VENTURE CAPITAL E PRIVATE EQUITY
Knowledge and understanding: The student will have acquired basic knowledge about the functioning of the venture capital and private equity market; he/she will know the process of investment and divestment in companies that require capital for growth. He/she will understand the framework of investment operations, being able to recognise the different characteristics of each; he/she will know the general framework of how to estimate the intrinsic value of target companies and its determinants.
Ability to apply knowledge and understanding: the student will know how to evaluate the companies being invested in, with respect to the industrial profile (business plan) and the economic and financial profile (company valuation); he/she will know how to construct a company presentation document (pitch) and discuss the main industrial variables (target market, products, resources, channels, partners, etc.), economic and financial variables of the business project (revenues, costs, margins, cash flows).
Autonomy of judgement: students will have developed the ability to critically examine the investment and financing opportunities offered by the target companies; they will be able to assess the presence of possible mispricing situations; express personal opinions on investment choices and the appropriateness of the target companies' business plans.
Communication skills: the student will have acquired the ability to understand the language, even slang, of operators and the mass media dealing with finance; he/she will be able to interact with professionals in the sector to comment on the development plans of a company, or to express opinions on the convenience and feasibility of an investment operation in a target company.
Learning ability: the student will be able to keep abreast of the dynamics of the venture capital and private equity market, of the evolution of start-up innovations and will be able to continuously enrich his or her knowledge on the subject by consulting the appropriate specialised information sources.
Knowledge of the basic elements of business economics, corporate finance and the economics of financial intermediaries.
Module 1: Course/project presentation + Overview, economic impact and market of Venture Capital and Private Equity (3 H)
Module 2: Workshop: Journal of Finance paper reading on the effects of PE Backed companies + project setting (groups and topics) (3 H)
Module 1: Venture Capital and Private Equity transactions (start-up, expansion, buy-out, replacement, turnaround, special situation) (3 H)
Module 2: The Investment Process and Business Plan (3 H)
Module 1: Testimony - Start-up part business plan and presentation for capital raising (3 H)
Module 2: ApprSeK 3:
Module 1: Workshop on group projects (progress - classroom discussion) (3 H)
Module 2: Pricing a transaction (3 H)
Module 1: Business valuation exercise (3 H)
Module 2: Investment Feasibility and Due Diligence (3 H)
Module 1: Venture Capital Testimony and Investment (what are investors looking for?) (3 H)
Module 2: Workshop on group projects (status - classroom discussion) (3 H)
Module 1: Investors and value creation (3 H)
Module 2: The Disinvestment Process (3 H)
Module 1: Group Project Presentation (3 H)
Module 2: Group Project Presentation (3 H)
Venture Capital refers to the activity of investing in the venture capital of initiatives aimed at the creation of new enterprises. Private Equity refers to the activity of investing in the venture capital of entrepreneurial initiatives in the development phase or in the process of change.
The topics covered during the course therefore concern the foundation of new start-ups and the raising of capital necessary for development, depending on the business life cycle.
More specifically, the topics covered in the course are as follows:
- Venture Capital and Private Equity market structure
- Types of operations (start-up, expansion, buy-out, replacement, turnaround, special situation)
- The investment process
- The business plan and creating a pitch for a start-up company
- Pricing of the target company
- Criteria for assessing investment feasibility
- The disinvestment process
- ESG and Venture Capital
Teaching activities are organised as follows:
- Lectures: aimed at providing basic knowledge and discussing the programme topics with the students.
- Workshop: aimed at acquiring methods for designing business ideas.
- Group work: students will be involved in group project presentation activities aimed at developing technical skills, coordination, adoption of technical language and public speaking.
- Company testimonials: experts and industry representatives are invited to enrich the course content by bringing their professional experience to the classroom.
- Individual study: students supplement the knowledge and skills acquired in the classroom with individual study of the textbook and the reading of in-depth documents indicated by the lecturer in order to foster autonomous learning skills.
The reference text for the course is as follows:
Authors: Gervasoni, A. and Sattin, F.L.
Handbook title: Private Equity and Venture Capital - Manuale di investment nel capital di rischio
The examination is different if the student is FREQUENTING or NON-FREQUENTING.
For FREQUENTLY ATTENDING students: Assessment is based on a classroom presentation of a group project that counts for 100% of the assessment. There are no oral or written test, but the final examination is the result of group work carried out during the course period.
Group projects will have the objective of proposing a start-up idea, constructing a structured business model, expressing a request for funding derived from a financial analysis of the company and the expected development model.
Students who systematically attend and participate in the lectures are considered to be attending. The prerequisite for being considered as attending is enrolment in a working group, and continuous participation in the planned activities, as well as attendance and active participation in the classroom sessions aimed at sharing progress.
The composition of the groups is agreed with the lecturer and communicated at the beginning of the course. Those who communicate their withdrawal from the assigned group, or are absent during the progress days, will be considered "non-attenders".
During the final lectures of the course, groups will be asked to present their projects. All group members are asked to present or discuss parts of their work.
For NON-FREQUENCING students: Assessment is by oral interview only (100%) and covers the following book chapters of the reference text: 1,2,3,4,5,6,8,9,10.