University of Technology SydneyHandbook 2008

25764 Venture Capital Finance

Faculty of Business: Finance and Economics
Credit points: 3 cp

Subject level: Postgraduate

Result Type: Grade and marks

Requisite(s): 25741 Capital Markets OR 25765 Corporate Finance
These requisites may not apply to students in certain courses.
There are also course requisites for this subject. See access conditions.

Handbook description

This subject examines the nature of the venture capital market and investment processes, and the growing number of financial institutions involved as venture capital suppliers. It analyses the various types of new ventures appropriate for venture capital finance, including start-up, expansion and management buy-out.

Subject objectives/outcomes

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

  1. Understand the nature and types of venture capital
  2. Evaluate the investment process and the impact of Corporations Law relating to venture capital
  3. Understand the implications of an initial public offerings and the role of due diligence.

Contribution to graduate profile

This unit examines the nature of the venture capital market, investment processes and the growing number of financial institutions involved as venture capital suppliers.

It also analyses the various methods for financing business growth and relevant legal and market issues.

Teaching and learning strategies

This will be achieved in a intensive lecture-seminar format where practical case studies and examples will be analysed.

Content

  • Types of business finance including venture capital: what, why, who, where
  • Types of venture capital and venture capital industry overview
  • Venture capital process / timetable
  • Participants and roles
  • Need and Valuation
  • VC and IPO planning
  • Information memorandum
  • Equity targeting and funding
  • Corporations Act and initial public offerings
  • Due diligence and selection
  • Industry trends and information.

Assessment

Asssignment (Individual)40%
This will assess students' understanding of the concepts of fund raising in international markets. It will also allow students to demonstrate that they can use both spreadsheets and word processing packages to tackle practical problems. This assignment will allow students to demonstrate that they have met objectives 1-3.
Final Exam (Individual)60%
This exam, which may consist of multiple choice and short answer questions, will test students' understanding of the theory and their ability to apply the theory to financial decisions. This will enable students to demonstrate that they have met objectives 1-3.

Recommended text(s)

Enterprise and Venture Capital 4th Edition – A business builder's and investor's handbook – Christopher Golis – Allen and Unwin.

Indicative references

Australian Venture Capital Guide (Victor Bivel)