MODULE 2.5: Investment Basics

Summary and objectives

Any company makes investments and finances its operations with funds, and startups generally need of investors in order to start running.
This module is targeted at giving a clear idea of types of investments and investors there are and introduces the student to rates of return as the key when deciding to investment.
Therefore it goes into explaining how to calculate rates or return and what aspects affect the expected return on a given investment, including risk, time, inflation, transactional costs and opportunity costs.

Expected learning outcomes

This module will allow the student to identify:

  • Ways to calculate rates of return.
  • The influence of risk on investments.
  • Elements to consider in order to make an investment.


Investment, risk, rate of return, profit, loss, time, tolerance, debt, owner, financial, capital, bank, lender, business angel, venture capital, corporate, fund, crowdfunding, incubator, government, expectation, compound, future value, net present value, discount rate, internal rate of return, weighted average cost of capital, WACC, NPV, IRR, RoR, ratio, inflation, opportunity cost, transactional cost,

Content Organisation