MNGT5322 Venture Capital Finance - 2022

Subject Code
MNGT5322
Study Level
Postgraduate
Commencing Term
Term 1
Total Units of Credit (UOC)
6
Delivery Mode
Term 1 (Session 3) 2022, Kensington
School
AGSM
This course outline is provided in advance of offering to guide student course selection. Please note that while accurate at time of publication, changes may be required prior to the start of the teaching session. To view other versions, visit the archives .

1. Course Details

Summary of Course

This course seeks to help students understand what venture capital is, what venture capitalists do, the way venture capital organisations work and why/how they play such a significant role in the economy. This course will alternatively take the perspectives of the venture capitalist 'general partner', investor into the venture capital fund 'limited partner' and that of the entrepreneur.

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.

This course is scheduled to run in face-to-face mode. At the time of publishing this Course Outline, it is not known whether this will be possible, due to COVID-19 restrictions. 

UNSW anticipates a fuller reactivation of campuses from the start of Term 1 2022, including a staged return of staff, research activity and on-campus events, subject to any public health orders in place.

While there is every intention to return to a greater balance of in-person learning in 2022, AGSM will continue to offer a variety of in-person and online modes. Further details on plans for 2022 will be communicated in due course.

https://www.covid-19.unsw.edu.au/return-campus-roadmap

View course timetable

Course Policies & Support

Course Aims and Relationship to Other Courses

Venture capital plays a critical role in shaping our economy and supporting innovation and economic growth. Yet very little is known and understood on how venture-capital firms operate.

This course is primarily geared towards students interested in corporate or entrepreneurial finance or entrepreneurship - specifically, students who wish to be working in venture capital or other private-equity organisations or alongside private equity and venture-capital investors, such as entrepreneurs, managers of firms financed by such investors, as investment bankers taking their firms public, or as fund managers investing in these funds.

The course essentially follows the 'venture capital cycle', focusing sequentially on the main financial and operational activities of venture capital: assessing opportunities, valuing ventures, negotiating and structuring investments, managing investments and exiting.

This course is an advanced corporate finance course and assumes a solid understanding of finance concepts.

The core Corporate Finance course or its equivalent is a prerequisite for studying this course.

Additional Course Details

3. Staff Contact Details

Position Name Email Location Phone Consultation Times
FacilitatorStephane Chatonsky
+61414748158Consultation slots will be available on 2 March, 23 March and 17 April 2022 from 4.30 to 5.30pm. Please email Nicole at nicole.sciacca@ivest.com.au to book a 10 minutes slot.

4. Learning and Teaching Activities

Approach to Learning and Teaching in the Course

Learning Activities and Teaching Strategies

We believe that what you get out of this course is eventually fairly correlated with what you put in. We also believe that true adult learning happens while doing; this is experiential learning.

Consequently, the class will evidence a mix of presentations, discussion, group and individual activities. Students should expect their viewpoints and experiences to be sought intensively during the class. In discussing topics in class, we place a high value on respect for one another's points of view. At the same time, there may be instances, in the interests of meeting course objectives in a timely manner, when we will be unable to solicit input from every student who has a viewpoint.

A few principles and beliefs underpin the design and delivery of this course:

  • it is about understanding, not memory, as what is memorised is easily forgotten whereas what is understood is in our mind forever
  • what is hard is finding the question; the answer on the other hand is often obvious
  • the real world is uncertain; few things are black or white - a management and finance course should reflect that reality
  • there is value in starting from first principles, not assuming anything.

Students bring important expectations to the class. You must expect to be prepared, enthusiastic, constructive and approachable. We all have our 'off days', but we will try to deliver on those expectations. Please contact the  Facilitator if they are not 'matching' these expectations. Obviously, we will have more latitude for accommodation/reconciliation/adjustment if difficulties are addressed early in the course.

Course Structure

Module 1: Overview of the VC industry

In Week 3, Yale University Investment Case will be discussed as part of Module 1. Come ready to discuss the case in class. Case can be prepared with your study group.

Questions for the Yale University Investment Case – February 2015 (Session 3, 2 March 2022)

  1. How has the Investment Office selected, compensated, and controlled private equity fund managers? What explains the differences between its strategy in private equity with that in other asset classes (e.g., real estate)?
  2. How has the Investment Office decided when to make private equity investments? What explains the differences between the strategy in private equity with that in other asset classes (e.g., real estate)?
  3. How has the Investment Office made international private equity investments? What explains the differences between the performance of its international and domestic private equity investments?
  4. How is the private equity industry changing? How could Swensen's private equity strategy go wrong?
  5. Should David Swensen shift his private equity strategy?

