STUDENT FEEDBACK

This is a new course in its second year of delivery and several changes have been made in the light of last year’s feedback, notably the opportunity to gain more experience in using the tools.

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1. GENERAL INFORMATION

TO BE UPDATED FOR 2015

Academic Year 2014/15

Term Autumn 2014

Course Unit Title Venture Capital and Private Equity

Unit Code BMBA60095

Credit rating 15

Minimum no. of participants 15 Maximum no. of participants 30

Level MBA

Degree Programmes MBA

Contact Hours 30

Pre-requisite units None

Co-requisite units None

ECT* 7.5

Notional hours of Learning** 150

* ECT (European Credit Transfer and Accumulation System): There are 2 UK credits for every 1 ECT credit, in accordance with the Credit Framework (QAA). Therefore, if a unit is worth 30 UK credits, this will equate to 15 ECT.

** Notional hours of learning: The number of hours which it is expected that a learner (at a

particular level) will spend, on average, to achieve the specified learning outcomes at that level. It is expected that there will be 10 hours of notional study associated with every 1 credit achieved. Therefore if a unit is worth 30 credits, this will equate to 300 notional study hours, in accordance with the Credit Framework (QAA).

2. TEACHING ACADEMICS

Name To be advised Secretary

Room Room Tele Tele Fax Fax Email Email Office Hours 3. AIMS

The programme unit aims to introduce course members to the skills, tactics and language of venture capital and private equity. Both the theoretical and practical aspects of the topic will be explored. Alongside the theory and concepts taught, experienced practitioners, including Professors Peter Folkman and Malcolm Smith, will provide input on the practical application of the course content.

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4. BRIEF DESCRIPTION OF THE UNIT

Venture Capital and Private Equity are quite different from more traditional sources of capital for privately owned businesses, such as bank debt and retained profits. Consequently only certain types of business are likely to seek and successfully attract VC / PE finance. The structure and funding of VC / PE houses is complex and also requires that they adopt particular tactics in identifying investees and managing these, post investment. Each lecture will focus on a particular issue in the VC / PE arena, such as seed funding, growth finance, exits etc. Case studies will be used to provide participants with the challenge of engaging with issues such as deal selection, negotiation, pricing, management and exit, as well as the management of VC fund themselves.

5. INTENDED LEARNING OUTCOMES

Category of outcome Students should (please delete as appropriate) be able to:

Knowledge and

understanding Understand the nature of VC and PE funding, the types of business that they are seeking to invest in and the ways that VC Houses manage their investments in order to earn an adequate return, for their investors. The main types and sources of VC funds will be covered, so that participants will be able identify and seek out investors that match the profile of the different types of businesses that may require “equity” funding.

Intellectual skills Apply the techniques of cash-flow forecasting, entity valuation, strategic analysis, operational and change management, covered in the diploma stage of the course, to businesses undergoing rapid change whether this is caused by business formation, growth, turnaround or change of ownership (e.g. management buy-out).

Practical skills Participants will be able to appreciate:

1. How VCs / PE funds make money from the businesses in which they invest.

2. If a VC or Private Equity house would be interested in considering an investment in a particular company.

4. What terms and conditions would attach to such investments. 5. The approaches VCs would adopt in determining current and future valuations of the business.

7. How a VC would set about realising value from such an investment. Transferable skills and

personal qualities At the end of the course participants will be able to advise the Directors of a company: 1. Whether the business would benefit from a venture capital

investment

2. Actions that the management should take in order to attract such funding.

3. The consequences of raising external equity from VCs

4. In the absence of an equity injection how the management might set about realising value from the company, for themselves.

6. METHODS OF DELIVERY (including the use of E-Learning)

The course will run over 6 weeks, for one day per week, but week 5 is kept free to allow you to prepare and submit your group project presentations. The other weeks will involve relevant case studies that course participants will prepare in advance. One or more groups will be asked to present their analysis and recommendations. Presentations will be followed by class discussion and input from the course leaders. Lectures will involve inputs from faculty and practitioners.

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7. ASSESSMENT

Assessment task Word Length Weighting within unit (if

relevant) Date Due

Individual assignment 2,000 60% Monday 1st

December Group project

presentation Maximum 20 slides 25% Peer assessment adjustment of up to +/- 20% of the group mark Slide pack - Thursday 13th November. Presentations on Wednesday 19th Nov Class Participation 15%

8. STUDENT COURSE EVALUATION FEEDBACK

What did you like about this course and why:

1. Group work. Guest lectures/speakers. Real cases and interactions with VCs, entrepreneurs.

2. Good mix of theory and practice, good exposure to industry.