Equity and Venture Capital Financing

Instructor Prof. Gimede Gigante

Course Description

The course is focused on the understanding and on the analysis of private equity & venture capital business, in the perspective both of entrepreneurs looking for money and of financial intermediaries and advisors dedicated to scouting, advisory, arranging and financing activities. Particular attention is given to provide students with a deep understanding of the mechanism underpinning the creation or the development of a firm and the financial sustain coming from the financial system: i.e., the start up financing. As a consequence of that the course is divided into four main areas: definition, legal, fiscal and market issues; management of a private equity & a venture capital fund; techniques of company valuation; deal making. The presentation of real-word case-studies and the usage of techniques coming from major players belonging to private equity world will further enhance the link with the best practices observable in the market.

Learning Objectives

The course addresses the following questions and issues:

1. Are private equity and venture capital firms necessary in a modern economy?
2. What are the key trends in private equity and venture capital industry in Europe and in the US?
3. How does the financial system sustain the firms development and creation?
4. What are key competitive models of private equity and venture capital?
5. How do “business angels”, incubators, incubators, start-up financer, closed-end funds, merchant banks and vulture funds create economic value?
6. What are key regulatory and legal issues in private equity and venture capital?
7. What are the key legal and fiscal issues for venture capital investment schemes?
8. How to scout, evaluate and manage investments in various stages of a firm’s development (new ventures, start-ups, young firms, high potential firms, family owned firms and firms in turnaround)?
9. How to organize and manage the funding process, a single investment and the portfolio of investments?

Course Material

For all students specific readings, slides and cases will be given through e-learning space day by day. The optional textbook of the course is the following “Caselli, S., Negri, G. “Private Equity and Venture Capital in Europe - Markets, Techniques, and Deals”, 3nd Edition, 2021 ELSEVIER Academic Press”

Assessment Method

40% work in small groups and 60% individual assessment (final written online exam)