Inside Venture Capital - VC Masterclass
Venture capital is hard. Learn to identify, invest, analyze and value high-growth start-ups the VC way.
Venture capital investing is hard. Even top VCs have failure rates of more than 50% across their portfolios. The difference between success and failure can come down to the performance of 1 or 2 investments out of 30. Venture investors must know how to identify potentially successful ventures, how to structure deals with entrepreneurs and how to generate the high returns that characterize successful venture capital investing. In this course you will learn the key skills for successful VC investment: evaluating high-potential investment opportunities, using financial projections to arrive at proper valuation for start-ups, and structuring and negotiating good investment deals. The course is hands-on, interactive and experiential and the learning can be applied immediately beyond the online classroom.
1 hour live interactive session with Expara Founder and CEO Douglas Abrams (For participants with coupon code)
158 videos - 17 hours of viewing and 78 original articles for reading
Video presentations and slide decks of real start-ups
5 Interactive deal screening, forecasting and valuation exercises with detailed feedback
Detailed financial model video walk-throughs
Pro-forma Valuation Excel Model for start-ups, Start-up evaluation checklist and term sheet template
Expara Academy Certificate of Course Completion
Unlimited lifetime access, 12-month 100% satisfaction guarantee
Why every start-up needs an exit strategy
A message from the instructor
Connecting to my network
About the instructor
READ FIRST: How to complete the course
Course schedule - 6 weeks
Reading list for entrepreneurs and investors
View introduction slides
Download introduction slides
VC Masterclass downloads
VC Question and Answer
View Module 1 slides
Download Module 1 slides
Risk and return
Reading: Risk and return
View Module 2 slides
Download Module 2 slides
Who are the players in venture capital world?
What is an entrepreneur?
Why become an entrepreneur?
What roles do they play?
Small vs Scalable Business
How to build a scalable business
Reading: Who are venture investors?
VC is the highest returning asset class
VC improves portfolio diversification
Top quartile VC managers outperform even more
Reading: Top VC fund managers can consistently outperform
Reading: Why do investors invest in VC funds?
Why venture capital now?
Reading: Is Moore's law over?
Reading: Amara's law
Scalable or lifestyle business?
Reading: Why do start-ups raise money?
How do VCs make money?
VC return distribution - Power law
A few investment generates returns
Reading - How do VCs make money
Reading: - What drives VC fund returns
What kind of company do VCs invest in?
What sectors do VCs invest in?
Which is more scalable - product or service?
Market timing: too early or too late?
Reading: What do VCs invest in?
Reading: Which scales better?
Reading: What is the optimal time to enter a market?
View Module 3 slides
Download Module 3 slides
The investor’s decision tree
Key elements for success
Reading - Key elements of success
Reading - Product market fit or team
Reading - Three most important factors
Innovation and value proposition
Why invest in innovators?
Questions to ask: Innovation and value proposition
Reading - Innovation and value proposition
Reading - Innovators, imitators and idiots
Reading - Is Grab an innovator or an imitator?
Reading - Pain and demand (How does pain drive demand)
Market identification and analysis
Market life cycles and structures
Determining who your customers are
Questions to ask: Market identification and analysis
Reading - What are unit economics?
Questions to ask: Marketing strategy
Sustainable competitive advantage
First mover advantage & last mover advantage
Creating last mover advantage part 1
Creating last mover advantage part 2
Competing with large companies
How startups beat established companies
Opportunities that favor new firms
Reading - Why are you using Whatsapp?
Reading - Why are there only two ride sharing companies in each market?
Reading - First mover disadvantage last mover advantage
Reading - Market leaders dinosaurs small mammals and asteroids
Reading - SCA case study: who was the first mover in personal computers
Questions to ask: Sustainable competitive advantage
Reading - What are the elements of an IP strategy for start-ups?
Reading - Is it possible for someone to steal your start-up idea?
Assignment 1: Assessing product/market fit
List of presenting start-ups
EcoWorth Tech pitch
Let's Plant Meat Pitch
Portier Technologies Pitch
System Stone Pitch
Start-up pitch decks
View Module 4 slides
Download Module 4 slides
In the financial section of the business plan
Reading:- Good business vs good investment
Overview of financial projection
Overview of financial projection - 2
Overview of Valuation
Use of proceeds, exit strategy and ROI
Funding required and equity offered
Reading: What is a business model?
