098793 Entrepreneurial Economics and Finance

Course Goals and Content

In this course we analyze matters like the economic value of innovative firms, the entrepreneurial capital formation process and the migration of managed economies towards entrepreneurial economies; afterwards we present the various financing mechanisms of startup firms with focus on VCs structure and operation, emphasizing the role of VCs in the development of the high-tech industry segment. Within the course scope we will address some controversial aspects such as contract and security design, VC performance and alternative funding instruments. The course subjects sequence is as following:

  • Innovation, entrepreneurship and economic growth
  • Solow neoclassical economic growth model
  • Innovation as economic resource (Arrow 1962)
  • The economic constraints of startup firms
  • New projects borrowing capacity
  • Entrepreneurs, investors and financial intermediaries
  • Investment process model
  • Numerical illustration of investment model
  • Financial aspects of entrepreneurship
  • Financing mechanisms during firm life
  • Venture Capital Financing
  • Venture Cycle
  • VCs performance
  • Guest Speaker Testimonial
  • Economic policy in innovation and entrepreneurship
  • Policy design models
  • New financing instruments: crowd financing, etc.
  • Course wrap-up and conclusions