TECHCOMM 2003 - New Venture Finance

North Terrace Campus - Semester 2 - 2015

The aim of this course is to enable students from a variety of backgrounds to understand how new ventures obtain and manage finance. The knowledge learnt will enable students to plan, execute, and monitor a financial plan for a new venture, no matter whether this is in the context of a new business or in an existing organisation. This course covers the financial planning process; financial reports; sensitivity analysis; sources of finance; types of finance; innovation in the finance markets; applicability of different finances to entrepreneurship.

  • General Course Information
    Course Details
    Course Code TECHCOMM 2003
    Course New Venture Finance
    Coordinating Unit Entrepreneurship, Commercialisation & Innov Centre
    Term Semester 2
    Level Undergraduate
    Location/s North Terrace Campus
    Units 3
    Contact Up to 36 hours
    Available for Study Abroad and Exchange Y
    Course Description The aim of this course is to enable students from a variety of backgrounds to understand how new ventures obtain and manage finance. The knowledge learnt will enable students to plan, execute, and monitor a financial plan for a new venture, no matter whether this is in the context of a new business or in an existing organisation. This course covers the financial planning process; financial reports; sensitivity analysis; sources of finance; types of finance; innovation in the finance markets; applicability of different finances to entrepreneurship.
    Course Staff

    Course Coordinator: Remco Marcelis

    Teaching staff

    Semester 2
    Name:
    Remco Marcelis

    Short Bio:
    Remco is a virtual Chief Financial Officer (vCFO) experienced in venture capital. Passionate about growing successful sustainable businesses, Remco is interested in startups that disrupt the status quo, digital health and bitcoin’s potential in facilitating international payments.

    Remco is a seasoned CFO/COO who has worked with entrepreneurial technology/cleantech businesses for the last 10 years, preceded by 4 years in venture capital (raising and investing nearly $40 million) and 10 years working with multinational management consulting/IT services companies. He has a strong background in inspiring and managing teams, coupled with innovative use of technology to drive improvements through all areas of business.

    His career combines personal experience in his own start-ups, managing meteoric growth in a successful media company, a mobile App company and an early stage climate change company. His venture capital experience included 20 early stage investments. His career was grounded with management consulting and IT services experience with Accenture, PricewaterhouseCoopers and EDS. This real-life experience has been rounded out with an advanced MBA degree from the University of Adelaide, graduate of the Institute of Company Directors, Foundations in Venture Capital and courses through the Financial Services Institute of Australasia (FINSIA).

    Remco provides his virtual CFO services under the Virtuosity umbrella. www.vcfo.com.au

    Email: remco@marcelis.com.au  

    Phone: 0400 474 228

    LinkedIn: www.linkedin.com/in/remcomarcelis

    Twitter: @MarcelisRemco
    Course Timetable

    The full timetable of all activities for this course can be accessed from Course Planner.

    Opening intensive:
    Monday 27th, Tuesday 28th and Wednesday 29th July 2015
    9am to 6pm
    Napier 210 Tutorial room

    Closing intensive:
    Monday 24th, Tuesday 25th and Wednesday 26th August 2015
    9am to 6pm
    Napier 210 Tutorial room
  • Learning Outcomes
    Course Learning Outcomes
    1 The keys financial considerations to be considered when launching a new venture
    2 The Lean Startup principles as an approach for focusing when exploring if and how to commence a new venture
    3 Introduction to the Business Model Canvas to map out a new venture’s business operating model
    4 Understanding the role and type of metrics to be used when building and running a new venture
    5 How to build a robust, believe financial model that reflects a new venture’s growth plans
    6 Understanding the possible Sources of Finance to support the growing business
    7 An introduction to key concepts in Venture Capital
    8 The practical financial and operational aspects of establishing and running a business
    University Graduate Attributes

    This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:

    University Graduate Attribute Course Learning Outcome(s)
    Knowledge and understanding of the content and techniques of a chosen discipline at advanced levels that are internationally recognised. 1,2,5,6,7
    The ability to locate, analyse, evaluate and synthesise information from a wide variety of sources in a planned and timely manner. 2,3,6
    An ability to apply effective, creative and innovative solutions, both independently and cooperatively, to current and future problems. 3
    Skills of a high order in interpersonal understanding, teamwork and communication. 3,5
    A proficiency in the appropriate use of contemporary technologies. 2-5
    A commitment to continuous learning and the capacity to maintain intellectual curiosity throughout life. 3,8
    A commitment to the highest standards of professional endeavour and the ability to take a leadership role in the community. 7
    An awareness of ethical, social and cultural issues within a global context and their importance in the exercise of professional skills and responsibilities. 1,3
  • Learning Resources
    Required Resources
    No textbook required

    The following readings will be made available through MyUni:

    BRW Magazine, 11 reasons why now is the right time to become an entrepreneur

    Gross, Bill, The Start-Up Factory

    Bhide, Amad The Questions Every Entrepreneur Must Answer in The Entrepreneurial Venture pg 65

    Blank, Steve Why the Lean Startup Changes Everything Harvard Business Review
    Recommended Resources
    There is a wide range of material on the lean startup movement and venture capital. The following provides some additional reading guidance if you are interested in reading further on the topic.