Reading: Why not give up the minimum equity?
Business model innovations
Reading - Disruptive business models
Reading - What is the Gillette business model
How much funding to raise?
How much equity to give up?
How to use fund raised?
Reading: How much to raise
Reading: How much equity to give up
Reading: Use of funds - do founders salaries drive growth?
View Module 5 slides
Download Module 5 slides
What is the difference between a model of something and the thing being modelled?
Is it a waste of time to do financial forecasts for start-ups?
Financial projections will always be wrong but we need to do them anyway
What to do when your model doesn't match reality
Why forecast 5 years? - The modelling dilemma
Why forecast 5 years? - average time to exit
Reading - How is a model different from reality
Reading - Why will financial forecasts always be wrong?
Why start-up founders need to own their financial model
Top-down and bottom-up market sizing
Building the revenue forecast starting with top-down
Top-down market sizing example: Sesame milk
Top-down market sizing example: Plant-based meat - Total addressable market
Top-down market sizing example: Plant-based meat - Target market, segment and share
Bottom up market sizing
Market sizing - anchoring, iterating and converging
Reading - Sizing the market for a start-up
View Module 6 slides
Download Module 6 slides
Why do most valuation methods fail for start-ups?
Pre-money and post-money valuation
Reading - Why do traditional valuation methods fail?
Reading - Valuation methods
Reading: Pre-money and post-money valuation
Reading - Why are there so many unprofitable startups?
Reading - Why don't startups pay dividends?
Valuation with the comparables method
Comparable by stage
Valuation with the DCF method
Why is discount rate the key to the DCF method?
Reading - What is cost of capital and why is it important?
Valuation with the VC method
VC fund returns are not normally distributed
Most VC investment fail to return capital
Where does 30X come from?
Numbers in the VC method: Impact of dilution
Numbers in the VC method - fund investors set the cost of capital
Avoiding common valuation mistakes
Why care about too high valuation?
Reading: Epidemic of overvaluation
Reading: Liquidation preference as valuation insurance
Assignment 2: Connecting financial projections to valuation and the use of funds
View Module 7 slides
Download Module 7 slides
Financial model walkthrough - how to use the model
Financial model walkthrough: adding additional revenue streams
Financial model walkthrough: inputting expenses
Financial model walkthrough: inputs tab - understanding financial statements
Financial model walkthrough - revenue forecast
Financial model walkthrough - top down revenue forecast
Financial model walkthrough - bottom-up revenue forecast
Financial model walkthrough - top down vs bottom-up revenue forecast
Financial model walkthrough - analysing and iterating top-down and bottom-up revenue forecasts
Financial model walkthrough - aligning our financial model with our business strategy
Financial model walkthrough - balance sheet
Financial model walkthrough - accounts receivable
Financial model walkthrough - funding required and shareholder's equity
Financial model walkthrough - what is necessary to finance
Financial model walkthrough - balancing the balance sheet
Financial model walkthrough - income statement
Financial model walkthrough - understanding margins
Financial model walkthrough - analyzing margins
Financial model walkthrough - what expense is always underestimated?
Financial model walkthrough -using comparable data
Financial model walkthrough - adjusting impact of changes throughout the model
Financial model walkthrough - cash flow budget
Financial model walkthrough -the financials sheet
Financial model walkthrough - technical vs fundamental value
Financial model walkthrough - what are free cash flows?
Financial model walkthrough - how is a company like a perpetual annuity?
Financial model walkthrough - what is the time value of money?
Financial model walkthrough - what is the relationship between discount rate and valuation?
Financial model walkthrough: is this valuation correct?
Financial model walkthrough: how much money to raise?
Financial model walkthrough: how much equity to give up?
Financial model walkthrough - what is weighted average cost of capital?
Financial model walkthrough - how to calculate cost of capital?
Financial model walkthrough - what is a start-up's cost of capital?
