FINS3623 Venture Capital - 2020

Term 3
6 Units of Credit
Banking & Finance
This course outline is for the current semester. To view outlines from other years and/or semesters, visit the archives

1. Course Details

Summary of Course

​This course examines venture capital and private equity investments. In particular, it focuses on issues surrounding the funding of entrepreneurial firms that are financed by venture capital or private equity funds. The course departs from conventional investment approaches that examine risk and return of publicly listed securities, which have previously been covered by your earlier finance courses and analyses issues associated with financing growing, innovation intensive private businesses.

Teaching Times and Locations

Please note that teaching times and locations are subject to change. Students are strongly advised to refer to the Class Timetable website for the most up-to-date teaching times and locations.

View course timetable

Course Policies & Support

Course Aims and Relationship to Other Courses

​​This course covers the theory and practice of venture capital financing of entrepreneurial firms. Topics to be discussed include, but are not limited to, the following areas:

  1. The venture capital industry in Australia (and other countries), and other sources of funds for financing new ventures (including angel investors, banks and other institutions)
  2. Venture fundraising and characteristics of venture capital firms. In particular, Limited Partnership structures and corporate venture capital
  3. Characteristics of entrepreneurial ventures at different stages of development including: (a) Seed, Start-up, (b) Expansion, Mezzanine, (c) Buyout, Turnaround
  4. The structure of financial contracts. This includes staging and syndication of deals, forms of finance (debt, convertible debt, preferred equity, convertible preferred equity, common equity, warrants, and combinations of these instruments), board representation, restrictive covenants and confidentiality agreements, and legal and institutional barriers to efficient venture capital financial contracting
  5. Exiting an investment through (a) Initial Public Offerings (IPOs), (b) Mergers / Strategic Acquisitions, (c) Secondary Sales, Buybacks, Write-offs, (d) Partial exits
  6. Various entrepreneurial firm valuation techniques including (a) Traditional valuation methods, (b) Valuation of private firms
  7. Buyouts and Going-Private Transactions including (a) Buyout industry in Australia, (b) Special features of buyouts transactions, (c) Valuation of buyout deals
  8. Venture Capital and Private Equity Investments in an International Context

2. Staff Contact Details

Position Title Name Email Location Phone Consultation Times
Course administratorAProfPeter Kien Pham
02 9385 5889Monday 4pm to 5pm
LecturerMrNicholas Turner
Wed 9 - 10
LecturerMrSimon Uzcilas

About the teaching team:

The lecturers are Nicholas Turner and Simon Uzcilas. See the Course Schedule section for their lectures' schedules and contents.

Nick Turner is a sessional academic and PhD candidate at UNSW. His research is focused on venture capital/private equity and M&A. Prior to working at UNSW, Nick worked in M&A as both an investment banker and as part of a corporate M&A team.

Simon Uzcilas is a director of Four Hats Capital - a Sydney based asset manager (  He brings to the course 25 years of investment experience in private companies (venture & growth) and managing funds for Australia’s leading institutions.

Peter Pham is your first point of contact if you have questions about any aspects of the course, including administration, contents, and assessments. You can also directly contact the lecturer teaching a particular week if you have questions on the specific contents of the week.

3. Learning and Teaching Activities

Approach to Learning and Teaching in the Course

​Lectures are conducted in 2-hour blocks, reinforced by a 1.5-hour tutorial per week. Both the lectures and tutorials are conducted online. Our default online platform is Collaborate, accessible through Moodle links. Our backup platform is Zoom (with links posted on Moodle if required)

The 2-hour lectures are intended to impart the necessary information for students to gain an adequate understanding of various theories, facts and phenomena related to venture capital and private equity. The tutorials will focus on the practical application of what is taught in the lectures by working through cases with accompanying discussion and questions.

Students are required to do the required readings before attending the lecture as well as reading the prescribed case prior to attending the tutorials. The tutorial program can be downloaded from Moodle. The questions that accompany the cases will be released one week before the tutorial. For each case study, students should prepare a set of notes on the questions. These will facilitate their in-class discussion of the case, which constitutes an assessment activity.

