Undergraduate Course: Venture Capital and Private Equity (BUST10164)
Course Outline
| School | Business School |
College | College of Arts, Humanities and Social Sciences |
| Credit level (Normal year taken) | SCQF Level 10 (Year 3 Undergraduate) |
Availability | Available to all students |
| SCQF Credits | 20 |
ECTS Credits | 10 |
| Summary | Finance theory and practice has been developed in the context of public equity markets. Venture capital (VC) and private equity (PE) investments play a key role in generating transformative societal impact, driving disruptive innovation and economic growth as traditional finance cannot provide capital for such (risky) ventures. The industry merits special consideration not only because of its scale but also because of the unique characteristics of the market compared to other sources of equity financing. The private market and its investment process operate in a distinctly different manner to public markets. The course is designed to critically evaluate the venture capital and private equity markets through a prism of finance theory. The course therefore emphasises the fundamental need to identify, discuss, critically evaluate and synthesize the developing theories, frameworks and models, both quantitative and qualitative, which are used in explaining financial intermediation in the field of private markets and venture capital. |
| Course description |
Honours Venture Capital and Private Equity considers aspects of the financing and governance of portfolio companies and VC/PE funds believed to be of academic interest and practical importance. The aims are to introduce students to current thinking and empirical research on the chosen topics, and to develop skills of understanding, analysis and explanation. The course builds on the finance and accounting learned earlier in the degree programme, and so it assumes some knowledge of companies and financial reporting.
The objective is to move beyond a descriptive account of the mechanics of the private equity and venture capital industry (though this is important given the unique organisation and contract structures of the market) so that students gain a more complete understanding of why and how the industry operates as it does. These questions can be answered best through the prism of finance theory. We shall identify and discuss the critical stages in the engagement between entrepreneurs soliciting investment, and the VC/PE firms that select, invest in, nurture, and often refinance fast growing new companies or later-stage ventures. Valuations and performance metrics in venture capital and private equity will be examined in detail too.
Tutorial/seminar hours represent the minimum total live hours a student can expect to receive on this course. These hours may be delivered in tutorial/seminar, lecture, workshop or other interactive whole class or small group format. In each lecture, an overview of the topic is presented and several papers are reviewed in some detail, to give insight into the current state of research on the topic. In seminars, we will discuss case studies and specific questions relating to papers on the reading list.
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Information for Visiting Students
| Pre-requisites | None |
| High Demand Course? |
Yes |
Course Delivery Information
| Not being delivered |
Learning Outcomes
On completion of this course, the student will be able to:
- Identify, critically evaluate and synthesise substantive theories, operating practices, financing structures and financial models, both quantitative and qualitative, which are used in the venture capital and private equity industries.
- Use social skills to communicate in written and oral modes, interact and discuss effectively within a professional setting based on group assignments and active participation.
- Apply and develop financial models to critically evaluate venture capital and private equity investment decisions and develop hands-on financial analysis skills used in venture capital, private equity, investment banking and related industries.
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Reading List
Core text:
Da Rin, M. & Hellmann, T. (2020). Fundamentals of Entrepreneurial Finance, Oxford, ISBN: 978-0-19-974475-6
Metrick, A., & Yasuda, A. (2021).Venture capital and the finance of innovation. John Wiley & Sons.
Key Journals:
Gompers, P.A., Gornall, W., Kaplan, S.N., Strebulaev, I.A. (2020). How do venture capitalists make decisions?. Journal of Financial Economics, 135, 160-190.
Lerner, J. (1995). Venture capitalists and the oversight of private firms. Journal of Finance, 50(1), 301-318. |
Additional Information
| Graduate Attributes and Skills |
After completing this course, students should be able to:
Communication, ICT, and Numeracy Skills
-Convey meaning and message through a wide range of communication tools, including digital technology
and social media; to understand how to use these tools to communicate in ways that sustain positive and
responsible relationships.
-Critically evaluate and present digital and other sources, research methods, data and information; discern
their limitations, accuracy, validity, reliability and suitability; and apply responsibly in a wide variety of
organisational contexts.
Practice: Applied Knowledge, Skills and Understanding
-Apply creative, innovative, entrepreneurial, sustainable and responsible business solutions to address
social, economic and environmental global challenges.
Cognitive Skills
-Be self-motivated; curious; show initiative; set, achieve and surpass goals; as well as demonstrating
adaptability, capable of handling complexity and ambiguity, with a willingness to learn; as well as being able to
demonstrate the use digital and other tools to carry out tasks effectively, productively, and with attention to
quality.
Knowledge and Understanding
-Demonstrate a thorough knowledge and understanding of contemporary organisational disciplines;
comprehend the role of business within the contemporary world; and critically evaluate and synthesise primary
and secondary research and sources of evidence in order to make, and present, well informed and transparent
organisation-related decisions, which have a positive global impact.
-Identify, define and analyse theoretical and applied business and management problems, and develop
approaches, informed by an understanding of appropriate quantitative and/or qualitative techniques, to explore
and solve them responsibly. |
| Keywords | Venture Capital,Private Equity,Private Markets |
Contacts
| Course organiser | Dr Pia Helbing
Tel:
Email: |
Course secretary | |
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