ET5216 VENTURE CAPITAL INVESTMENT & PRACTICES

This course helps you understand how to value startups, corporate ventures, and commercial projects by exploring different valuation models to secure Venture Capitalists (VC) funding. It is also intended to help you to begin with the end in mind. As you develop your startup for investment potential from the early stage, you are now more likely to have a desired outcome at the end. Besides gaining a theoretical understanding of venture capital investment, you will gain first-hand perspective and guidance from practitioners. You will put on two different hats to understand venture capital investment from the perspectives of both the founder and the investor. In addition, you will learn how VC firms take an active role in the startups' performance; guidance, expertise, and industry connections can be just as valuable as financial capital. This course enhances your understanding of venture capital investment term sheets and investment agreements, which covers important facets of the VC financing process : economic issues such as the valuation given to the company (the higher the valuation, the less dilution to the entrepreneur); control issues such as the Board of Directors composition and reserved matters, approval or 'veto' rights the key investors will enjoy; and post-closing rights of the investors, such as the right to participate in future financings, senior management appointment, information rights, etc. VC's post investment roles, commitments, and contributions to the investee's growth and its exit strategy. The course also examines a few real-life venture capital investment deals. You will identify best practices and draw lessons from actual cases to deepen your knowledge and skills in VC investment.