New Venture Finance: Startup Funding for Entrepreneurs

About this course: This course is for aspiring or active entrepreneurs who wants to understand how to secure funding for their company. This course will demystify key financing concepts to give entrepreneurs and aspiring entrepreneurs a guide to secure funding. Examine the many financing options available to get your new venture funded. Learn the basics of finance, valuations, dilution and non-dilutive funding sources. Understand capital structure for new ventures, term sheets and how to negotiate them, and the differences between early-stage versus later-stage financing. Develop an understanding of how to develop winning investor pitches, who and when to pitch, how to avoid common mistakes that limit the effectiveness of the pitch, and how to ‘get to the close’. Key questions answered within the course include: * When to raise outside capital? * What kind of investors invest by stage and where to find them? * What are your fundraising options? * What are the key components of the term sheet? * How to perform company valuations? * How to pitch to investors? * What techniques help the entrepreneur ‘get to the close’? With this course, students experience a sampling of the ideas and techniques explored in the University of Maryland's master's degree in technology entrepreneurship, an innovative 100% online program. Learn more at http://mte.umd.edu/landing.

Created by:  University of Maryland, College Park

• Taught by:  Michael R. Pratt, Lecturer of Technology Entrepreneurship

  Maryland Technology Enterprise Institute (Mtech)

Basic Info Course 3 of 4 in the Entrepreneurship: Launching an Innovative Business Specialization Commitment 3-5 hours/week Language English How To Pass Pass all graded assignments to complete the course. User Ratings 4.6 stars Average User Rating 4.6See what learners said Coursework

Each course is like an interactive textbook, featuring pre-recorded videos, quizzes and projects.

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University of Maryland, College Park The University of Maryland is the state's flagship university and one of the nation's preeminent public research universities. A global leader in research, entrepreneurship and innovation, the university is home to more than 37,000 students, 9,000 faculty and staff, and 250 academic programs. Its faculty includes three Nobel laureates, three Pulitzer Prize winners, 47 members of the national academies and scores of Fulbright scholars. The institution has a $1.8 billion operating budget, secures $500 million annually in external research funding and recently completed a $1 billion fundraising campaign.

Syllabus


WEEK 1


The Early Stage Investment Landscape



This session provides insights into the investment landscape, to include how investors and lenders evaluate new ventures. Key terminology and principles are addressed to provide learners without an accounting or finance background with an understanding of these areas.


15 videos, 42 readings expand

1. Video: Preview of the Course
2. Video: Welcome to New Venture Finance
3. Reading: Meet Michael Pratt
4. Reading: Course overview
5. Reading: Our suggested book for the course
6. Reading: Connect with your classmates
7. Video: Preview of the Master of Professional Studies in Technology Entrepreneurship
8. Reading: E&Y Global Venture Capital Insights
9. Video: Special Interview with Andrew Sherman, Attorney and Author
10. Reading: The Shifting Investor Landscape
11. Reading: New Venture Landscape
12. Reading: Optional Reading: Sherman
13. Video: The investment landscape
14. Reading: Lecture Slides
15. Reading: Forbes - 10 Terms You Must Know Before Raising Startup Capital
16. Reading: Tech Republic - Startup and Venture Capital Terms You Should Know
17. Reading: Washington, DC Archangels - Financing Terms
18. Reading: Optional Reading: Sherman
19. Video: Do you speak the language of raising start-up capital?
20. Reading: Lecture Slides
21. Reading: Forbes - How To Build A Billion Dollar Business Plan: 10 Top Points
22. Reading: U.S. Small Business Administration - How to Write a Business Plan
23. Reading: Optional Reading: Sherman
24. Video: Why should you start with the business plan?
25. Reading: Lecture Slides
26. Reading: Global Entrepreneurship Institute - What Financials Do We Need For Investors?
27. Reading: Tomasz Tunguz - The 10 Most Important Metrics In A Startup’s Financial Statements
28. Video: What do venture capitalists look for in a "good plan"?
29. Reading: Lecture Slides
30. Video: What financial statements do investors want to see?
31. Reading: Lecture Slides
32. Reading: Forbes - Mastering the Balance Sheet Can Make or Break A Startup
33. Reading: TD Bank - How to Develop a Balance Sheet
34. Video: How do you develop a balance sheet?
35. Reading: Lecture Slides
36. Reading: TD Bank - Sample Balance Sheet
37. Reading: Purchase Area Development District - Balance Sheet Template in PDF
38. Reading: Money-Zine - Building an Income Statement
39. Reading: Forbes - Top 5 Reasons EBITDA is a Great Big Lie
40. Video: What should an income statement present?
41. Reading: Lecture Slides
42. Reading: Accounting Coach - Introduction to Cash Flow Statement
43. Video: What is the purpose of the cash flow statement?
44. Reading: Lecture Slides
45. Reading: Entrepreneur - How to Choose the Best Legal Structure for Your Startup
46. Reading: Launchhouse - Deciding the Best Business Structure for Your Startup
47. Reading: Optional Reading: Sherman
48. Video: What corporate structure should I use?
49. Reading: Lecture Slides
50. Video: Special Interview with Michael Labriola, Attorney
51. Reading: Seedcamp - How Does an Early-stage Investor View Early-stage Companies
52. Reading: Quora - What Metrics Do VCs Look for in Early-stage Companies?
53. Reading: Both Sides of the Table - The Four Main Things Investors Look for in a Startup
54. Reading: Optional Reading: Sherman
55. Video: How do investors view your early stage venture?
56. Reading: Lecture Slides
57. Reading: NEWCO Project Worksheet

Graded: Early Stage Investment Landscape
Graded: NEWCO Project

WEEK 2


Sources of Capital for the Early Stage Company



This session examines the options that entrepreneurs face in where to raise their financial capital from in the early stages of their venture. From friends and family, to angel investors and venture capitalists, the pros and cons of each source of capital are explored.


