Entrepreneurial Finance, Venture Capital and Private Equity
Keywords |
Classification |
Keyword |
OFICIAL |
Management Studies |
Instance: 2023/2024 - 2S
Cycles of Study/Courses
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 |
40,00 |
Participação presencial |
10,00 |
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
The frequency will be attained by presence and participation in class, the analysis of the online materials; a written group assignment and a final test.
Only exam evaluation is not available (in both assessment seasons). However, the final test can be (re)-taken in the re-sit season for course approval. In any case, the final test only accounts for 50% of the grade.
Calculation formula of final grade
50% * Final Test + 40% * Group Assignement + 10% Class Participation