    A key resource for more information on the Lean Start-up methodology and business model generation is the website from the “founder” of the Lean Startup movement, Steve Blank.
    http://steveblank.com

    Note in particular, the recommended books listed here:
    http://steveblank.com/books-for-startups/  

    A couple of the key foundational texts are:

    Blank, Steve. The Start-Up Owners Manual. K & S Ranch; (March 1, 2012)

    Osterwalder, Alexander. Business Model Generation Wiley; (July 13, 2010)

    Reis, Eric. The Lean Startup Crown Business (September 13, 2011)

    Mayura, Ash, Running Lean: Iterate from Plan A to a Plan That Works O'Reilly Media; 2 edition (March 6, 2012)

    Feld, Brad and Mendelson, Jason. Venture Deals: Be Smarter than your Lawyer and Venture Capitalist Wiley; 1 edition (August 2, 2011)


    Library Resources
    The University of Adelaide’s Barr Smith Library provides a range of learning resources including texts, journals, periodicals, magazines, and access to online databases and information services. It also offers a virtual library which is accessible via the University’s website. The University Library web page is: http://www.adelaide.edu.au/library/ 
    From this link, you are able to access the Library's electronic resources.
    Online Learning
    MyUni is the University of Adelaide's online learning environment. It is used to support traditional face-to-face lectures, tutorials and workshops at the University. MyUni provides access to various features including announcements, course materials, discussion boards and assessments for each online course of study (see: https://myuni.adelaide.edu.au)
  • Learning & Teaching Activities
    Learning & Teaching Modes
    This course is offered in blended learning mode with the face-to-face component offered as intensives.
    Workload

    The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

    As a guide, a 3 unit course comprises a total of 156 hours work (this includes face-to-face contact, any online components, and self directed study).
    Learning Activities Summary

    This is a draft schedule and session dates are a guide only. The timetable may be changed during the course delivery if necessary.

    Intensive day
    Content Activities
    Opening Intensive -Day 1 to Day 3
    Day 1 1. Introduction (LEARNING)
    Readings:1.1. BRW Magazine, 11 reasons why now is the right time tobecome an entrepreneur1.2. Bill Gross, The Start-Up Factory1.3. Amad Bhide, The Questions Every Entrepreneur MustAnswer

    Activity 1.1.1 (T): Course expectations (TEAM)

    Activity 1.1.2: Your motivations, Your Idea (INDIVIDUAL)
    2. Lean Startup (LEARNING)
    Readings:2.1.1. Steve Blank, Why the Lean Startup changeseverything
    Activity 1.2.1: Lean Startup Foundations (INDIVIDUAL)
    3. Business Model Canvas (LEARNING)
    Readings:None – class slides
    Activity 1.3.1: Business Model Canvas Foundations(INDIVIDUAL)
    4. Business Model Canvas (ACTIVITY)
    Readings:None – class slides
    Activity 1.4.1: Business Model Canvas Activity (TEAM)
    Day 2 1. Revenue Model (LEARNING)
    Readings:None – class slides
    Activity 2.1.1: Revenue Model Foundations(INDIVIDUAL)
    2. Revenue Model (ACTIVITY)
    Readings:None – class slides
    Activity 2.2.1: Revenue Model Activity (TEAM)
    3. Resources & Costs (LEARNING)
    Readings:None – class slides
    Activity 2.3.1: Resources & Costs Foundations(INDIVIDUAL)
    4. Metrics (LEARNING)
    Readings:None – class slides
    Activity 2.4.1: Metric Foundations (INDIVIDUAL)
    Day 3 1. Financial Statement foundations (LEARNING)
    Readings:None – class slides
    Activity 3.1.1: Financial Statement foundations(INDIVIDUAL)Activity 3.1.2: Financial Statement actvity (TEAM)
    2. Revenue Forecasting (LEARNING)
    Readings:None – class slides
    Activity 3.2.1: Revenue forecating foundations(INDIVIDUAL)Activity 3.2.2: revenue forecasting examples (TEAM)
    3. Expense Forecasting (LEARNING)
    Readings:None – class slides
    Activity 3.3.1: Expense Forecasting foundations(INDIVIDUAL)Activity 3.3.2: Break even actvity (INDIVIDUAL)
    4. Introduction to the Financial Model (LEARNING)
    Readings:None – class slides
    None – Questions will be taken regarding the financialmodel
    Closing intensive - Day 4 to Day 6
    Day 4 1. Sources of Funding Overview
    2. Loan Funding
    3. Accelerators
    4. Crowdfunding
    Day 5 1. Angel Investing
    2. Venture Capital 101
    3. VC in Australia
    4. Pitch Practice
    Day 6 1. Growing and Managing Your Business
    2. Exiting Your Business
    Session Types: (L) = Learning / tutorial session (A) = Activity sessionActivity Types: (I) = Individual, (T) = Team
    Specific Course Requirements
    For each of the activities list below, please refer to the accompanying ActivityWorksheets.

