Alexander Groh is Professor of Finance at EMLYON Business School, France. His research focuses on entrepreneurial finance, venture capital and private equity capital markets. His papers have been published in the Journal of Financial Economics, the Journal of Corporate Finance, the Journal of Banking and Finance, the European Economic Review, Research Policy, the Journal of Business Venturing, the Journal of International Money and Finance, the European Financial Management Journal, the Journal of Alternative Investments, the Journal of Real Estate Finance and Economics, the Emerging Markets Review, and in Venture Capital, among others.
He was Visiting Scholar at the University of California, Berkeley, USA, at the University of New South Wales, Sydney, Australia, at IESE Business School, Barcelona, Spain, and at INSEAD, Fontainebleau, France. Alexander Groh was born in Frankfurt, Germany. He received a joint Master’s degree of Mechanical Engineering and Business Administration from Darmstadt University of Technology, where he also gained his PhD degree in finance.
The course focuses on the finance aspects following the life cycle of young and innovative ventures from their start-up. These young ventures usually require substantial outside financing in early stages to eventually create employment, growth, social contributions and tax revenues in their future. Bank financing is hardly available for these ventures and therefore, all funds need to be raised from other sources, e.g. friends and family, business angels, or from professional financial intermediaries, so-called venture capital and private equity funds. Besides those traditional channels, ventures can raise funds from “the crowd” using digital platforms (crowdfunding) or blockchain-based technologies (ICOs).Data Science and Business Analytics
The course analyses issues associated with capital budgeting of innovative start-up firms, structuring start-up and expansion financing transactions, particularities of investments in non-traded illiquid high risk assets, capital staging and implementation of appropriate incentives to mitigate agency costs, the monitoring and managing activities of outside investors, the valuation of young ventures, typically used financial claims and contracts applied in start-up and expansion financing transactions, and socio-economic determinants to facilitate access to finance for small and medium size firms in a cross country comparison.
We discuss why start-up and expansion capital in large amounts is nowadays often provided by venture capital and private equity funds and therefore elaborate extensively on the venture capital cycle, on the legal structure of these entities and on their particularities with respect to fees, taxation, and performance. We finally focus on another type of transaction which private equity intermediaries undertake, the buyout of mature companies.
The course provides a framework for understanding and analysing investment and financial decisions of corporations. Lectures and readings provide an introduction to present value techniques, capital budgeting, capital structure decisions, corporate cost of capital, initial and seasoned equity offerings and an introduction to corporate risk management.Hybrid MBA English edition