Financial model walkthrough - terminal growth of free cash flows
Financial model walkthrough - investor ROI and dilution
Financial model walkthrough - follow-on funding
Financial model walkthrough - calculating investor ROI
Assignment 3: Aligning to investors’ interest
View Module 8 slides
Download Module 8 slides
Why every start-up needs an exit strategy
Reading: What two numbers do investors need to calculate their ROI?
Projecting exit valuation
Reading: Calculating exit valuation
Calculating ROI with dilution - example
Reading: Is dilution a good thing or a bad thing?
Which exit strategy is best?
Exit strategy - myth vs reality
Reality - 90% of VC funded exits are trade sales
IPO vs Trade Sales in 2020
IPO Regional vs Major Exchange
Trade Sales vs IPO - Pros & Cons
Assignment 4: How a funding strategy can impact the valuation of a company
View Module 9 slides
Download Module 9 slides
Stage of fund raising & investment process
Why is the multi-stage fundraising process so important?
Reading - VC funding process enables innovation
Reading: What is OM and how much of it do you need?
Reading: What is FF and F?
Reading - Angel or VC or CVC which is best
Reading - The best and worst times to raise money
Getting to investors
Communicating with investors
Reading - How start-ups connect with investors
How to fund growth?
Convertible debt vs equity
Reading: What forms of funding are used by VCs
Reading: What is the difference between debt and equity?
Reading - What is the best form of funding for a start up
Reading: Only a moron starts a business with a loan
Reading: What are convertible and SAFE notes and should we use them
Capital and legal structure of a firm
Reading: Corporate structuring issues for VC investors
Cap Table Overview
Messy Cap Table
What is founder vesting?
Reading: The 7 deadly sins of messy cap tables
Reading - What is founder vesting?
Reading: How should founders split equity?
View Module 10 slides
Download Module 10 slides
5 key agreements in venture capital deals
Reading - Key agreements in VC investment
Reading - Key terms in VC term sheets
Economic terms in term sheets: Part I
Economic terms in term sheets: Part II
An example of how liquidation preference works
Reading: MFN and Pay to Play
Reading: What is anti-dilution protection
Reading: What is redemption
Control terms in term sheets
Reading: How do VCs control startups after investment
Reading: Reserve matters and protective provisions
Reading: Retaining BOD control
Reading: What is a drag-along clause?
Reading: What are reps and warranties?
Reading: What are ROFRs and ROFOs and when are they bad?
Assignment 5: DCF vs VC method of valuation
View Module 11 slides
Download Module 11 slides
Why is valuation so difficult to negotiate?
What really determines startup valuation?
Good deals vs bad deals
Why you should never sell more than 50% of your company
Deal red flag - Get more information
Deal red flag - Never do; Run Away
Reading: Why you should never sell less than 100% in an M&A
Understanding VC psychology
It's not what you know; It's not who you know
What are investors buying?
This is the only slide you need to raise.
The best fund raising pitch ever
The check is in the mail
Three key takeaways - Understanding VC Psychology
View Module 12 slides
Download Module 12 slides
Why CVC and why now
VC is hard, but CVC is harder
Alignment of interest makes CVC even harder
What do you need to succeed?
Challenges in CVC
Negative perceptions of CVC
Divergence of interests
Big corporate versus small start-up
The best VC funds may not want CVC investors
Aligning team interests
CVCs are the Devil - Fred Wilson
Approaches to CVC
CVC approaches - Adding value for startups
CVC best practices - investment strategy
CVC best practices - key recommendations
CVC best practices - team
Case Study – Corporate Venture Capital
Case study - Saudi Aramco and Corporate Venture Capital
Download all slides
As an active VC investor in SEA since 2003, our programs and courses are all based on our real-world experience. We are better educators because we are active investors. And we are better investors because we are active educators.
Start-up CEOs and Founders share their experiences
|What you get||Value|
|VC Masterclass course||$500|
|Live advisory and mentorship||$850|
|Exercises and detailed feedback||$1500|
Get unlimited lifetime access now for 80% off. Only$49.95 monthly for 12 months or pay one time $480 (20% additional discount)
Satisfaction or your money back
Join the 800+ investors who have learned how to evaluate, price and invest in winning start-ups. 80% savings. 100% money-back guarantee. Secure checkout. Pay one time or buy now and pay later.