    DAY 1

    1.1 Day 1, Session 1: Introductions to each other and the course (LEARNING)
    Learning objectives
    You will be allocated into a team for group work, and introduced to the lecturer and eachother students. We will look at your expectations for the course and provide an overviewof the whole course. We will explore motivations for starting a New Venture and gain anunderstanding of any particular entrepreneurial idea people are (aiming to be) workingon.

    Activity 1.1.1: Course expectations (TEAM)
    Discuss your hopes for course, what you want to get out of it. Write a list of points, andthen compare it with other teams members hopes and expectations. The lecturer willthen comment on these objectives and lead into discussion on course outline.

    Activity 1.1.2: Your motivations, Your Idea (INDIVIDUAL)
    Reflect on your own motivations for starting a new venture, refine and be ready topresent any ideas you are working on.

    1.2 Day 1, Session 2: Introduction to the Lean Startup method (LEARNING)
    Learning objectives
    We will provide an overview of the lean startup methodology as a backdrop tounderstanding the process that New Ventures go through that need to be supportedfinancially.

    Activity 1.2.1: Lean Startup Foundations (INDIVIDUAL)
    Review your understanding of the underlying principles of the lean startup methodology.

    1.3 Day 1, Session 3: Introduction to the Business Model Canvas (LEARNING)
    Learning objectives
    We will provide an overview of the business model canvas. The business model canvasis an easy to use inter-connected graphical representation of the key building blocks thatneed to be in place for a New Venture. We will walk through the process of completing acanvas thereby providing insight into the thought processes that go into designing abusiness’ operating model.

    Activity 1.3.1: Business Model Canvas Foundations (INDIVIDUAL)
    Review your understanding of the underlying principles of the lean canvas.1.4 Day 1, Session 4: Business Model Canvas Activity (ACTIVITY)

    Learning objectives
    This session aims to have you walk through exactly the kind of planning session(s) thata New Venture needs to go though when figuring out the different aspects of itsoperating and go-to-market model. The class will split into teams to get hands-on with anominated example busineses to come up with a preliminary business model canvas.

    Activity 1.4.1: Business Model Canvas Activity (TEAM)
    Each team will produce a business model canvas for its assigned business and be prepared to present it to the class. (Refer Activity Worksheet for a background on eachbusiness).


    DAY 2

    2.1 Day 2, Session 1: Revenue Model (LEARNING)
    Learning objectives
    At the core of every business is its ability to generate revenue. We will provide anoverview of a graphical method of describing a business’ revenue model. We will walkthrough this to provide insight into the thought processes that go into designing abusiness’ revenue model.

    Activity 2.1.1: Revenue Model Foundations (INDIVIDUAL)
    Review your understanding of the key elements of revenue models.

    2.2 Day 2, Session 2: Revenue Model Activity (ACTIVITY)
    Learning objectives
    In this session the class will split back into teams to get hands-on with a nominatedexample busineses to come up with a preliminary revenue model.

    Activity 2.2.1: Business Model Canvas Activity (TEAM)
    Each team will produce a graphical description for its assigned business and beprepared to present it to the class. (Refer Activity Worksheet for a background on eachbusiness).

    2.3 Day 2, Session 3: Resources & Costs (LEARNING)
    Learning objectives
    Fundamental to running a sustainable business is an understanding of the underlyingcosts. This session will review the key resources needed for a New Venture, and thecosts that can be expected.

    Activity 2.3.1: Resources & Costs Foundations (INDIVIDUAL)
    Review your understanding of the underlying resource and cost elements within abusiness.

