• Grenoble Ecole de Management

Raising Funds for Your Startup

Get to grips with the basics of funding a start up and understand the process of successful financing rounds.

6,599 enrolled on this course

A leader in front of a group, with icons indicating ideas, funding and progress.

Raising Funds for Your Startup

6,599 enrolled on this course

  • 4 weeks

  • 3 hours per week

  • Accreditation available

  • Digital certificate when eligible

  • Introductory level

Find out more about how to join this course

  • Duration

    4 weeks
  • Weekly study

    3 hours
  • Languages

    English, Italiano, Español, Français, PortuguêsEnglish, Italiano
  • 100% online

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    $349.99 for one yearLearn more
  • Accreditation

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The CPD Certification Service

The CPD Certification Service was established in 1996 and is the leading independent CPD accreditation institution operating across industry sectors to complement the CPD policies of professional and academic bodies. Find out more.

Understand the process of funding a start up

Almost all startups need external financing, but new entrepreneurs rarely have training in fundraising.

On this course, you’ll learn the basics of financing a start-up. You’ll explore how important financial backing is for success and how to attract and negotiate with investors.

This course is also available in French. To join the French run of the course, visit the course page.

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Skip to 0 minutes and 8 seconds Raising funds is a necessary step for most startups. It makes it possible to finance an entrepreneurial project and to get it up and running more quickly. But it makes for a long and complex process, especially when it is the first time.

Skip to 0 minutes and 24 seconds In addition, the world of fundraising is evolving. New actors, like accelerators and crowdfunding platforms, have appeared over the years.

Skip to 0 minutes and 37 seconds The objective of this four-week course is to help you acquire the knowledge and skills necessary to master the fundraising process.

Skip to 0 minutes and 46 seconds We will address four topics: - Who accompanies and finances startups, what their decision making process is, and how they select projects, - How to prepare a financial plan to estimate the financing needs, fundraising requirements, and value of your company this being necessary to determine the dilution in case you open the equity to new investors - How founders can negotiate agreements effectively with their investors over successive rounds of financing - and finally, how to succeed in the post-investment phase, since raising funds is not an end in itself, but a way to make your project succeed. Plus, taking on new investors will have a profound impact on the control and governance of the business.

Skip to 1 minute and 33 seconds Especially since some shareholders, like business angels and venture capital funds, will want to exit, or resell their holdings, after a few years. This course has been designed for entrepreneurs who are considering or already planning a financing round. It is also appropriate for students studying entrepreneurship and anyone who would like to learn more about the actors, processes, and consequences involved in raising funds. I have created this course, as Professor at Grenoble École de Management, and as Business Angel, in order to present you with practical, concrete information from my own experience as well as from the academic literature on entrepreneurial finance. The course includes case studies from entrepreneurs and startup investors as well as many examples and exercises.

Skip to 2 minutes and 12 seconds It’s time to take action: join me on FutureLearn and get ready to prepare your next financing round¦

Syllabus

  • Week 1

    How to identify and convince investors

    • Why and how do startups raise funds?

      Why do startups have to raise funds from external partners and what makes their finances different from that of other enterprises?

    • Who accompanies and finances startups?

      During the course, we will follow the progress of a young entrepreneur, Aude. She has never raised funds before and does not know how to go about it. To start, we will explore the various sources of funding for startups.

    • How to choose investors?

      Aude is wondering how to approach fo fund her project and how to choose the right financial partners.

    • How to convince investors?

      Aude has identified equity investors who could finance her venture, but she has to convince them! What is their decision-making process? What criteria do they use to select projects?s?

  • Week 2

    How to evaluate a business and its financing needs?

    • Preparing a financial forecast

      Financial projections are prepared to help determine the financing requirements and the value of the enterprise. It is a very useful exercise but it is also full of uncertainty, especially for companies in the seed phase.

    • Financing need and financing rounds

      The cash flow projections reveal a funding need that will have to be met through successive rounds of financing. In addition to equity, a young company can raise grants, subsidies, and some financial debt.

    • Determining the value of a company

      To open up the startup’s capital, its value has to be determined. This is not easy as it depends on its future value, which in turn depends on the success of the project... It is also the result of negotiations.

    • Valuation methods

      There are several enterprise valuation methods. They are more or less well adapted to startups.

    • To close this week

      Some advice and a quiz

  • Week 3

    How to negotiate with investors?

    • Successive financing rounds and dilution

      This week, four activities to learn how to negotiate with investors: successive rounds and dilution, the negotiation process, the agreements between founders and investors, the price adjustment clauses. But first we with Aude...

    • Agreements between founders and investors

      The proper negotiation of balanced agreements, in particular the shareholders’ agreement, results in a greater chance of success in the post-investment phase.

    • Price adjustment mechanisms

      Since it is difficult to determine an entry price for a young venture, it can be useful to plan to adjust the price a posteriori, depending on the achievements and performance of the enterprise.

    • Next week

      What will we do next week?

  • Week 4

    How to succeed in the post-investment phase

    • Startup governance and value creation

      Once an equity round is completed, the next step is to succeed! Energy and realism, a suitable governance structure, and productive investor relations can contribute to that success.

    • Preparing for a successful exit

      Most financial investors prefer to resell their shares after 4 to 6 years.

    • To end the course

      Here are a few final thoughts and the test required to pass the course. Then it’s up to you!

Who is this accredited by?

The CPD Certification Service
The CPD Certification Service:

The CPD Certification Service was established in 1996 and is the leading independent CPD accreditation institution operating across industry sectors to complement the CPD policies of professional and academic bodies.

When would you like to start?

Start straight away and join a global classroom of learners. If the course hasn’t started yet you’ll see the future date listed below.

  • Available now

Learning on this course

On every step of the course you can meet other learners, share your ideas and join in with active discussions in the comments.

What will you achieve?

By the end of the course, you‘ll be able to...

  • Identify the potential investors in startups and understand their decision process and their selection criteria
  • Design a sound financing plan in order to estimate the financing needs and the value of the startup, which determines the founders ‘dilution when raising equity
  • Reflect on the process and the main issues of the negotiation of agreements between founders and external investors along successive financing rounds
  • Identify the key points to watch in order to succeed the post-investment phase and prepare the exit.

Who is the course for?

This course is aimed at entrepreneurs who are considering or preparing a financing round. It can also be useful for students of entrepreneurship or management, and to anyone wishing to get a better understanding of the actors, processes and consequences of a financing round.

A general knowledge in business will help, though it is not required.

This course is taught by a French team, but all course resources will be in English or subtitled in English.

Who will you learn with?

Professor at Grenoble Ecole de Management and angel investor. Teaching and research in entrepreneurial finance. Advisor for incubators. Previously worked in corporate finance and in private equity.

Who developed the course?

Grenoble Ecole de Management

For the past 30 years, Grenoble Ecole de Management (GEM) has established itself in France and abroad as a leading business school through expertise in technology, innovation and entrepreneurship.

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Develop skills to further your career

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