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Venture capital workshops

VC5x Venture Capital Workshops

Raising money to fund a new venture involves entrepreneurs and investors in a challenging and critical process.  In order to successfully scale, most new ventures will need to seek outside funding from venture capitalists or angel investors.  Therefore it is critical for entrepreneurs to have an understanding of venture financing from the investor’s perspective.  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.

This workshop is designed to provide participants with an understanding and working knowledge of both sides of the new venture funding process:  that of an entrepreneur raising funding and of an investor in new ventures.  The course is structured as an experiential learning simulation in which each student team will play the role of a venture capital fund identifying, evaluating and investing in real-world start-up companies. Some of the skills developed will include how to: 

  • Identify new venture investment opportunities,
  • Project revenue cash flows for new ventures,
  • Value a new venture,
  • Raise money to support the growth of a business,
  • Structure a venture capital investment and portfolio, and
  • Generate returns from venture capital. 

Workshop structure

The course can be taught over one, two or three days.  During the workshop sessions participants 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 learn how to develop a portfolio strategy for a venture capital fund.

Our hands-on approach enables participants to immerse themselves in a simulated venture capital investment context. Participants will gain practical experience in applying the knowledge acquired and further develop key skills and strategies for success

The workshop empowers participants with the ability adopt both the perspective of the investor and entrepreneur. Participants will be able to evaluate the attractiveness of a startup business/financial plan as an investment proposition as well as understand the impact of the investment deal terms on both the entrepreneur and investor.

The activity segments of the workshop feature Expara’s award-winning VC-Start-up Negotiation Experiential Exercise Investment which involves strategy, persuasion and skill. Players adopt the role of either VC investors or investee companies. Players will compete within and between roles to structure key investment deal terms, identify the other party’s interests as well as devise strategies to negotiate for optimal outcomes.

Topics covered in the workshop will include:

  1. VC mindset
    1. The key players in venture financing
    2. Why companies raise investment
    3. Why investors invest in venture capital
    4. How a VC fund works
    5. Returns on VC investments
  2. Risk and return
    1. Understanding risk and return
    2. Dealing with fear and the importance of failure
  3. Evaluating scalability
    1. Product versus service
    2. Key elements for success
    3. Value proposition and innovation
    4. Market opportunity
    5. Competitive strategy
  4. Evaluating start-up business models
    1. Innovation business models
    2. Revenue models and cost structures
  5. Forecasting revenue, expenses and cash flow
    1. Creating financial forecasts for start-ups
    2. Top down and bottom up revenue forecasts
  6. Valuing start-ups
    1. Using comparables
    2. Discounted cash flow (DCF)
    3. VC method
    4. Pre-money and post-money valuation
  7. VC investment process
    1. Due diligence issues
    2. Key agreements
    3. Exit strategies
    4. Stages and sources of funds
    5. Calculating investment ROI including dilution
    6. Cap tables
    7. How does a VC fund work?
    8. Key terms of VC fund agreements
    9. VC fund portfolio strategy and ROI
    10. VC fund investment strategy
  8. Term sheets and deal structure
    1. VC and entrepreneur interests
    2. VC and entrepreneur sources of power
    3. Key elements of a venture deal
  9. Investor entrepreneur negotiations

Learning tools

The following learning tools will be provided to participants:-

  • Financial Plan Template
  • Financial Plan Guideline

 

Workshop Schedule (3-day program)

Day 1

9:00 AM

VC Mindset – risk and return I

10:30 AM

Break

10:45 AM

VC Mindset – risk and return II

12:30 PM

Lunch

1:30 PM

Evaluating scalability

3:00 PM

Break

3:15 PM

Evaluating start-up business models

4:00 PM

Idea pitches

De

5:00 PM

End day 1

Day 2

9:00 AM

Group presentations

10:30 AM

Break

10:45 AM

Forecasting revenue, expenses and cash flow

12:30 PM

Lunch

1:30 PM

Valuing start-ups

3:15 PM

Break

3:30 PM

Group work

5:00 PM

End day 2

Day 3

9:00 AM

Financing and fundraising process

10:30 AM

Break

10:45 AM

Term sheets and deal structure

12:30 PM

Lunch

1:30 PM

VC-startup negotiation exercise briefing

2:15 PM

VC-startup negotiation team strategizing

3:00 PM

Break

3:15 PM

VC-startup negotiation exercise

4:30 PM

VC startup negotiation game debrief

5:00 PM

End day 2

Workshop Schedule (2-day program)

Day 1

9:00 AM

VC Mindset – risk and return I

10:30 AM

Break

10:45 AM

VC Mindset – risk and return II

12:30 PM

Lunch

1:30 PM

Evaluating scalability and start-up business models

3:00 PM

Break

3:15 PM

Forecasting revenue, expenses and cash flow and valuing start-ups

5:00 PM

End day 1

Day 2

9:00 AM

VC investment process

10:30 AM

Break

10:45 AM

Term sheets and deal structure

12:30 PM

Lunch

1:30 PM

VC-startup negotiation exercise briefing

2:15 PM

VC-startup negotiation team strategizing

3:00 PM

Break

3:15 PM

VC-startup negotiation exercise

4:30 PM

VC startup negotiation game debrief

5:00 PM

End day 2

Workshop Schedule (1-day program)

Day 1

9:00 AM

VC investment: why and how I

10:30 AM

Break

10:45 AM

VC investment: why and how II

12:30 PM

Lunch

1:30 PM

VC-startup negotiation exercise briefing

2:15 PM

VC-startup negotiation team strategizing

3:00 PM

Break

3:15 PM

VC-startup negotiation game

4:30 PM

VC startup negotiation game debrief

5:00 PM

End