Financial Management for Entrepreneurs

Course formerly known as FINANCE 373 Entrepreneurial Finance. The course provides future CEOs and CFOs with the necessary tools for successfully managing financial aspects of entrepreneurial ventures. We cover topics related to both fundraising and ongoing capital management in startups, ranging from early to late stages. We analyze the incentives of all parties in major financial transactions of startups: founders, employees, angels, VCs, corporate investors and public markets. In addition, we will look at issues of financial management such as KPIs, dashboards, financial reporting and hiring a CFO.The pedagogy takes a two-pronged approach: First, we develop tools and concepts of entrepreneurial finance and accounting related to modeling, valuation, control, and investment decisions within an entrepreneurial context. Second, we use cases with firms at different stages of their life cycles from initial angel or venture capital investments through exit decisions, in order to see the issues that arise when these principles are applied in practice. In both of these modalities we will also explore the best practices and challenges of financial reporting to key investor constituencies, and how investors will react to how financial metrics are reported.In some cases we show the viewpoint of the entrepreneur and in others the perspective of the investor. After all, as an entrepreneur, one cannot negotiate effectively without understanding an investor's motivations. Conversely, an investor cannot evaluate a potential investment opportunity without appreciating the entrepreneur's perspective and incentives.