Consultation hours: students are encouraged to fully utilise the available consultation hours (posted on the Moodle page) to best prepare the cases, assignment reports and to review for the quiz and exam. For the assignment, the tutors will provide extra assistance in terms of clarifying the issues and methodologies related to the investment evaluation report.

Learning Activities and Teaching Strategies

​As an elective course at the end of your degree program, independent learning from students is expected. The course will draw on concepts, issues and practical information from various readings and cases. Students are therefore required to read and understand these materials and their relevance. Students are also expected to extend and apply their knowledge acquired in the lecture to current issues discussed in the financial press.

A large part of the course and its assessment components requires students to critically analyse and apply lecture materials to real-life cases. This reflects the skills required to work in today’s financial services environment. Part of the course will allow the students to practice their analytical and problem-solving skills, and then receive appropriate feedback. It is essential that students utilise this time to actively participate in the discussion of the prescribed materials and raise questions with the tutor regarding areas where further clarifications and discussion are necessary.

5. Course Resources


The cases will be made available online through Moodle. It is your responsibility to either print them out or have them available in class in soft copy.

Prescribed Readings:

Articles posted on Moodle are considered required readings and will be examinable. These materials provide the core theories of the course and will also help reinforce the lecture contents

Recommended Readings

In addition, there are two supplementary texts:

Josh Lerner, Ann Leamon and Felda Hardymon, Venture Capital, Private Equity and the Financing of Entrepreneurship, Wiley Publishing.

Andrew Metrick and Ayako Yasuda, Venture Capital and the Finance of Innovation, 2nd Edition, John Wiley and Sons, Inc., 2010

The purchase of these texts is not compulsory. However, this text contains useful materials which can be used for assignment and exam preparation purposes. The library should have several copies of these books.

6. Course Evaluation & Development

Feedback is regularly sought from students and continual improvements are made based on this feedback. At the end of this course, you will be asked to complete the myExperience survey, which provides a key source of student evaluative feedback. Your input into this quality enhancement process is extremely valuable in assisting us to meet the needs of our students and provide an effective and enriching learning experience. The results of all surveys are carefully considered and do lead to action towards enhancing educational quality.

7. Course Schedule

Note: for more information on the UNSW academic calendar and key dates including study period, exam, supplementary exam and result release, please visit:
Week Activity Topic Assessment/Other
Week 1 - Introduction: 14 September

Introduction into Venture Capital and Private Equity

Venture Capital Cycle

The Capital Gap

State of the Australian VC/PE Industry

Lecturer: Simon Uzcilas

Week 2 - Private Financing: 21 September

Sources of Private Firm Financing

Characteristics of Firms Receiving VC Investments


Lecturer: Simon Uzcilas

Week 3 - Fund Structure: 28 September

Limited Partnership Structure of VC/PE Funds

Fund Cash Flows, Incentives and Performance Measures

Corporate VCs



Lecturer: Nicholas Turner

Week 4 - Investment 1: 5 October

Information and Contracting Problems in VC financing

Due Diligence

Staging and Syndication

Lecturer: Nicholas Turner

Week 5 - Investment 2: 12 October

VC Financing Instruments

VC Financing Terms

Concepts: Pre- and Post-Money Valuation

Lecturer: Nicholas Turner

Week 6: 19 October

Flexi-week: no lectures/tutorials

Week 7 - Valuation: 26 October

Valuation based on Comparable Firms

Cash-flows based Valuation

Liquidity adjustments

Lecturer: Nicholas Turner

Week 8 - Buyouts 1: 2 November

Debt in PE Financing

Introducing the Simulation Activity

Lecturer: Nicholas Turner

Week 9 - Buyouts 2: 9 November

Structures of Leveraged Buyouts

Valuation of Buyouts


Lecturer: Nicholas Turner

Week 10 - Exits: 16 November

Forms of VC/PE Exits

Initial Public Offerings: Mechanisms and Issues

Lecturer: Simon Uzcilas

8. Policies and Support

Information about UNSW Business School protocols, University policies, student responsibilities and education quality and support.

