Venture Capital Funding - University
A university-level full semester course on venture capital. Contact us for special educational pricing.
Students will evaluate investments in new ventures, create a forecasted financial plan and valuation for an early-stage business venture, engage in simulated investment presentations and negotiations between entrepreneurs and investors and will develop a portfolio strategy for a venture capital fund. Through this course, students will learn to look at new venture funding issues both from the perspective of a venture capital investor and that of a scalable entrepreneur. Students working in groups will act as a venture capital fund to evaluate and structure an investment into an early-stage, high-growth company. The potential investee companies will be actual start-ups from the region. The students will develop a financial model, valuation and term sheet for the company. The course will include live sessions, on-line videos and readings, experiential exercises, in-class student presentations, and discussions.
30 hours of live sessions with Expara CEO Douglas Abrams
78 videos - 15 hours of viewing and 61 original articles for reading
Live start-up pitches
4 interactive graded assignments
Expara's award-winning VC-Start-up negotiation exercise
Pro-forma Valuation Excel Model for start-ups
Start-up evaluation checklist and term sheet template
Expara Academy Certificate of Course Completion
A message from the instructor
About the instructor
Connecting to my network
READ FIRST: Course Overview and how to complete the course
Course schedule
Course submissions and milestones
About Expara
Reading: Can entrepreneurship be taught?
Reading list for investors
Course submissions and milestones
What is the relationship between risk and return?
Risk and return
Why fear risk?
Risk and return - Small versus scalable business
Overcoming the fear of failure
Reading: Risk and return
Reading - Two types of entrepreneurs
Reading - Fear and failure
Welcome to venture capital world
Highest returning asset class
VC is the highest returning asset class
VC improves portfolio diversification
Reading - Why do investors invest in VC funds?
Reading - Top VC fund managers can consistently outperform
Why VC now
Why venture capital now
Reading - Is moores law over?
Reading - Amaras law
Scalable or lifestyle business?
Why should startups raise investment?
Reading - Why do start-ups raise money?
How to fund growth?
Which form of funding is best?
How to fund growth
Reading - What is the best form of funding for a start up
Reading - Only a moron starts a business with a loan
Reading - What is the difference between debt and equity?
This could be you
This could be you
Success from failure
Success from failure
Reading - Success from failure
Reading - What percentage of start-ups really fail?
Reading - Why do so many start-ups fail?
Reading - Why is it good that so many start-ups fail
Reading - Do difficult things
What kind of companies do VCs invest in?
How do VCs generate returns?
Which one is more scalable- product or service?
What sectors do VCs invest?
Reading - What do VCs invest in?
What kind of companies generate high returns?
Reading - Which scales better?
Reading - Good business vs good investment
Reading - What is the optimal time to enter a market?
The investor’s decision tree
The investor’s decision tree
Key elements for success
Key elements for success
Reading - Three most important factors
Reading - Product market fit or team
Reading - Key elements of success
Communicating with investors
Investor and start up communication
Reading - How to connect with investors
Exercise: Start-up pitches
Defining innovation
Innovation and value proposition questions to ask
Innovation and value proposition questions
Why invest in innovators
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)
Choose a market favourable to start ups
Market life cycles and structures
Market identification and analysis
Determining who your customers are
Market identification and analysis questions
Sizing the market
Top-down and bottom-up market sizing
Reading - Sizing the market for a start-up
CLV vs CAC
Product differentiation
Market positioning
4 Ps
Marketing strategy questions
Reading - What are unit economics?
Sustainable competitive advantage
How startups beat established companies?
Competing with large companies
Sustainable Competitive Advantage (Market Leaders, Dinosaurs, and Small Mammals)
Sustainable competitive advantage questions
Creating last mover advantage
Reading - First mover disadvantage last mover advantage
Reading - Why are you using Whatsapp?
Reading - Why are there only two ride sharing companies in each market?
Reading - Market leaders dinosaurs small mammals and asteroids
Strategies to create advantage
First mover advantage & last mover advantage
Reading - SCA case study: who was the first mover in personal computers
IP strategy
IP strategy
Reading - Is it possible for someone to steal your start-up idea?
