University of Technology Sydney

25626 Startup Finance

Warning: The information on this page is indicative. The subject outline for a particular session, location and mode of offering is the authoritative source of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.

Subject handbook information prior to 2024 is available in the Archives.

UTS: Business: Finance
Credit points: 6 cp

Subject level:

Undergraduate

Result type: Grade and marks

Requisite(s): 25300 Fundamentals of Business Finance
These requisites may not apply to students in certain courses.
There are course requisites for this subject. See access conditions.

Description

This subject guides students through all the financial aspects of startups – i.e. businesses in the initial stages of operation that have the potential for tremendous growth. Simulating a real-world startup, students are assigned to roles inside a startup as well as a role inside a venture capitalist group that funds startups. Group presentations (pitching) for funding are used to assess financial plans. Students are responsible for creating financing plans and working with cash flow needs of startups. Students are also be responsible for critically examining other students’ work by analysing financing proposals and plans and allocating resources of venture capitalists.

Subject learning objectives (SLOs)

Upon successful completion of this subject students should be able to:
1. Prepare and critically evaluate financing plans for startups
2. Evaluate startup metrics and how they relate to financing
3. Communicate a startup’s financial plan through effective pitching to inform and persuade key stakeholders
4. Evaluate and recommend startup exit strategies

Contribution to the development of graduate attributes

The subject provides students with experiential learning through simulating the financing components of startups. The subject aims to assist students in preparation for a variety of careers in startups, including from within a startup as well as in the investment management and venture capital industry through learning how to evaluate startups. Specifically, the subject is aligned with the following Graduate Attribute(s) of the UTS Business School:

  • Intellectual rigour and innovative problem solving
  • Communication and collaboration
  • Professional and technical competence

Teaching and learning strategies

Students will be assigned into groups so that the learning experience can be broadened and the different roles within a startup and a venture capital firm can be simulated. Readings and guest speakers will also assist with understanding the dynamics of startup founders. Readings and information will be provided for the different financing stages of a startup, and in class simulations of pitching will reinforce the learning and the evaluation used in industry.

Pre-class reading and videos are critical components of the learning process of the subject. This will enable efficient and interactive in-class learning which includes external visitors from the entrepreneurial ecosystem. Feedback will be frequent and takes several forms including self-assessment and peer review.

Content (topics)

  • Startup financing structures
  • Complex risk and return relationships
  • Financing sources for startups
  • Financing communication through pitching
  • Methods of valuing startups
  • Startup performance metrics
  • Financing aspects of exit strategies

Assessment

Assessment task 1: Pitching Financing (Group)*

Objective(s):

This addresses subject learning objective(s):

1, 2 and 3

Weight: 30%
Length:

Each pitch will be a maximum of 5 minutes

Criteria:
  • Depth of analysis and support of financing plan;
  • Quality of group work and collaboration
  • Clarity, depth and completeness of pitch

*Note: Late submission of the assessment task will not be marked and awarded a mark of zero.

Assessment task 2: Pitching Analysis (Individual)

Objective(s):

This addresses subject learning objective(s):

1 and 2

Weight: 20%
Length:

Pitch assessment will be a one page response written in class taking no more than 15 minutes

Criteria:
  • Identification of financing issues
  • Justification of funding decision

Assessment task 3: Critical thinking and analysis activities (Individual)

Objective(s):

This addresses subject learning objective(s):

1, 2, 3 and 4

Weight: 50%
Length:

Written assessments in class will take a maximum of 10 minutes and take home video responses will be a maximum length of 2 minutes.
Criteria:
  • Depth of analysis of financing plan
  • Justification of funding choices, including references to which techniques were used to inform the decision
  • Evaluation and analysis of pitching
  • Evaluation of exit strategies

Minimum requirements

Students must achieve at least 50% of the subject’s total marks.

Required texts

There is no required textbook. All resources will be made available through the learning management system.

References

The subject will draw on many areas of finance and a list of useful resources will be provided to students via the learning management system.