Program Learning Outcomes

The Business School places knowledge and capabilities at the core of its curriculum via seven Program Learning Outcomes (PLOs). These PLOs are systematically embedded and developed across the duration of all coursework programs in the Business School.

PLOs embody the knowledge, skills and capabilities that are taught, practised and assessed within each Business School program. They articulate what you should know and be able to do upon successful completion of your degree.

Upon graduation, you should have a high level of specialised business knowledge and capacity for responsible business thinking, underpinned by ethical professional practice. You should be able to harness, manage and communicate business information effectively and work collaboratively with others. You should be an experienced problem-solver and critical thinker, with a global perspective, cultural competence and the potential for innovative leadership.

All UNSW programs and courses are designed to assess the attainment of program and/or course level learning outcomes, as required by the UNSW Assessment Design Procedure. It is important that you become familiar with the Business School PLOs, as they constitute the framework which informs and shapes the components and assessments of the courses within your program of study.

PLO 1: Business knowledge

Students will make informed and effective selection and application of knowledge in a discipline or profession, in the contexts of local and global business.

PLO 2: Problem solving

Students will define and address business problems, and propose effective evidence-based solutions, through the application of rigorous analysis and critical thinking.

PLO 3: Business communication

Students will harness, manage and communicate business information effectively using multiple forms of communication across different channels.

PLO 4: Teamwork

Students will interact and collaborate effectively with others to achieve a common business purpose or fulfil a common business project, and reflect critically on the process and the outcomes.

PLO 5: Responsible business practice

Students will develop and be committed to responsible business thinking and approaches, which are underpinned by ethical professional practice and sustainability considerations.

PLO 6: Global and cultural competence

Students will be aware of business systems in the wider world and actively committed to recognise and respect the cultural norms, beliefs and values of others, and will apply this knowledge to interact, communicate and work effectively in diverse environments.

PLO 7: Leadership development

Students will develop the capacity to take initiative, encourage forward thinking and bring about innovation, while effectively influencing others to achieve desired results.

These PLOs relate to undergraduate and postgraduate coursework programs.  Separate PLOs for honours and postgraduate research programs are included under 'Related Documents'.

Business School course outlines provide detailed information for students on how the course learning outcomes, learning activities, and assessment/s contribute to the development of Program Learning Outcomes.



UNSW Graduate Capabilities

The Business School PLOs also incorporate UNSW graduate capabilities, a set of generic abilities and skills that all students are expected to achieve by graduation. These capabilities articulate the University’s institutional values, as well as future employer expectations.

UNSW Graduate CapabilitiesBusiness School PLOs
Scholars capable of independent and collaborative enquiry, rigorous in their analysis, critique and reflection, and able to innovate by applying their knowledge and skills to the solution of novel as well as routine problems.
  • PLO 1: Business knowledge
  • PLO 2: Problem solving
  • PLO 3: Business communication
  • PLO 4: Teamwork
  • PLO 7: Leadership development

Entrepreneurial leaders capable of initiating and embracing innovation and change, as well as engaging and enabling others to contribute to change
  • PLO 1: Business knowledge
  • PLO 2: Problem solving
  • PLO 3: Business communication
  • PLO 4: Teamwork
  • PLO 6: Global and cultural competence
  • PLO 7: Leadership development

Professionals capable of ethical, self-directed practice and independent lifelong learning
  • PLO 1: Business knowledge
  • PLO 2: Problem solving
  • PLO 3: Business communication
  • PLO 5: Responsible business practice

Global citizens who are culturally adept and capable of respecting diversity and acting in a socially just and responsible way.
  • PLO 1: Business knowledge
  • PLO 2: Problem solving
  • PLO 3: Business communication
  • PLO 4: Teamwork
  • PLO 5: Responsible business practice
  • PLO 6: Global and cultural competence

While our programs are designed to provide coverage of all PLOs and graduate capabilities, they also provide you with a great deal of choice and flexibility.  The Business School strongly advises you to choose a range of courses that assist your development against the seven PLOs and four graduate capabilities, and to keep a record of your achievements as part of your portfolio. You can use a portfolio as evidence in employment applications as well as a reference for work or further study. For support with selecting your courses contact the UNSW Business School Student Centre.

