Financing and Profiting from Innovation

University of Maryland (UMD) and USMx

Course Description

"Financing and Profiting from Innovation" is an introductory-level course designed to demystify key financial concepts for aspiring and active entrepreneurs and innovators. This comprehensive course provides a practical guide to understanding financials and securing funding for new ventures, assuming no prior knowledge in accounting, economics, or finance.

What students will learn

  • Fundamentals of entrepreneurial finance and startup funding
  • Various financing options for new ventures
  • Basics of finance, valuations, dilution, and non-dilutive funding sources
  • Capital structure for new ventures and term sheet negotiations
  • Differences between early-stage and later-stage financing
  • Techniques for developing winning investor pitches
  • Strategies for closing funding rounds

Pre-requisites

No specific prerequisites are required for this course. However, it is recommended that students have completed "Identifying Entrepreneurial Opportunities" and "Creating Innovative Business Models" for a more comprehensive understanding of the entrepreneurial process.

Course Coverage

  • The early-stage investment landscape
  • Sources of capital for startups and corporate ventures
  • Steps in the funding process
  • Pitching to investors and closing funding rounds
  • Financial concepts and terminology for entrepreneurs
  • Valuation techniques and capital structure analysis
  • Term sheet components and negotiation strategies
  • Common pitfalls to avoid when seeking funding

Who this course is for

  • Aspiring entrepreneurs looking to launch their first venture
  • Active entrepreneurs seeking to improve their financial knowledge
  • Innovators within established companies exploring corporate venturing
  • Business students interested in startup financing and entrepreneurship
  • Professionals transitioning into entrepreneurial roles

Real-world Application

Learners will be able to:

  1. Evaluate different funding options for their ventures
  2. Create comprehensive funding strategies
  3. Develop compelling investor pitches
  4. Negotiate term sheets effectively
  5. Understand and analyze financial statements
  6. Make informed decisions about capital structure and dilution
  7. Navigate the fundraising process with confidence
  8. Communicate effectively with potential investors and partners

Syllabus

Module 1: The Early Stage Investment Landscape

  • Introduction to the investment landscape
  • Key terminology and principles in accounting and finance
  • How investors and lenders evaluate new ventures

Module 2: Sources of Capital for Startups and Corporate Ventures

  • Friends and family funding
  • Angel investors
  • Venture capital
  • Internal and external financing for corporate ventures
  • Pros and cons of each funding source

Module 3: Getting Funded – Steps in the Funding Process

  • Techniques and tools for securing funding
  • Creating a comprehensive funding strategy
  • Understanding the fundraising process

Module 4: Pitching Investors and Closing the Round

  • Developing a compelling story for your venture
  • Best practices for pitching to investors
  • Dos and don'ts of investor presentations
  • Strategies for closing the funding round