Reading - What are the elements of an IP strategy for start-ups?
Investment selection assignment
In the financial section of the business plan
Why do we need a financial plan?
Financial projections - financial section of the business plan (2)
Valuation - financial section of the business plan (3)
Business Model - The financial section of the business plan (1)
Business model - how will you make money?
Key revenue model issues
Reading - What is a business model?
Business model innovation
Business model innovations
Reading - What is the Gillette business model
Reading - Disruptive business models
Create financial projections
Download: Financial projection and valuation model
Why forecast 5 years?
Starting with revenue forecast
Top-down market sizing example - Plant-based meat
Top-down market sizing example - Sesame milk
Bottom up market sizing
Introduction to Revenue forecast in Excel
Why is the top-down forecast different from bottom-up forecast?
Mistakes startup CEOs make
Reading - Why will financial forecasts always be wrong?
Financial model explained 1
Financial model explained 2
Financial model explained 3
Balance sheet
Income statement 1
Income statements 2
Cash flow budget
DCF valuation model
Financials and DCF Valuation
Weighted average cost of capital
Valuation in financial modelling
Dilution schedule and investor ROI
Reading - Why are there so many unprofitable startups?
Reading - How is a model different from reality
Why do most valuation methods fail for start-ups?
Why do most valuation methods fail for start-ups?
Reading - Why do traditional valuation methods fail?
Company valuation methods
Comparables
Methods of valuation - comparables
Discounted cash flow valuation
Methods of valuation - discounted cash flow
VC method
Methods of valuation - VC method
VC method valuation explained
Where do the numbers in VC method valuation come from?
Reading - What drives VC fund returns
Key valuation issues
Reading - Epidemic of overvaluation
Reading - Why don't startups pay dividends?
Reading - What is cost of capital and why is it important?
Exit strategy and ROI
ROI and dilution
Calculate investor's ROI including dilution
Exit strategy and ROI
Reading - How do VCs make money
VC investment process
Capital and legal structure of the firm
Equity issued to whom
Key legal agreements
Why is the multistep fundraising process so important?
The start-up fundraising journey
Reading - VC funding process enables innovation
Reading - VC or Angel or CVC which is best
Reading - Who are venture investors?
Reading - What is FF and F?
Reading - What is OM and how much of it do you need?
Reading - The best and worst times to raise money
Capital and legal structure of a firm
5 key agreements in venture capital deals
Reading - Key agreements in VC investment
Reading - Why not give up the minimum equity
Economic terms in term sheets: Part I
Economic terms in term sheets: Part II
Control terms in term sheets
An example of how liquidation preference works
What is founder vesting
What does a clean cap table look like
Convertible debt vs equity
Key elements of the deal
Reading - Key terms in VC term sheets
Reading - Liquidation preference as valuation insurance
Cap tables
Reading: The 7 deadly sins of messy cap tables
Reading - What is founder vesting?
Download: Term sheet template and term sheet alternatives
Reading: How do VCs control startups after investment
Reading: Corporate structuring issues for VC investors
Reading: What forms of funding are used by VCs
Reading: What are convertible and SAFE notes and should we use them
Reading: Reserve matters and protective provisions
Reading: Retaining BOD control
Reading: What are reps and warranties
Reading: What is a drag-along clause
Reading: MFN and Pay to Play
Reading: What is redemption
Reading: What is anti-dilution protection
SAFE notes
Reading: What are ROFRs and ROFOs and when are they bad
VC-start-up negotiations
VC startup negotiations
VC - startup negotiation game briefing
Key terms of venture capital funds
Economics of a VC fund
How a VC fund works
VC fund portfolio strategy issues
VC_fund_portfolio_strategey_issues
VC fund portfolio strategy questions
Nokia disrupted
Who will be disrupted next?
VC is hard but CVC is harder
Alignment of interest makes CVC harder
What do you need to succeed?
CVC: offensive and defensive weapon
Why CVC and why now
Financial analysis and term sheet assignments
Final exercise