Validating Business Models & Early Finance

This unit guides students from idea toward a testable, legally sound, and fundable early-stage venture. Students will validate value propositions and channels, select appropriate legal and funding structures, and build basic financial forecasts and tests that prepare the venture for launch and future scaling.

Learning Objectives

• Analyze customer segments, benefits versus features, value chains, and competitive intelligence to define a clear value proposition and target market
• Apply lean testing and rapid prototyping methods to design and run experiments (MVPs, surveys, channel tests) that validate key business model assumptions
• Demonstrate the ability to prepare basic pro forma financial statements, create a spending forecast, and compute key financial ratios to assess early-stage viability
• Evaluate legal entity options, early funding sources, intellectual property considerations, advisory governance, and risk mitigation strategies to recommend an initial launch and exit approach