SYLLABUS

BSNS 4320

ENTREPRENEURSHIP II: FUNDING NEW VENTURES

3 CREDIT HOURS

SEMESTER 2, 2007-2008

I. GENERAL INFORMATION

Class Meetings: Thursday: 6:00 – 8:50

Hardacre Hall, Room 232

Instructor: Emmett Dulaney

Office Address: Falls School of Business

Hardacre Hall, Room 231

Anderson University

Anderson, IN 46012-3495

Phone: 765.621.4126

Email: eadulaney@anderson.edu

Office Hours: Before class, or by appointment

II. CATALOG COURSE DESCRIPTION

This course focuses on the potential funding sources for the business plans written in Entrepreneurship I. Attention is given to both equity and debt financing. Sources studied include venture capital funds, bank financing, SBA loans/grants/guarantees, angel investors, community development funds, and others. The course explores appropriate legal forms of business to accompany chosen financing strategies including limited liability companies, limited liability partnerships, corporations (C and Subchapter S), limited and general partnerships, sole proprietorships, holding companies, and others. Attention is given to developing the deal structure and investor exit strategy as well as limitations imposed on raising capital by the Securities and Exchange Commission.

PREREQUISITE: BSNS 4310.

III. REQUIRED TEXT AND MATERIALS

Raising Capital, 2^nd Edition by Andrew Sherman (ISBN: 0814408567)

The Speed of Trust by Stephen M.R. Covey (ISBN: 074329730X)

There will be assigned readings from Entrepreneur, the Wall Street Journal, The Economist, and other journals. Links to pertinent articles, or handouts, will be assigned on a topic-by-topic basis and posted on the blog.

IV. PURPOSE & OBJECTIVES OF THIS COURSE

The major objective of this course is to develop the skills necessary to obtain funding for a business plan from a group of Private Investors, Bankers, and/or Venture Capitalists. Meeting course prerequisites indicates exposure to the elements needed to formulate a business plan and understand the basics of funding. We will focus on the integration of that core knowledge.

V. ATTENDANCE REQUIREMENTS:

Class attendance is vital to the learning experience of the student in this course. Therefore, students are expected to attend and participate in the class unless prevented by reasonable circumstances. Excessive absences WILL result in a reduction in grade.

VI. ETHICAL EXPECTATIONS

Students are expected to conduct themselves with the highest ethics. Individual assignments are to be done only by the student. All submissions handed in under a student’s name are to be limited to that student’s work. Any exception to these guidelines should be reported and discussed with the instructors. There is a ZERO TOLERANCE rule in effect for this area; any violations will result in a zero for the submitted material.

VII. POLICIES RELATED TO STUDENTS WITH SPECIAL NEEDS

Students having special problems that might affect their performance should notify the instructors during the first week of school. Possible arrangements can be made to work closely with the Learning Center, a tutor, or special time provided by the instructors.

VIII. COURSE FORMAT:

This course will be taught using a combination of analysis, seminar, and lecture formats. Outside speakers and articles from current business periodicals will also supplement the course, as well as relevant videos and student presentations. Some class time will be devoted to working on projects. Students should seek the instructor’s input as needed.

IX. GRADING CRITERIA AND SCALE:

FINAL PLAN (WRITTEN) 25%

FINAL PLAN (PRESENTATION) 15%

MIDTERM 15%

ATTITUDE/COMMUNICATION 10%

ASSIGNMENTS/QUIZZES 35%

TOTAL 100%

100% > A > 93% 83% > B- > 80%

93% > A- > 90% 80% > C > 70%

90% > B+ > 86% 70% > D > 60%

86% > B > 83% 60% > F > 0%

There is an expectation that funding will be sought for the plan, or plans, developed during the course. This funding may come in the form of competitions (Nascent 500, Taylor’s Business Plan Competition, etc.) or through the Micro Incubator. Throughout the course, we will work on the presentations and refine them for this purpose.

One of the two books being used, The Speed of Trust, will be assigned to be led in discussion each week by a different student. While everyone is responsible for reading the assigned text, that student will lead the discussion (approximately thirty minutes) and incorporate relevant information from other sources into that discussion. Assignments will be made the first night regarding this book.

X. TENATIVE SCHEDULE

Week of:	Notes/Topic(s)	“Raising Capital”	“The Speed of Trust”
1/17	Course Expectations, Business Plan Review, etc.
1/24		Chapter 1: Capital-Formation Strategies and Trends	The One Thing That Changes Everything (p. 1-40)
1/31		Chapter 2: Understanding Legal and Governance Structures	The First Wave – Self Trust (p. 41-59)
2/7		Chapter 3: The Role Your Business Plan Plays	Core #1: Integrity (p.59 – 72)
2/14		Chapter 4: Start-Up Financing	Core #2: Intent (p. 73 – 90)
2/21		Chapter 5: The Art and Science of Bootstrapping	Core #3: Capabilities (p. 91 – 108)
2/28		Chapter 6: Private Placements	Core #4: Results (p. 109 – 124)
3/6	MIDTERM	Chapter 7: Commercial Lending	The Second Wave: Relationship Trust and first two behaviors (p.125 – 151)
3/13 NO CLASS – SPRING BREAK	NO CLASS – SPRING BREAK
3/20		Chapter 8: Leasing, Factoring, and Government Programs	Behaviors 3 - 5 (p.152 – 171)
3/27		Chapter 9: Venture Capital	Behaviors 6 - 9 (p.172 – 199)
4/3		Chapter 10: Anatomy of a Venture-Capital Transaction	Remainder of Behaviors and Action Plan (p. 200 – 232)
4/10		Chapter 11: Preparing for an Initial Public Offering	The Third Wave – Organizational Trust (p. 233 – 260)
4/17		Chapter 12: The Mechanics of an Initial Public Offering	The Fourth Wave – Market Trust (p. 261 – 271)
4/24		Chapter 13: Franchising, Joint Venture, Co-Branding, and Licensing	The Fifth Wave – Societal Trust (p. 271 – 284)
5/1		Chapter 14: Mergers and Acquisitions	Inspiring Trust (p. 285 – 324)

NOTE: Syllabus and schedule to change as needed.