This module aims to provide a seamless integration of academic conceptual foundations and applied experiences. The module can be considered in two 6-week blocks. The first block focuses on early-stage, entrepreneurial finance where the candidates are introduced to company formation, equity splitting and company valuation. Included in this will be an examination of the role investors play in nudging founder teams to dynamically reassess their relative ownership positions. This block will examine the role of angel investors, corporate accelerators and incubator structures and their interaction with the financing decision. In the second block, the focus will be on financing models and their associated bottlenecks when undertaking changes in energy, food and transport systems. Candidates will develop an appreciation of the structures used to finance change - from sometimes wholly private instruments within the category of sustainable finance to large-scale infrastructure projects financed via public-private partnerships.

This module provides detailed insights on the role finance plays in influencing system change, including the following: Introduction to entrepreneurial finance; Identifying when to raise money and quantifying uncertain value; Finance and the term sheet and its impact on the cap table; How venture capital funds work and issues at different financing stages; Introduction to the functional perspective on the global financial system; Developing an understanding of regulatory or other institutional arrangements are most efficient/effective for dealing with the financing requirements necessary for (i) a rapid reduction in GHG emissions and (ii) the protection and restoration of biodiversity. In line with the European Green Deal priorities and in particular with the EU biodiversity strategy for 2030 and the 2030 climate target plan, the course will provide insights into the tools, methodologies and knowledge required to unlock the financial flows to support the implementation of the EU strategy for financing the transition to a sustainable economy, how to implement the sustainable finance taxonomy, thus contributing to mainstream biodiversity, ecosystem services and natural capital in the society and economy.

On successful completion of this module, students will be able to: • Differentiate between the conventional finance arrangements and innovative design principles included in sustainable finance solutions • Demonstrate a detailed understanding of key aspects of early stage finance; including terms in a term sheet, negotiation priorities, capitalization tables, and convertible debt instruments • Apply valuation procedures for system change, comparing conventional project appraisal with new finance that accounts for tipping points in systems (energy, food, transport) • Critically evaluate residual risks for counterparties involved in public-private partnerships • Formulate an appropriate term sheet and identify its impact on second and subsequent finance rounds

On successful completion of this module, students will be able to: • Demonstrate an appreciation of the key concepts around economics and the role the finance raising process plays in defining business model and scale • Demonstrate an appreciation of the wide-ranging benefits of innovative financing structures for policy goals and generating system change impacts

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Students will be taught in a series of lectures and tutorials. The lectures will initially present theoretical concepts and then illustrate their applicability using examples from current cases on how finance has been deployed to scale system change. This module will develop courageous and agile learners by exploring these concepts and applications along with the practicalities of the venture and the investment process. The tutorials expand upon the quantitative elements of the course and allow the students the opportunity to discuss and debate the lecture material. In addition, the tutorials and lab sessions allow the students to focus on the practical application of many of the theoretical concepts.