Financing Technology Ventures

This course focuses on financing of technology ventures and innovation from three different points of view – that of an entrepreneur, a professional investor, and a policy-maker.

From the entrepreneurs point of view, we will discuss financing strategies for different business models at the different stages of startup formation and examine the entrepreneurial finance industry: the sources of startup funding (from crowdfunding and venture capital to governments and corporations), motivations of entrepreneurs and investors, and the contracts between them (e.g. convertible note, equity deals, etc.). We also explore latest developments in entrepreneurial finance in more depth (e.g. crowdfunding, venture studios). Also, we'll explore the basics of corporate governance important for startups (i.e. ownership, vesting schedule, control, and legal structure).

From the professional investors angle, we will be discussing tools and concepts as well as evidence and metrics that are essential when assessing startups viability and profitability at different stages. We will go in more depth with techniques used to evaluate startups (i.e. discounted cash flow, real options, comparables, etc.).

Lastly, we view the startup financing from the point of view of public and social impact investors and policy-makers that want to spur entrepreneurship and innovation through financing deep technology startups, and discuss major challenges in financing ventures with long and uncertain R&D, and the macroenvironments effect on startup financing.

The class lies at the intersection of academic research and insights from practice. The course is especially suitable for master students that are interested in (or in the process of) starting or joining a technology startup, as well as for those who are curious about the process and challenges of technology venture and innovation financing. The course is highly recommended for students who are considering developing a master thesis in this area.