Entrepreneurial Finance, Venture Capital and Private Equity

Code:

2MiF24

Acronym:

EVPE

Keywords
Classification	Keyword
OFICIAL	Management Studies

Instance: 2020/2021 - 2S

Active?	Yes
Course/CS Responsible:	Master in Finance

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
MIF	52	Official Syllabus after 2020-2021	1	-	3	21	81

Teaching language

English

Objectives

Entrepreneurship, whether in its most mediatic form (creation of new companies), or in its least publicized form - but no less impactful (corporate entrepreneurship or intrapreneurship) - is the pillar of the medium and long-term growth of employment and of the economy.

This activity, due to its specificity and risk, requires adequate financing instruments that follow principles, processes and methodologies different from traditional finance, so they fall into a class of assets called alternative investments.

It is in this context that Venture Capital emerges, with a mission to finance companies, preferably innovative and high growth and impact ones, in their early phases of startup and growth.

In addition, for Entrepreneurship to have a significant and lasting impact, it needs an evolving and active transactions market - in the form of mergers and acquisitions. Private Equity (or buyouts in Anglo-Saxon markets) is a facilitating tool for this market of change of control in Companies.

Private Equity and Venture Capital (PE&VC) belong to the class of alternative assets that bring long-term capital to private (unlisted) companies. Unlike passive investments on the stock exchange, PE&VC nvestors actively manage their portfolios and the companies in which they invest in order to generate long-term value for all their stakeholders and an adequate return for their investors.

PE&VC is a relatively recent industry in virtually all of the world. It has, however, grown at a very fast pace.

The target companies covered by this industry have been increasingly diversified, both in terms of size, sector, life cycle or geographies, with PE more focused on larger businesses in stable companies and with good cash-flow generation, while VC focuses more on innovative, fast-growing projects, especially in the technology area. 

The objective of this course is to teach how these instruments work and give tools to the students that help them to interact with this type of investors in the capacity of entrepreneurs, consultants, financiers or investors.

Learning outcomes and competences

- Knwoledge about how PE&VC investment works
- Learn the decision criteria and how a PE&VC investor works
- How to negociate with a PE&VC company

Working method

Presencial

Program

1. Entrepreneurship
2. Venture Capital
3. Private Equity

Mandatory literature

Cyril Demaria; Introduction to Private Equity: Venture, Growth, LBO and Turn-Around Capital

Teaching methods and learning activities

Classroom Lectures
Class Discussion
Case Studies

Evaluation Type

Distributed evaluation with final exam

Assessment Components

Designation	Weight (%)
Trabalho prático ou de projeto	50,00
Teste	50,00
Total:	100,00

Amount of time allocated to each course unit

Designation	Time (hours)
Estudo autónomo	35,00
Frequência das aulas	21,00
Trabalho escrito	25,00
Total:	81,00

Eligibility for exams

Frequency will be attained by presence and participation in class, the analysis of the online materials; by a written group assignement and a final test.

Calculation formula of final grade

50% * Final Test + 50% * Group Assignement