Course Code: GSP220
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Synopsis

This course provides an exploration of how startups are valued and financed. It introduces students to key concepts such as discounted cash flow (DCF), the venture capital (VC) method, and market comparables, while also emphasizing real-world tools like term sheets, cap tables, and financing structures. The course highlights the interconnectedness between business models, investor expectations, and funding strategies, and their collective role in driving startup success. Students will learn how startup valuation is influenced by financial forecasts, market dynamics, and founder decisions, and how to assess the readiness of a venture for external funding. They will also examine the trade-offs between different sources of capital, from bootstrapping to angel investments and venture capital, and how each shapes a startup’s growth trajectory. Through the use of case examples and simulations, students will gain practical skills in performing startup valuations, interpreting investment terms, and understanding the strategic implications of financing choices. By the end of the course, students will be able to understand the key principles of startup valuation, critically evaluate different financing options, and apply relevant tools and frameworks to support early-stage financial decisions.
Level: 2
Presentation Pattern: EVERY REGULAR SEMESTER

Topics

  • Discounted Cash Flow (DCF) Valuation and Time Value of Money
  • Building Financial Models for Startup Valuation
  • High-Growth Startup Adjustments and Risk Calibration
  • Using Comparables in Startup Valuation
  • VC Method of Startup Valuation
  • Term Sheets and Key Clauses
  • Capitalization Tables and Ownership Structures
  • Startup Financing Instruments
  • Venture Capital Lifecycle and Exit Strategies
  • Angel Investors and Early-Stage Capital
  • Crowdfunding Models and Mechanics
  • Fintech Disruptions in Startup Financing

Learning Outcome

  • Explain the startup funding lifecycle and the principles of early-stage investing.
  • Demonstrate understanding of various startup valuation methods and their applications.
  • Describe key financing instruments, and how they affect startup ownership and control.
  • Apply valuation techniques to assess startup value in different scenarios.
  • Analyze and interpret term sheets, cap tables, and financing structures.
  • Examine startup funding strategies, including financing risks, founder dilution impacts, and exit dynamics