EPS4521 Financing Start-ups: From Seed to Public Offering
4 General Credits
This course offers an in-depth exploration of the financial journey required to take a start-up from zero to a publicly traded company, focusing on the various financing options and strategies along the way. While only about 1% of start-ups successfully make it to a public listing, the financial decisions they make at each stage significantly impact whether companies go public, get acquired, or fail. This course examines those decisions, with particular attention to the later stage financing rounds, include the IPO process, and alternative methods of going public.
The course is divided into two main sections:
1. Early-Stage Financing (1/3 of the course) – Students will explore the early funding mechanisms that allow start-ups to scale, from bootstrapping and angel investing to securing seed capital and Series A/B rounds. Special emphasis will be placed on understanding how entrepreneurs and investors navigate risk, negotiate terms, and structure deals that balance short-term needs with long-term growth objectives.
2. The Process of Going Public (2/3 of the course) – The second portion of the course focuses on the various routes to take a company public. While the traditional Initial Public Offering (IPO) is the most well-known path, this section also covers alternative options such as direct listings, reverse mergers, and Special Purpose Acquisition Companies (SPACs). Students will learn why companies choose to go public, how to assess the right time to take this step, and the financial and regulatory preparations necessary for a successful transition to the public market.
Key topics will include the role of investment banks, understanding the underwriting process, determining pricing strategies, and managing investor relations. Students will also evaluate the potential risks and rewards of different exit strategies, including mergers and acquisitions (M&As), many of which, unfortunately, fail to yield positive returns or may occur for strategic reasons like “saving face.”
Throughout the course, students will gain hands-on experience through case studies, financial modeling exercises, and insights from guest speakers working in venture capital, investment banking, and corporate finance. By the end of the course, students will be equipped to advise start-ups on the best ways to finance their growth, whether through venture rounds or by taking their company public.
For More Information please watch this video.
Key Topics:
· Early-stage funding options: bootstrapping, angel investing, venture capital
· Negotiating terms, equity distribution, and ownership in early rounds
· Scaling a business: financial strategies for sustainable growth
· Going public: why, when, and how to transition to the public market
· Alternative routes to going public: direct listings, SPACs, reverse mergers
· Risk management and the role of financial institutions in public offerings
· Understanding regulatory requirements, investor relations, and market timing
· Assessing M&A opportunities and recognizing when they don’t lead to meaningful returns
This course is ideal for aspiring entrepreneurs, venture capitalists, investment bankers, or anyone interested in understanding the financial mechanics and strategic decision-making behind start-ups’ paths to public markets.
Prerequisites: (FME1000 and FME10001) or (EPS1000 and MOB1010) and FIN 2000