AC6108
Venture Capital &
Private Equity
Dr. Geraldine Ryan
Class timetable
Monday 9-11 WGB G01
Lectures on bank holidays will be rescheduled
Office hours: Email:
Contact • g.ryan@ucc.ie
Details • Monday 12-1
Sources of Funding
Business Planning
Module Valuation of Early-Stage Businesses
Content
The VC investment process
Harvesting: the Exit
Lectures
• Lecture Notes on canvas
Lecture
Material
Cases
• Cases & Readings will
be posted on canvas
Coursework:
• Essay: 1,500 Words: 20%
• Presentation: 10%
Assessment • Due 4th & 11th March
End-of-Semester
Exam:
• Answer 2 out of 3 questions:
70%
THE TRIPLE
BOTTOM LINE
HBS (DEC 2020)
Reading: On Canvas and at
https://online.hbs.edu/blog/post/what
-is-the-triple-bottom-line
Question
• A stakeholder is any individual or group that has
a vested interest in a company.
List all the stakeholders in a business?
• A stakeholder is any individual or group that
has a vested interest in a company.
• In a typical company
• The shareholders and creditors provide the
Stakeholder capital and financial resources to finance the
company’s activities
Groups • The board of directors
• The managers
• He employees
• The customers
• The suppliers
• The government and regulators
Question
What is each stakeholders purpose/
function (e.g. provide money)?
What does each stakeholder want?
• Shareholder theory
• Shareholders elect a board of directors who then hire
managers to serve the interest of shareholders
Shareholder • The interest of other stakeholders - creditors, employees,
customers, and society - are considered only to the extent
vs that they affect shareholder value
Stakeholder
Theory • Stakeholder theory
• Argues that corporate governance should consider
the interests of all stakeholders.
• Makes ESG an explicit objective of board of directors
and management.
Shareholder vs Stakeholder
Theory
Stakeholder theory Challenges
• The complexity of balancing multiple objectives
• A lack of clarity on how non-shareholder
objectives are defined, measured and balanced
• The challenge of competing globally when
competitors may not face similar constraints
• The direct costs of adhering to higher ESG
standards
Question
• In today’s world of business which do you align with…
Stakeholder or shareholder theory?
Why?
ESG
Three Pillars of SDGs
E
CFA & Climate Change
• https://www.youtube.com/watch?v=t9L4tyyB44o
E
S
Equifax: https://www.youtube.com/watch?v=Y1BwWYVYS2E
Facebook & Cambridge Analytica
https://www.youtube.com/watch?v=5Swqc2NjEXM
G
Six Method for Considering SDGs
https://www.youtube.com/watch?v=qU3aDpgI-so&list=PLyb914Gh-VVxsXQppUeo
Nl2yk8EPg_apc&index=2
1. Exclusionary screening
2. Best-in-Class (aka positive screening)
3. Active Ownership
4. Thematic Investing
5. Impact investing
6. ESG integration
Do we live in a world that puts ‘profit over purpose’?
“In many situations, it's possible to do the right thing and make money at the
same time,” Harvard Business School Professor Rebecca Henderson
“Indeed, there's good reason to believe that solving the world's problems
presents trillions of dollars' worth of economic opportunity.”
DOING WELL BY DOING GOOD
NISOLO: THE TENSION BETWEEN BUSINESS
PERFORMANCE AND SOCIAL IMPACT
Understand the complex balance between business demands and goals.
Recognize that trade-offs can occur between the “multiple bottom lines” of an enterprise.
Appreciate that without business success, a social enterprise cannot meet its desired social
obligations.
Comprehend the complexities of social enterprises doing business within multiple
countries and cultures.
LEARNING OUTCOMES
Ethically Made Shoes & Accessories — Nisolo
'The True Cost' - Official Trailer - YouTube
Nisolo Story – YouTube
Task: Recommend Specific Steps That Woodyard Should Take To Ensure The
Company Is Able To Grow, While Meeting Its Triple Bottom Lines
1. Discuss the tension between the triple bottom lines (social, environmental, and financial) for
Nisolo. Specifically, what, if any, trade-offs do you see between the financial and social bottom lines,
at each stage of Nisolo’s development?
2. Nisolo has gone through challenges in its growth over the past few years. Have the recent changes
in leadership, systems, and structure that Woodyard put in place prepared Nisolo to become a product
leader in the industry?
3. What recommendations can you offer to Nisolo as a social enterprise to ensure that they maintain
strong outcomes for all three bottom lines?
4. As Nisolo enters new countries to its supply chain, how can it ensure consistency?