Academic Integrity and Plagiarism

Academic Integrity is honest and responsible scholarship. This form of ethical scholarship is highly valued at UNSW. Terms like Academic Integrity, misconduct, referencing, conventions, plagiarism, academic practices, citations and evidence based learning are all considered basic concepts that successful university students understand. Learning how to communicate original ideas, refer sources, work independently, and report results accurately and honestly are skills that you will be able to carry beyond your studies.

The definition of academic misconduct is broad. It covers practices such as cheating, copying and using another person’s work without appropriate acknowledgement. Incidents of academic misconduct may have serious consequences for students.


UNSW regards plagiarism as a form of academic misconduct. UNSW has very strict rules regarding plagiarism. Plagiarism at UNSW is using the words or ideas of others and passing them off as your own. All Schools in the Business School have a Student Ethics Officer who will investigate incidents of plagiarism and may result in a student’s name being placed on the Plagiarism and Student Misconduct Registers.

Below are examples of plagiarism including self-plagiarism:

Copying: Using the same or very similar words to the original text or idea without acknowledging the source or using quotation marks. This includes copying materials, ideas or concepts from a book, article, report or other written document, presentation, composition, artwork, design, drawing, circuitry, computer program or software, website, internet, other electronic resource, or another person's assignment, without appropriate acknowledgement of authorship.

Inappropriate Paraphrasing: Changing a few words and phrases while mostly retaining the original structure and/or progression of ideas of the original, and information without acknowledgement. This also applies in presentations where someone paraphrases another’s ideas or words without credit and to piecing together quotes and paraphrases into a new whole, without appropriate referencing.

Collusion: Presenting work as independent work when it has been produced in whole or part in collusion with other people. Collusion includes:

  • Students providing their work to another student before the due date, or for the purpose of them plagiarising at any time
  • Paying another person to perform an academic task and passing it off as your own
  • Stealing or acquiring another person’s academic work and copying it
  • Offering to complete another person’s work or seeking payment for completing academic work

Collusion should not be confused with academic collaboration (i.e., shared contribution towards a group task).

Inappropriate Citation: Citing sources which have not been read, without acknowledging the 'secondary' source from which knowledge of them has been obtained.

Self-Plagiarism: ‘Self-plagiarism’ occurs where an author republishes their own previously written work and presents it as new findings without referencing the earlier work, either in its entirety or partially. Self-plagiarism is also referred to as 'recycling', 'duplication', or 'multiple submissions of research findings' without disclosure. In the student context, self-plagiarism includes re-using parts of, or all of, a body of work that has already been submitted for assessment without proper citation.

To see if you understand plagiarism, do this short quiz:


The University also regards cheating as a form of academic misconduct. Cheating is knowingly submitting the work of others as their own and includes contract cheating (work produced by an external agent or third party that is submitted under the pretences of being a student’s original piece of work). Cheating is not acceptable at UNSW.

If you need to revise or clarify any terms associated with academic integrity you should explore the 'Working with Academic Integrity' self-paced lessons available at:

For UNSW policies, penalties, and information to help you avoid plagiarism see: as well as the guidelines in the online ELISE tutorials for all new UNSW students: For information on student conduct see:

For information on how to acknowledge your sources and reference correctly, see: If you are unsure what referencing style to use in this course, you should ask the lecturer in charge.

Student Responsibilities and Conduct

​Students are expected to be familiar with and adhere to university policies in relation to class attendance and general conduct and behaviour, including maintaining a safe, respectful environment; and to understand their obligations in relation to workload, assessment and keeping informed.