8 videos, 16 readings expand

1. Reading: Entrepreneur - Four Common Venture Capital Myths
2. Reading: Madison Park Group - Guide to Venture Capital
3. Reading: Optional Reading: Sherman
4. Video: Sources of capital
5. Reading: Lecture Slides
6. Reading: Optional Reading: Sherman
7. Video: Where to find investors?
8. Reading: Lecture Slides
9. Reading: Optional Reading: Sherman
10. Video: Why consider friends and family as investors?
11. Reading: Lecture Slides
12. Reading: Optional Reading: Sherman
13. Video: What’s bootstrapping?
14. Reading: Lecture Slides
15. Reading: Optional Reading: Sherman
16. Video: Are incubators and accelerators a fit?
17. Reading: Lecture Slides
18. Video: Special Interview with Rick Gordon of Mach37
19. Reading: Optional Reading: Sherman
20. Video: What are angel investors?
21. Reading: Lecture Slides
22. Reading: Optional Reading: Sherman
23. Video: Are you ready to raise capital?
24. Reading: Lecture Slides

Graded: Sources of Capital
Graded: Project - Sources of Capital

WEEK 3


Getting Funded – Steps in the Funding Process
This session discusses the techniques and tools to secure funding for a new venture. This provides insights into how entrepreneurs can create a comprehensive funding strategy for their new venture.


9 videos, 21 readings expand

1. Video: Steps in the funding process
2. Reading: Lecture Slides
3. Video: Special Interview with Jonathan Aberman, Venture Capitalist
4. Reading: Optional Reading: Sherman
5. Video: What is due diligence?
6. Reading: Lecture Slides
7. Reading: Startup Valuation Calculator
8. Reading: Optional Reading: Sherman
9. Video: What is your company worth?
10. Reading: Lecture Slides
11. Reading: Optional Reading: Sherman
12. Video: How to negotiate a term sheet?
13. Reading: Lecture Slides
14. Reading: Optional Reading: Sherman
15. Video: How to establish common stock?
16. Reading: Lecture Slides
17. Reading: K9 Ventures - Thoughts on Convertible Notes
18. Reading: Series Seed - Why Series Seed is better than capped convertible notes
19. Reading: Sample - Form of convertible promissory note
20. Reading: Optional Reading: Sherman
21. Video: When to use convertible notes?
22. Reading: Lecture Slides
23. Video: What is preferred stock?
24. Reading: Optional Reading: Sherman
25. Reading: Lecture Slides
26. Reading: CB Insights - Top 15 Corporate VCs
27. Reading: CB Insights - Evaluating the effectiveness of corporate venture capital investment in tech
28. Video: When to use alternative sources of capital?
29. Reading: Optional Reading: Sherman
30. Reading: Lecture Slides

Graded: Principles of Funding Strategies
Graded: Create a Funding Strategy for a New Venture Concept

WEEK 4


Pitching Investors and Closing the Round
This final session instructs learners on how to share their investment opportunity with investors and partners. With practical tips on the do's and don'ts of pitching, learners are able to develop a compelling story for their new venture.


7 videos, 16 readings expand

1. Reading: Entrepreneur - What Investors Really Want
2. Video: What do investors want to see?
3. Video: Guest Lecture with U.S. Secretary of Commerce Penny Pritzker - What are Investors Looking for in a Business Plan?
4. Reading: Lecture Slides
5. Reading: Forbes - The ultimate pitch deck to raise money for startups
6. Reading: BestPitchDecks.com - The best startup pitch decks
7. Video: How to create the pitch deck?
8. Reading: Lecture Slides
9. Reading: Inc. Magazine - How to tell your company’s story
10. Video: How to tell your story?
11. Reading: Lecture Slides
12. Reading: KC Source Link - Pitches gone wild: What not to do when you pitch your startup to investors
13. Reading: Inc. Magazine - Simple pitch tips that will attract investors to your startup
14. Video: What are the do’s and don’ts of the pitch?
15. Reading: Lecture Slides
16. Reading: Entrepreneur - Closing a startup financing deal
17. Video: How to close the round?
18. Reading: Lecture Slides
19. Reading: Series A Startup - CEO Salary
20. Reading: Startup Equity for Employees
21. Reading: Series Seed (full set of deal documents)
22. Video: Information Session
23. Reading: Learn

Graded: Fundamentals of "The Pitch"
Graded: Create "The Pitch" for a New Venture Concept