%E2%80%98Entrepreneurial Finance%E2%80%99 is a set of ideas that is applicable to a broad spectrum of firms, from small entrepreneurial software firms to large international conglomerates. The financing needs of firms at the ends of this spectrum are significantly different from each other. Large firms%E2%80%99 financial needs, it can be argued, conform closely to the classic corporate finance model. This model generally operates under the assumptions that investment decisions and financing decisions can be made separately, capital markets are nearly perfect and almost free of transactions costs, and investors hold well%E2%80%90diversified portfolios. For many large, publicly traded firms this model is appropriate. For many entrepreneurial ventures, however, the assumptions of the corporate finance model clearly do not hold, even as approximations. Some investment choices, for example, are not possible except under particular financing choices. Also, the merits of a venture that has yet to produce any significant revenues are extremely difficult to communicate to prospective investors. Further, the entrepreneur is likely to stake much of her or his personal wealth as well as career on the venture. The limited diversification resulting from this commitment renders the standard valuation models used in corporate finance inappropriate.The objective of this course is to provide a better understanding of corporate finance issues confronting entrepreneurial firms. The issues will be explored by considering the differences between firms for which the standard corporate finance model is appropriate and firms for which the investment and financing issues are interdependent. An objective of this class is to further develop the framework used for thinking about finance issues and develop experience in applying this framework to making useful business decisions. Although the learning objectives will be focused on entrepreneurial ventures, they have direct application in more standard corporate, investments, insurance, and banking finance. In addition, this class will take a very pragmatic look at some of the financial issues confronting entrepreneurial ventures. The course uses an existing Danish entrepreneurial venture to examine better understand the financial issues associated with budding ventures. In the summer of 2013, the class examined an energy venture that uses energy from the sun to decrease the energy costs of cooling buildings. In the summer of 2013, the class examined the market for anti-infectives for biofilm treatment in medical applications.

Course leader
Teacher: Frank Kerins: http://www.montana.edu/business/faculty-staff/bio/kerins.html

Target group
Master's level.The prerequisites for this course are: microeconomics, corporate finance, and principles of accounting through financial statement preparation and analysis. Corporate finance topics that students will be assumed to be familiar with include: risk, diversification, cost of capital, capital structure, capital budgeting, and information economics (including signaling and reputational issues). These topics will be reviewed as necessary depending on the background of the class. Valuation, financial needs assessment, and forecasting objectives require students understand balance sheets, income statements, and cash flow statements.

Fee info
EUR 667: Price: Students holding a preapproval including exchange students do not pay for the course.ONLY Free-mover students and Tomplads students MUST pay for the course: Danish and EU/ES (tomplads): 667 EURNON-EU-ES students (free-mover): 998 EURBooks, course materials, social programme, and housing are not included in the tuition fee. Also be aware of course specific expenses mentioned in the description.



Scholarships
No scholarships available.

Aarhus University
Address: International Centre, H%C3%B8egh Guldbergsgade 4-6
Postal code: 8000
City: Aarhus
Country: Denmark
Website: www.au.dk/summeruniversity
E-mail: dfs@au.dk
Phone: +4551335274