    2.3 Day 2, Session 4: Metrics (LEARNING)
    Learning objectives
    What gets measured, gets done as the saying goes. This sesion will look at the keymetrics that new venture should use to monitor their business and drive activity tosupport early growth.

    Activity 2.4.1: Metric Foundations (INDIVIDUAL)
    Review your understanding of the key types of metrics within a business.


    DAY 3

    3.1 Day 3, Session 1: Financial Statement foundations (LEARNING)
    Learning objectives
    A business owner needs to be able to understand and explain the key financial aspectsof a business. This session will introduce you to the accounting equation, and the keyfinancial statements – the Profit & Loss statement, and the Balance Sheet used topresent the performance of a business and its position.

    Activity 3.1.1: Financial Statement foundations (INDIVIDUAL)
    Review your understanding of the underlying key aspects of the function that financialstatements provide within a new venture.

    Activity 3.1.2: Financial Statement activity (TEAM)
    Using 2 public company examples, reproduce the accounting equation, and calculate theEBIT.

    3.2 Day 3, Session 2: Revenue Forecasting (LEARNING)
    Learning objectives
    Beyond business operting model, and the overall revenue model, in this session, we willdrill down further into the specific elements required to build a believable revenueforecast.

    Activity 3.2.1: Revenue Forecasting foundations (INDIVIDUAL)
    Review your understanding of the underlying key aspects that lead to creating abelievable revenue forecast.

    Activity 3.2.2: Revenue Forecasting examples (TEAM)
    Working together, undertake a number of example calculations to address variousaspects of revenue forecasting.

    3.3 Day 3, Session 3: Expense Forecasting (LEARNING)
    Learning objectives
    This session introduces the different types of expenses, and how those activities canvary depending on the business type and the level of business activity.

    Activity 3.3.1: Expense Forecasting foundations (INDIVIDUAL)
    Review your understanding of the underlying key aspects of producing an expenseforecast.

    Activity 3.3.2: Break even activity (TEAM)
    Working together, undertake a number of example calculations to understandbreakeven.

    3.4 Day 3, Session 4: The Financial Model (LEARNING)
    Learning objectives
    This session introduces all aspects of the financial model to be used for yourAssignment One.

    Activity 3.4.1: The Financial Model questions (INDIVIDUAL)
    Review your understanding of the underlying key aspects of producing an expenseforecast.


    DAY 4

    4.1 Day 4, Session 1: Stages of Growth and Sources of Finance (LEARNING)

    4.2 Day 4, Session 2: Bank Finance, Grants (Guest Lecturers: ANZ, CommercialisationAustralia)

    4.3 Day 4, Session 3: Crowdfunding (Guest Lecture:)

    4.4 Day 4, Session 4: Introduction to Angel Investing and Venture Capital (LEARNING)


    DAY 5
    5.1 Day 5, Session 1: Term Sheet Basics (LEARNING)

    5.1 Day 5, Session 2: Valuation and Negotiation (LEARNING)

    5.1 Day 5, Session 3: The Art of the Pitch (LEARNING)

    5.1 Day 5, Session 4: Develop and Present your Pitch (ACTIVITY)


    DAY 6

    6.1 Day 6, Session 1: Practical aspects of starting a new venture (LEARNING)

    6.1 Day 6, Session 2: Financial Management practices (LEARNING)

    6.1 Day 6, Session 3: Planning to exit your business (LEARNING)

    6.1 Day 6, Session 1: Practical aspects of starting a new venture (LEARNING)



  • Assessment

    The University's policy on Assessment for Coursework Programs is based on the following four principles:

    1. Assessment must encourage and reinforce learning.
    2. Assessment must enable robust and fair judgements about student performance.
    3. Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
    4. Assessment must maintain academic standards.

    Assessment Summary

    An overview of the course assessment appears in the following Table. Details appear in the following section:

    #AssessmentLengthWeightingDue DateLearning Outcomes
    1 Business Model development (INDIVIDUAL) 1500 words 20% see MyUni 2 - 3
    2 Development of a Financial Model (GROUP) N/A 30% see MyUni 5
    3 Exam take home exam 30% see MyUni 1 - 8
    4 Individual Participation and Group Contribution Course duration 20% ongoing 1 - 8
    Total 100%
    Assessment Related Requirements
    Students should attend all classes in order to pass the course. There is considerable experiential learning in workshops during the intensive classes that build your knowledge and thus enable you to be successful in this course.

