Financing for Innovative Business Projects

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Credits
1.5
Types
Elective
Requirements
  • This subject must be enroled at the same time as: VPEI-MEI
Department
OE
The aim of the subject is to prepare participants to be able to, once structured the first draft business plan that goes around an innovative business idea, to asses the size of the financial needs of the company and view the different possible sources of funding for this hypothetical new company in addition to being able to discern the advantages and disadvantages of each of them and decide finally what the optimal financial structure of the new company might be.

From this point of view topics such as leverage vs. Solvency, classic bank financing, funding balance between short and long term, public or private aids, limits on the capital injection by the entrepreneurial team, venture capital and private equity: operation and warnings, other sources of funding, etc., will be dealt with.

Teachers

Person in charge

  • Fernando Barrabes Naval ( )

Others

  • Ferran Sabate Garriga ( )
  • Joaquim Deulofeu Aymar ( )
  • Marcos Eguiguren Huerta ( )

Weekly hours

Theory
1
Problems
0
Laboratory
3
Guided learning
0
Autonomous learning
7.19

Competences

Technical Competences of each Specialization

Direcció i gestió

  • CDG3 - Capability to manage research, development and innovation projects in companies and technology centers, guaranteeing the safety of people and assets, the final quality of products and their homologation.

Generic Technical Competences

Generic

  • CG8 - Capability to apply the acquired knowledge and to solve problems in new or unfamiliar environments inside broad and multidisciplinary contexts, being able to integrate this knowledge.
  • CG10 - Capacity to apply economics, human resources and projects management principles, as well as legislation, regulation and standardization of Informatics.

Transversal Competences

Entrepreneurship and innovation

  • CTR1 - Capacity for knowing and understanding a business organization and the science that rules its activity, capability to understand the labour rules and the relationships between planning, industrial and commercial strategies, quality and profit. Capacity for developping creativity, entrepreneurship and innovation trend.

Objectives

  1. Training the students to build a P&L forecast and a forecasted treasury plan for an emerging company
    Related competences: CTR1, CDG3, CG10,
  2. Understanting and being able to apply the different instruments to finance the company, both debt instruments or private equity and venture capital sources
    Related competences: CG10, CG8,

Contents

  1. Revising the initial balance sheet and building the forecasted balance sheet for year one
  2. Treasury plan, Identifying long and short term financial needs
  3. Conventional long and short term financial instruments
  4. Private equity: founders, fools, friends & family, venture capital. Their limitations. Cautions to be taken and how they work.
  5. Presenting the plan to possible simulated investors

Activities

Activity Evaluation act


Revising the initial balance sheet and building the forecasted balance sheet for year 1


  • Laboratory: Building their own forecasted balance sheet around provisional business plan figures Building an excel file with the business plan data to feed with them the lab session
  • Autonomous learning: Reading the Oriol Amat book at bibliography Going ahead with your business plan
Objectives: 2
Contents:
Theory
1h
Problems
0h
Laboratory
3h
Guided learning
0h
Autonomous learning
6h

Definition and theory of the treasury plan. Identifying financial short and long term needs


  • Laboratory: To design their own treasury plan with the provisional data from their business plan
  • Autonomous learning: Reading chapter on venture capital in the book "Entrepreneurship" at bibliography Going ahead with your business plan
Objectives: 1 2
Contents:
Theory
1h
Problems
0h
Laboratory
3h
Guided learning
0h
Autonomous learning
6h

Conventional financial instruments, short and long term. Private equity: founders, friends, fools & family, venture capital, their limits, cautions and operational suggestions


  • Laboratory: Preparing the initial proposal for investors to be defended at the final presentation and defining the financial structure of their company based on the business plan data Work on writing the final presentation
  • Autonomous learning: Keeping on reading the Oriol Amat book mentioned at the bibliography and study for the final presentation
Objectives: 1 2
Contents:
Theory
1h
Problems
0h
Laboratory
3h
Guided learning
0h
Autonomous learning
6.5h

Presenting the final plan to a jury formed by investors


Objectives: 1 2
Week: 3
Theory
0h
Problems
0h
Laboratory
1.5h
Guided learning
0h
Autonomous learning
5.5h

Teaching methodology

During the lectures, classes will be complemented, depending on the subject, with previous examples of development that enable students to gain practical ideas for the work to be done in the project sessions.

In some cases, theory lectures will include short lectures of entrepreneurs or managers to provide real guidance on how he / she solved problems in specific topics such as the assessment of venture capital bids.

Regarding project sessions, they will focus on enabling students to build a whole financial plan including a solution for the financial structure of the company and its defense in front of possible investors.

Evaluation methodology

The evaluation is based on student presentations and the defense of a financial plan and its detailed structure of financing to a jury composed of members of the academic faculty and - optionally - for other members of the university or other high level professionals that will take the role of professional investors.

Throughout the course there are two evaluative milestones:
- The presentation of the business plan with its proposal for investors
- The analysis of the financial plan.
The presentation simulates a professional environment. Consequently, the following aspects will also be evaluated: formal dress, well-structured communication, etc.

To be able to publicly defend the financial plan, students must have attended 70% of classes and the teams must have delivered on time all planned activities. The plan is the result of teamwork, which will be reflected in the rating given to the group as a whole.

Bibliography

Basic:

Previous capacities

Having some previous experience in business administration or having previously completed subjects such as VPE (Viability of Business Projects) while studying Computer Engineering is desirable.

Reading a certain level in English is also desirable.