
• using relevant information to develop the business plan
• assessing financial needs from practical perspectives
• financial forecasting
• local and global perspectives
• estimating new venture valuation
• evaluating financial contracting
• arguing agency problems and incentives
• differentiating between types of venture capital
• investigating debt financing
• analysing harvesting
• collaborating in the entrepreneurial finance context

Learning and teaching strategy and rationale

The teaching and learning strategy is built on a “student-focused approach”. ACU’s teaching policy focuses on learning outcomes for students. Our teaching aims to engage students as active participants in the learning process while acknowledging that all learning must involve a complex interplay of active and receptive processes, the constructing of meaning for oneself, and learning from others. ACU promotes and facilitates learning that is autonomous and self-motivated, is characterised by the individual taking satisfaction in the mastering of content and skills and is critical, looking beneath the surface level of information for the meaning and significance of what is being studied.

The schedule of the workshop is designed in such a way that students can achieve intended learning outcomes sequentially. Teaching and learning activities will apply the experiential learning model, which encourages students to apply higher order thinking. The unit ensures that learning activities involve real-world scenarios that in turn assist with ‘real-world’ preparedness. The unit also uses a scaffolding technique that builds a student’s skills and prepares them for the next phase of the learning process.

This unit is structured with required upfront preparation before workshops, most students report that they spend an average of one hour preparing before the workshop and one or more hours after the workshop practicing and revising what was covered. The online learning platforms used in this unit provide multiple forms of preparatory and practice opportunities for you to prepare and revise. It is up to individual students to ensure that the out of class study is adequate for the optimal learning outcomes and successes.

Mode of delivery: This unit is offered in different modes. These are: “Attendance” mode, “Blended” mode and “Online” mode. This unit is offered in three modes to cater to the learning needs and preferences of a range of participants and maximise effective participation for isolated and/or marginalised groups.

Attendance Mode

In a weekly attendance mode, students will require face-to-face attendance in specific physical location/s. Students will have face-to-face interactions with lecturer(s) to further their achievement of the learning outcomes. This unit is structured with required upfront preparation before workshops, most students report that they spend an average of one hour preparing before the workshop and one or more hours after the workshop practicing and revising what was covered. The online learning platforms used in this unit provide multiple forms of preparatory and practice opportunities for you to prepare and revise.

Blended Mode

In a blended mode, students will require intermittent face-to-face attendance determined by the School. Students will have face-to-face interactions with lecturer(s) to further their achievement of the learning outcomes. This unit is structured with required upfront preparation before workshops. The online learning platforms used in this unit provide multiple forms of preparatory and practice opportunities for you to prepare and revise.

Online Mode

In an Online mode, students are given the opportunity to attend facilitated synchronous online seminar classes with other students and participate in the construction and synthesis of knowledge, while developing their knowledge. Students are required to participate in a series of online interactive workshops which include activities, knowledge checks, discussion and interactive sessions. This approach allows flexibility for students and facilitates learning and participation for students with a preference for virtual learning.

Assessment strategy and rationale

Assessments are used primarily to foster learning. ACU adopts a constructivist approach to learning which seeks alignment between the fundamental purpose of each unit, the learning outcomes, teaching and learning strategy, assessment and the learning environment. In order to pass this unit, students are required to achieve an overall score of at least 50%. Using constructive alignment, the assessment tasks are designed for students to demonstrate their achievement of each learning outcome.

Assessments are the same regardless of whether teaching mode is attendance, blended, or online. This is indicated in the overview of assessment table below.

Overview of assessments

Representative texts and references

Leach JC & Melicher RW 2020, Entrepreneurial finance, 7th edn, Cengage Learning, USA.

Smith JK, Smith RL 2019, Entrepreneurial finance: strategy, valuation and deal structure, 2nd edition, Stanford Business Books, Palo Alto, CA. 

JOURNALS

Journal of Social Entrepreneurship 

International Journal of Entrepreneurship and Innovation

Journal of Business Venturing

Journal of Entrepreneurship and Public Policy 

Journal of enterprising communities: people and places in the global economy 

Journal of Entrepreneurship and Emerging Economies 

Journal of International Entrepreneurship

The Journal of Product Innovation Management

Journal of Small Business and Enterprise Development

Entrepreneurship and Regional Development

Entrepreneurship: Theory and Practice

Journal of Small Business and Entrepreneurship

Journal of Small Business Management

OTHER MEDIA

Shark Tank

Dragon’s Den

SBS, ABC

https://entrepsim.com/the-six-entrepsim-decisions/

http://www.smartsims.com/