COURSE NUMBER: MBA295D.1

COURSE TITLE: New Venture Finance

UNITS OF CREDIT: 3 units

INSTRUCTORS: Adair Morse

E-MAIL ADDRESSES:  morse@haas.berkeley.edu

CLASS WEB PAGE LOCATION: http://bspace.berkeley.edu

MEETING DAY(S)/TIME: Monday and Wednesday, 4:00-5:30PM

PREREQUISITE(S): none

CLASS FORMAT: Cases

REQUIRED READINGS: A coursepack with cases and readings.

BASIS FOR FINAL GRADE: The course puts near equal weighting on (i) an exam, (ii) class participation / weekly memos, and (iii) two select case memos and a project. The project is meant to be small in the sense of not being a semester-long work effort, but is an opportunity for groups to explore ideas together and with me and to think about using finance strategically with an opportunity.

ABSTRACT OF COURSE'S CONTENT AND OBJECTIVES:

How do entrepreneurs successfully raise finance?  In New Venture Finance, we take the perspective of the entrepreneur. Our first step is to figure out the rules of the game: What type of financier might be interested in our new venture and why? How will the venture capitalist or angel value our ideas, and what will the financing package look like? How will funding evolve as the startup grows, and how will investors exit the deal? As we put the pieces of our knowledge into practice in cases, the course evolves to the second step, of positioning our new venture ideas for success, not just in raising finance but in using finance strategically. The course focuses on raising equity (VC and angel) finance. Pools of capital are changing, and thus, we also take a serious look at alternatives: crowdfunding, micro-alternatives, credit, social and impact funds, public partnerships, and corporate VC. Many of the cases are local, as California is indeed a special place, but we also take the world as large and study successful startup finance in new markets globally. Woven in the course is a small project with a lot of freedom. Students use the opportunity to explore how funding options fit with an idea, to brainstorm and get on board with a team to package an idea for financiers, or just to learn how come up with ideas and think critically about them. The project complements our learning, but it is not meant to be all-encompassing. NVF is a structured, case-based class with the goal of ensuring that class members leave the course knowing the venture landscape and have the knowledge and skill to be strategic and wise in raising finance.

BIOGRAPHICAL SKETCH:

Adair Morse began her career as an entrepreneur, running goods production and design in transition Poland for export to the U.S. She then worked in the resource industry on an EPA Superfund cleanup site and in corporate America. Before gaining her Ph.D. from the University of Michigan, Morse received masters degrees in statistics and agricultural economics. Morse’s current research looks at social venture investment, corporate governance and corruption, asset management, and state planning in sovereign funds. Morse has taught Entrepreneurial Finance and Private Equity at the University of Chicago/Booth School, Global Entrepreneurial Finance at Booth and Haas, and now teaches New Venture Finance at Haas.