ARRIESGADO COLLEGE FOUNDATION, INC.

Bonifacio St., Tagum City

BACHELOR OF SCIENCE IN BUSINESS AMINISTRATION

COURSE SYLLABUS

VISION AND MISSION OF THE PROGRAM:

PROGRAM OUTCOMES:

Course Outcomes:
At the end of the semester, the students are expected to:

1. Identify the main factors that influence the fundraising of venture capital funds and partnership
2. Identify the issues relating to how to make venture capital investments
3. Understand the main issues associated with monitoring investment
4. Learn the method to exit a venture capital investment.
5. Appreciate the key factors that contribute to the success of an entrepreneurial venture

Course Number Elective 5 Venture Capital

Course Credit 3 units
Course Description This course is offered to provide students with a good grasp of the venture capital cycle. It examines
venture capital and private equity investments not previously analyzed in the finance discipline. In
particular, it focusses on entrepreneurial investment, otherwise known as venture capital or private equity
financing. The course departs from conventional investment approaches to examining risk and return, and
analyses issues associated with long term financing of growing private businesses.
Contact Hours / Week 3 Hours
Prerequisite Elective 4
References:

Metrick A. And Yasuda A. , Venture Capital & The Finance Of Innovation, Second Edition, 2011

DETAILED COURSE OUTLINE

WEEK HRS. TOPICS LEARNING STRATEGIES/ACTIVITIES ASSESSMENT OF

OUTCOMES LEARNING
OUTCOMES
PRELIM 1. Discuss five main Interactive lecture / Actual
1. The venture Capital characteristics of Discussion Assessment
Industry venture capital
Week 1-4 3hrs/ What is Venture Capital? Oral Report Demonstration
wee What do Venture 2. Explain the flow of
k Capitalist Do? funds in the venture Independent Learning Assignments
The History of Venture capital cycle
Capital Experiential Learning Short Formative
3. Explain and
Patterns of VC Test
compare other
investment Illustration
alternative
- Investment by stage Classical Test
investment
- Investment by Industry
Graded Recitation
- Investment by location
4. Enumerate and Guided Activity
discuss the group Group works
2. Venture Capital Players
activities of venture
Firms and Funds capital
The Limited Partners
VC Partnership 5. introduce key
players in venture
3. Famous Venture Capitalist capital industry
In terms of Industry
In terms of Shares 6. Present top-tier
In terms of Location Venture Capitalists
MIDTER 4. Venture Capital Returns 1. analyze the return Interactive lecture / Actual
M Industry returns of the entire venture Discussion Assessment
 - Definitions capital industry
3hrs/ - A Gross-Return Index Oral Report Demonstration
Week 5-8 wee - A net-return index 2. Discuss what
k Fund Returns value-added Independent Learning Assignments
- Definitions activities do venture
- Evidence capital perform
Experiential Learning Short Formative
Test
5. The Best Venture Capital 3. Learn the global
distribution of venture Illustration
The Economics of capital investing Classical Test
Venture Capital Graded Recitation
4. Discuss the cost of Guided Activity
The Best VCs: A capital for Group works
Subjective List international venture
capital
VC Value Added and the
Monitoring of portfolio
Firms

6. Venture Capital Around the

World

The Global distribution of

VC investing

The cost of Capital for

international VC

SEMI- 7. Term Sheets 1. Discuss the Interactive lecture / Actual

FINAL The Basics definition of the Discussion Assessment
charter and the
-Investors
investor rights Oral Report Demonstration
Week 3hrs/ -Price per Share agreement
9-12 wee -Pre-money and Post-
Independent Learning Assignments
k money Valuation 2. Analyze the main
-Capitalization types of preferred
stock and learn how Experiential Learning Short Formative
The Charter Test
to graphically
 -Dividends represent them Illustration
-Liquidation Preference Classical Test
-Voting Rights and other 3. Provide Graded Recitation
mathematical formula Guided Activity
protective Provisons
and examples to
-Mandatory Conversion Group works
illustrate the impact
-Redemption Rights of antidilution
Investor Rights protections
Agreement
-Registration Rights 4. Introduce concepts
and mechanics for
-Matters Requiring
the venture capital
Investor-Director method
Approval
Other Items 5. Discuss the four
-Rights and Restrictions common elements of
-Founders Stock venture capital
method
8. Preferred Stocks
Types of Preferred 6. Explain different
Stocks ways to implement
Antidilution Provisions the venture capital
9. The Venture Capital method
Method
The VC Method:
Introduction
-Exit Valuation
-Target Returns
-Expected Retention
-The Investment
Recommendation
The Standard VC
Method
The Modified VC Method
FINAL 10. DCF Analysis of Growth 1. Provide Interactive lecture / Actual
Companies Framework for DCF Discussion Assessment
 DCF Analysis: Concepts Analysis
DCF Analysis: Oral Report Demonstration
2. Discuss the
Mechanics concepts and Independent Learning Assignments
Graduation Value Mechanics of DCF
DCF Analysis: The analysis
Experiential Learning Short Formative
Reality-Check Model Test
3. Discuss two main
- Baseline Assumptions Illustration
methods to estimate
- Reality Check DCF exit values Classical Test
11. Comparables Analysis Graded Recitation
Introduction to 4. Analyze exit values Guided Activity
Comparables Analysis using comparables Group works
Choosing Comparable analysis
Companies 5. Learn the steps
Using Comparable necessary to perform
Companies to Estimate a more careful
the Cost of Capital comparable analysis
Grading System:

40% Base , Cumulative

Long Exam 50%

Quizzes 25%
Participation 20%
Requirements 5%
100%

Prepared by:

CHARLY MINT A. ISRAEL

INSTRUCTOR