Information and policies on these topics can be found on the 'Managing your Program' website.


It is expected that you will spend at least ten to twelve hours per week studying for a course except for Summer Term courses which have a minimum weekly workload of twenty to twenty four hours. This time should be made up of reading, research, working on exercises and problems, online activities and attending classes. In periods where you need to complete assignments or prepare for examinations, the workload may be greater. Over-commitment has been a cause of failure for many students. You should take the required workload into account when planning how to balance study with employment and other activities.

We strongly encourage you to connect with your Moodle course websites in the first week of semester. Local and international research indicates that students who engage early and often with their course website are more likely to pass their course.

View more information on expected workload


Your regular and punctual attendance at lectures and seminars or in online learning activities is expected in this course. The Business School reserves the right to refuse final assessment to those students who attend less than 80% of scheduled classes where attendance and participation is required as part of the learning process (e.g., tutorials, flipped classroom sessions, seminars, labs, etc.).

View more information on attendance

General Conduct and Behaviour

You are expected to conduct yourself with consideration and respect for the needs of your fellow students and teaching staff. Conduct which unduly disrupts or interferes with a class, such as ringing or talking on mobile phones, is not acceptable and students may be asked to leave the class.

View more information on student conduct

Health and Safety

UNSW Policy requires each person to work safely and responsibly, in order to avoid personal injury and to protect the safety of others.

View more information on Health and Safety

Keeping Informed

You should take note of all announcements made in lectures, tutorials or on the course web site. From time to time, the University will send important announcements to your university e-mail address without providing you with a paper copy. You will be deemed to have received this information. It is also your responsibility to keep the University informed of all changes to your contact details.

Student Support and Resources

​The University and the Business School provide a wide range of support services and resources for students, including:

Business School EQS Consultation Program
The Consultation Program offers academic writing, literacy and numeracy consultations, study skills, exam preparation for Business students. Services include workshops, online resources, individual and group consultations. 
Level 1, Room 1035, Quadrangle Building.
02 9385 4508

Communication Resources
The Business School Communication and Academic Support programs provide online modules, communication workshops and additional online resources to assist you in developing your academic writing.

Business School Student Centre
The Business School Student Centre provides advice and direction on all aspects of admission, enrolment and graduation.
Level 1, Room 1028 in the Quadrangle Building
02 9385 3189

UNSW Learning & Careers Hub
The UNSW Learning & Careers Hub provides academic skills and careers support services—including workshops, individual consultations and a range of online resources—for all UNSW students. See their website for details.
Lower Ground Floor, North Wing Chancellery Building.
02 9385 2060

Student Support Advisors
Student Support Advisors work with all students to promote the development of skills needed to succeed at university, whilst also providing personal support throughout the process.
John Goodsell Building, Ground Floor.
02 9385 4734

International Student Support
The International Student Experience Unit (ISEU) is the first point of contact for international students. ISEU staff are always here to help with personalised advice and information about all aspects of university life and life in Australia.
Advisors can support you with your student visa, health and wellbeing, making friends, accommodation and academic performance.
02 9385 4734

Equitable Learning Services
Equitable Learning Services (formerly Disability Support Services) is a free and confidential service that provides practical support to ensure that your health condition doesn't adversely affect your studies. Register with the service to receive educational adjustments.
Ground Floor, John Goodsell Building.
02 9385 4734

UNSW Counselling and Psychological Services
Provides support and services if you need help with your personal life, getting your academic life back on track or just want to know how to stay safe, including free, confidential counselling.
Level 2, East Wing, Quadrangle Building.
02 9385 5418

Library services and facilities for students
The UNSW Library offers a range of collections, services and facilities both on-campus and online.
Main Library, F21.
02 9385 2650

Moodle eLearning Support
Moodle is the University’s learning management system. You should ensure that you log into Moodle regularly.
02 9385 3331

UNSW IT provides support and services for students such as password access, email services, wireless services and technical support.
UNSW Library Annexe (Ground floor).
02 9385 1333

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