New Forms of Funding in Strategic Corporate Finance: Entrepreneurial Finance, Venture Capital, Private Equity and Hedge Funds

Objetivo deste artigo é apresentar os resultados da pesquisa realizada com a finalidade de analisar as implicações das políticas de ajuste fiscal no financiamento da educação superior brasileira, considerando o atendimento ao setor privado-mercantil, o orçamento destinado às universidades públicas federais e o pagamento da dívida pública, no período 2003-2016. Os dados financeiros foram extraídos do Tesouro Nacional, do Tribunal de Contas da União, do Senado Federal. Também se utilizaram documentos da KPMG Corporate Finance, da CM Consultoria, da Hoper Consultoria, da Associação Brasileira de Private Equity e Venture Capital (ABVCAP) e da Bolsa de Valores de São Paulo. Os resultados indicam que, mesmo diante da ampliação dos recursos destinados às universidades públicas federais, os valores são consideravelmente inferiores aos destinados à dívida pública. Também fica evidente que a expansão e a lucratividade do setor privado-mercantil são incentivadas pelas políticas do governo federal por meio do Programa Universidade para Todos (Prouni) e do Fundo de Financiamento Estudantil (Fies). Conclui-se, diante do congelamento dos gastos sociais federais nos próximos 20 anos, com a Emenda Constitucional n. 95/2016, aprofundando a política de ajuste fiscal, que as universidades públicas federais sofrerão consequências negativas para a sua manutenção, bem como será fortalecido o setor privado-mercantil.

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What Do University Endowment Managers Worry About? An Analysis of Alternative Asset Investments and Background Income

Education Finance and Policy ◽

10.1162/edfp_a_00193 ◽

2016 ◽

Vol 11 (4) ◽

pp. 404-425 ◽

Cited By ~ 2

Author(s):

Harvey S. Rosen ◽

Alexander J. W. Sappington

Keyword(s):

Venture Capital ◽

Hedge Funds ◽

Private Equity ◽

The Other ◽

Government Grants ◽

The University

This paper examines whether university endowment managers think only in terms of the assets they manage or also take into account background income, that is, the other flows of income to the university. Specifically, we test whether the level and variability of a university's background income (e.g., from tuition and government grants) affect its endowment's allocations to so-called alternative assets, such as hedge funds, private equity, and venture capital. We find that both the probability of investing in alternative assets and the proportion of the portfolio invested in such assets increase with expected background income and decrease with its variability.

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The Role of Venture Capital and Private Equity in the Entrepreneurial Finance Ecosystem

39th International Conference on Organizational Science Development ◽

10.18690/978-961-286-388-3.26 ◽

2020 ◽

Author(s):

Petra Katic ◽

◽

Dina Vasic ◽

Keyword(s):

Venture Capital ◽

Private Equity ◽

Web Of Science ◽

Venture Capitalists ◽

Entrepreneurial Finance ◽

Journal Articles ◽

Equity Financing ◽

Critical Data ◽

Literature Reviews

This paper researches the role of venture capital and private equity in the entrepreneurial ecosystem by reviewing the literature within that domain. The existing literature, studies and other literature reviews are included in this paper to learn if there is a progress in the field and to collect the most critical data regarding venture capital and private equity in entrepreneurial finance. An analysis is limited to scholarly journal articles and reviews published during the last five years (2014 – 2019) and available within the ISI Web of Science database. To detect current themes in the field, we performed a bibliometric analysis of entrepreneurial equity financing research. By dividing the literature into four clusters that are presenting the main findings within the area, this study provides a better understanding of venture capital and other sources of entrepreneurial funding. The results of this study indicate that the essential benefit that venture capitalists offer to entrepreneurs after financing consists of their involvement, monitoring and advising. This paper highlights the main points that can assist entrepreneurs in understanding the role of venture capital better.

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Outreach Networks: First Venture Round

Darden Business Publishing Cases ◽

10.1108/case.darden.2016.000225 ◽

2017 ◽

pp. 1-7

Author(s):

Susan Chaplinsky

Keyword(s):

Venture Capital ◽

Cash Flow ◽

Private Equity ◽

Early Stage ◽

Venture Capitalist ◽

Entrepreneurial Finance ◽

Discounted Cash Flow ◽

Start Up ◽

Excel File

OutReach Networks is taught in Darden's Entrepreneurial Finance and Private Equity elective. A teaching note for this case is available for instructors as well as an Excel file for student analysis. This introductory case explores the venture capital (VC) and discounted cash flow (DCF) methods of valuing early-stage companies. OutReach Networks is an unusual start-up company in that it was profitable early in its development and did not have to seek VC funding to support its growth. The company has grown quickly and may soon be a candidate for an IPO. In November 2011, an experienced venture capitalist approaches the founder with an offer to invest $30 million in exchange for 30% of the company. While the founder sees some benefit from the VC's experience in preparing the firm for an IPO and the funding enabling it to scale more quickly, he cannot understand how the VC has arrived at this offer. The founder believes the funding should be worth no more than 15% of his firm. Potential reasons for the disagreement over the valuation are (1) differences in the founder's and investor's view of the company's risk, (2) disagreement over the appropriate set of comparable companies, and (3) differences in the methods used to calculate the percentage equity stake. The case is appropriate for use in courses covering entrepreneurial finance or venture capital.

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DuPont Corporation: Sale of Performance Coatings

Darden Business Publishing Cases ◽

10.1108/case.darden.2016.000098 ◽

2017 ◽

pp. 1-22

Author(s):

Susan Chaplinsky ◽

Felicia C. Marston ◽

Brett Merker

Keyword(s):

Corporate Finance ◽

Private Equity ◽

Cash Flows ◽

Base Case ◽

Entrepreneurial Finance ◽

Present Value ◽

Elective Course ◽

Second Year ◽

Free Cash Flows ◽

Adjusted Present Value

In January 2012, Ellen Kullman, CEO and chairman of DuPont, must decide whether to retain or sell the company's Performance Coatings (DPC) division. This is an introductory case on valuing a leveraged buyout. The case focuses on a publicly listed corporation's decision to divest a large division and asks students to compare the division's value if it remains under DuPont's control or is sold to an outside party. The transaction size of approximately $4 billion is too large for potential strategic buyers in the industry, making private equity (PE) firms the most likely bidders. The case provides a base-case adjusted present value (APV) model of DPC as a stand-alone company and gives students specific assignments to adjust it to reflect the division's potential value under PE ownership (e.g., EBITDA growth, multiple arbitrage, and increased leverage).The case is designed to illustrate and discuss the differences between a public company's valuation based on unlevered free cash flows and a PE sponsor's valuation based on residual (levered) cash flows.This case has been successfully taught in a second-year elective course covering entrepreneurial finance and private equity and in an advanced undergraduate course on corporate finance. It is appropriate for use in classes on private equity, advanced corporate finance, or deal valuation.

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