    Course results are subject to moderation by the ECIC Board of Examiners
    Assessment Detail
    Assessment 1: Business Model development (INDIVIDUAL)
    Weighting: 20%
    Submission Details: Online through MyUni

    Task:
    Pick a business idea of your own. Prepare an Executive Summary of the idea along witha Business Model Canvas.Length and Presentation:This assignment will assess your understanding of the topics presented, discussed and/orapplied over days 1 and 2 of the course.Criteria by which your assessment will be marked:Will be provided by the lecturer in class.


    Assessment 2: Development of a Financial Model (GROUP)
    Weighting: 30%
    Submission Details: Online through MyUni

    Task:
    From the case you have been allocated as a team, build a financial model that bestpotrays a likely financial projection for the new venture. Particular attention will be paidto the robustness and validity of the assumptions that underpin your projections.Each member of the group will receive the mark that is awarded to the assessment.Therefore, it is important that a plan is developed for the tasks of researching and writingof the report.Length and Presentation:This assignment will assess your understanding of the topics presented, discussed and/orapplied over day 3 of the course.Criteria by which your assessment will be marked:Will be provided by the lecturer in class.


    Assessment 3: Take Home Exam (INDIVIDUAL)
    Weighting: 30%
    Submission Details: Online through MyUni

    Task:
    The take-home exam will be provided in the last lecture, and will contain questionsderived from the lectures and readings. Further details will be provided during the lastlecture.Length and Presentation:This assignment will assess your understanding of the topics presented, discussed and/orapplied over days 4-6 of the course.Criteria by which your assessment will be marked:Will be provided by the lecturer in class.


    Assessment 4: Individual Participation and Group Contribution
    Weighting:
    20%
    Due Date: Ongoing

    Task:
    To fully particpate in all individual and group tasks and activities throughout the duration ofthe course. Particiaption will be evaluated based on students’ preparedness, interaction, andin-class work (whole class and group work).Scope:This assessment will assess understanding of the course content presented and discussedthroughout days 1 to 6 of the course.Criteria by which your assessment will be marked:Will be provided by the lecturer in class.


    Submission
    All text based assignments must be submitted via MyUni.
    Please refer to step by step instructions: http://www.adelaide.edu.au/myuni/tutorials/files/AssignmentStudentSubmission.pdf

    There are a few points to note about the submission of assignments:
    • Assignment Submission:  Assignments should not be emailed to the instructor; they must be lodged via the MyUni Course site (unless specified to do both). Note that assignments may be processed via TURNITIN, which is an online plagiarism prevention tool.
    • Cover Sheet:  Please submit, separate to your assignment, the completed University of Adelaide Assessment Cover Sheet providing details of yourself and your team members (if applicable), your assignment, the course, date submitted, etc. as well as the declaration signed by you that this is your (your team’s) work.  Note that the declaration on any electronically submitted assignment will be deemed to have the same authority as a signed declaration.
    • Backup Copy of Assignments:  You are advised to keep a copy of your assignments in case the submitted copy goes missing.  Please ensure that all assignment pages are numbered. If your assignment contains confidential information, you should discuss any concerns with the Course Lecturer prior to submission.
    • Extensions of Time:  Any request for an extension of time for the submission of an assignment should be made well before the due date of the assignment to the Course Lecturer.  Normally, extensions will only be granted for a maximum of two weeks from the original assignment submission date.  Extensions will only be granted in cases of genuine extenuating circumstances and proof, such as a doctor’s certificate, may be required.
    • Failure to submit: Failure to submit an assignment on time or by the agreed extension deadline may result in penalties and may incur a fail grade.  Note that a late penalty of 5% of the total available marks for that assessment item will be incurred each day an assignment is handed in late (Unless otherwise stated in 'Assessment Related Requirements' or 'Assessment Detail' above) Assignments handed in after 14 days from the due submission date will fail even if a 100% mark is granted for the work.

    Resubmission & Remarking

    Resubmission of an assignment for remarking after reworking it to obtain a better mark will not normally be accepted.  Approval for resubmission will only be granted on medical or compassionate grounds.
    Course Grading

    Grades for your performance in this course will be awarded in accordance with the following scheme:

    M10 (Coursework Mark Scheme)
    Grade Mark Description
    FNS   Fail No Submission
    F 1-49 Fail
    P 50-64 Pass
    C 65-74 Credit
    D 75-84 Distinction
    HD 85-100 High Distinction
    CN   Continuing
    NFE   No Formal Examination
    RP   Result Pending

    Further details of the grades/results can be obtained from Examinations.

    Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.

    Final results for this course will be made available through Access Adelaide.

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    SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.

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