Venture capitalists generally take a leap of faith on a business idea or founder when choosing to invest in a start-up. They have to value a company whose future financial success hinges on an unproven technology or product that hasn’t been commercialized or has yet to generate any revenue. And because of the longer time horizon to profitability and a greater degree of uncertainty of achieving success, venture capital has a risk-return profile that is significantly different from that of a conventional, established business with predictable revenues. As a result, the tools and valuation methods venture capitalists use to assess a business without any tangible assets is different too.
Venture Capital starts with a discussion on how VC funds work, how investments are selected, and how due diligence is conducted. Participants will examine case studies that detail a transaction from beginning to end. In this manner, participants will see how a deal is structured, learn more about the incentives of a VC fund, and gain a deeper understanding of the ways in which VC funds operate. This program will give participants a rigorous process to analyze investment opportunities as a limited partner on a specific deal, or as a passive equity investor looking to invest in a VC fund.
Session topics may include:
- Innovation through new venture creation
- Deal analysis and evaluating investment opportunities
- Deal structure design
- Investment decision making
- Exit strategies
- General partner vs. limited partner, the pros and cons
- Incentives for a VC fund