Module 2: Assessing investment opportunities

Module 3: Valuation in a VC Context

Module 4: Structuring the transaction and negotiating

Module 5: Portfolio management, value creation and exit

6. Course Resources

7. Course Evaluation & Development

Continual Course Improvement

AGSM courses are reviewed each time they run, with updated course outlines and assessment tasks developed.  

Additionally, the AGSM surveys students each time a course is offered. The data collected provides anonymous feedback from students on the quality of course content and materials, class facilitation, student support services and the program in general. This student feedback is considered during all course revisions. 

Student Response

Key comments in regard to potential improvements:

  1. Possibility to have pass/fail.
  2. Some of the questions directed to the class were ambiguous.
  3. Some of the readings are outdated.
  4. Some assignment questions need more clarification.
  5. Lots of readings.

Response to Student Feedback

  1. It is not possible to have pass/fail assessments in a graded course.
  2. I believe students should get used to ambiguity BUT I will try to clarify questions when I ask them during class.
  3. Eliminating outdated readings except those which I believe are still very relevant/exceptionally good with no particular more recent equivalent.
  4. Have added clarifications in the guidance provided.
  5. Will limit the number of readings.

8. Course Schedule

Week Activity Topic Detail/Engagement Assessment Task
Week 1 Session 1Course Introduction: Module 1: Overview of the VC industry

Readings as per Unit materials

Assessment 1 : Class Participation
Week 2 Session 2Module 1: Private equity as an asset class

Readings as per Unit materials

Assessment 1 : Class Participation
Assessment 4 : Quizzes and Short Problems
Week 3 Session 3Module 1: Private equity as an asset class (continued)

Readings as per Unit materials

Yale University Investment Case (Please read the case and prepare questions outlined in Course Structure)

Assessment 1 : Class Participation
Week 4 Session 4Module 2: Assessing investment opportunities

Readings as per Unit materials

For Assessment 2 'AudienceView' students will work on this assessment in their study group , which is due on Tuesday 22 March 2022 (Session 5, Week 6).

Assessment 1 : Class Participation
Assessment 4 : Quizzes and Short Problems
Week 5 Global Network Week
Week 6 Session 5Module 3: Valuation in a VC context

Readings as per Unit materials.

Assessment 2 'AudienceView' is due in this Week on Tuesday 22 March 2022.

Assessment 2 : Case Study - 'AudienceView'
Assessment 1 : Class Participation
Week 7 Session 6Module 3: Valuation in a VC context (continued)

Readings as per Unit materials

Assessment 3: The Venture Capital Method - Valuation Problem Set

Students will work on this assessment individually, which is due on Tuesday 26 April 2022 (Session 9, Week 11).

Assessment 1 : Class Participation
Week 8 Session 7Module 4: Structuring the transaction and negotiating

Readings as per Unit materials

Assessment 1 : Class Participation
Assessment 4 : Quizzes and Short Problems
Week 9 Session 8Module 4: Structuring the transaction and negotiating (continued)
Assessment 1 : Class Participation
Week 10 No class
Assessment 4 : Quizzes and Short Problems
Week 11 Sessions 9 and 10Module 5: Portfolio management, value creation and exit (Session 9)

Session 10: Course Conclusion

Readings as per Unit materials

Assessment 3 is due

Assessment 1 : Class Participation
Assessment 3 : The Venture Capital Method - Valuation Problem Set
Week 12 Last quiz of Assessment 4 is due
Assessment 4 : Quizzes and Short Problems

9. 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.

RELATED DOCUMENTS

 

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.

Plagiarism

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: https://student.unsw.edu.au/plagiarism-quiz

Cheating

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: https://student.unsw.edu.au/aim.

For UNSW policies, penalties, and information to help you avoid plagiarism see: https://student.unsw.edu.au/plagiarism as well as the guidelines in the online ELISE tutorials for all new UNSW students: http://subjectguides.library.unsw.edu.au/elise. For information on student conduct see: https://student.unsw.edu.au/conduct.

For information on how to acknowledge your sources and reference correctly, see: https://student.unsw.edu.au/referencing. 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.

Workload

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

Attendance

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.
BUS.EQS.Consultations@unsw.edu.au
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.
learningcentre@unsw.edu.au
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.
advisors@unsw.edu.au
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.
International.student@unsw.edu.au
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.
els@unsw.edu.au
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.
counselling@unsw.edu.au
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.
externalteltsupport@unsw.edu.au
02 9385 3331

UNSW IT
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



MNGT5322