UNIVERSITY OF WASHINGTON

Entrepreneurship Venture Class 2005

 

Class Hours:     Wednesday 5:30-7:30. Balmer 302

 

Instructor:        Emer Dooley, Mackenzie 250; emer@u.washington.edu;  206 543 4435

Reading Packets : Available in RAMs on the Ave from Friday Sept 30th September

                                   

Course Description

The course provides a survey view of the venture capital world. The goal of the class is to prepare students to act as venture capitalists. We will cover the basics of the venture capital industry through reading, class guests, examining business plans and taking part in the intramural competition in January 2006.

The winners of that competition will go to UCLA March 2-4th to compete for the UW.

 

What exactly do teams do at the VCIC®?
Venture Capital Investment Competition
The nation's premier entrepreneurial strategy competition for top business schools.

Each team plays the role of a mock venture capital firm. Basically, you pretend you have 150 million or so dollars to invest, and real entrepreneurs are coming to you with opportunities.  You get business plans in advance, then meet the CEOS, listen to their pitches, make investment decisions, write term sheets and make an investment presentation to a panel of VCs.


 

 

Class schedule (Subject to change!)

 

VCIC Session outline

Sept 28th Why would you want to enter?

            Format, winners, why…..

            Meet last year’s participants

Meet previous participants:        

·         Ed Hansen, now Alliance of Angels Program Manage

·          Matt Talbot, now with Bristlecone Ventures

·         Shawn Westfall, now with Cascadia Capital,

·         Andy Baldridge, now with Northwest Capital Appreciation

·         Balu Chenicheri, now with Microsoft

 

October 5th  Intro to venture funds I

Read : Venture Capitalists from High Tech Startup by John Nesheim before class.   

The VC business

            How venture funds work; LPs, GPs and returns.

            The players. Big funds, Smaller funds, syndicates and how they work.

            How investment decisions are made. Follow-on investment planning.

            Raising funds and how that affects current fund investment decisions.

            Assessing fund performance.

 

 

October 12th Intro to venture funds II

 

            Quiz on Venture funds.  Introduction of basic terms.

6:30pm Entrepreneurship welcome event at The District.

Assignment: Business plan to take away and assess for October 19th.

 

 

 

October 19th

 

                        The business plan: Finding out the essentials.

Read: “AXON” business plan  before class.

            How do you score a plan without ever meeting the people?

Criteria used that are competition specific. Things to look for.

Key categories (Mgmt team pedigree, market etc..)

Enrique Godreau, partner at Voyager Capital on current investing trends, especially in digital media space, internet infrastructure and open source

 

October 26th

            Valuation

Read: “A note on the valuation of venture capital deals” before class.

            Rules of thumb, current market conditions, examples and comparables.

            How funding works in reality: Terms, syndication and outcomes.

 

Patrick Ennis, Arch Venture Capital

 

 

November 2nd

Introduction to termsheets

Read and prepare case “Trendsetter” before class

 

John O’Halloran will speak Oct 25th at EIC lunch!! He will not be in class on Nov 2nd.

 

November 9th

            Term sheets II

Read “Venture law book chapter 7 on term sheets” before class

Intro to term sheets. Terminology. Current market conditions and impact on the terms . Current rules of thumb and why. Understanding the role of term sheets in mitigating risk.

 

Kristen Nelson. Fluke Ventures

 

November 16th

Assignment: Read WisdomForce business plan in advance.

Discussion of Wisdomforce term sheet assignment.

Frank Artale former CEO of Consera (sold to HP) and Chairman of Rendition Networks (Acquired by Opsware)

 

November 30th

Prepare a term sheet on a business plan (Wisdomforce) you will be given, before this session.

            One-on-one time with VCs to discuss term sheets and deals.

            VCs signed up: Geoff Entress, Madrona Ventures

                                    Travis Hughes, Madrona Ventures

                                    Kevin Barber, Northwest Venture Associates

                                    Melissa Widner, Seapoint Ventures

                                    Mike Templeman, Guide Ventures

                                    Cam Myhrvold, Ignition Partners

                                    Mark Metcalf, Perkins Coie

                                    Chris Brookfield Open Water Ventures

                                    Shaun Westfall, Cascadia Capital

                                   

 

December 7th

            Wrap up

Prepare Case: Spiffyterm Inc, January 2000 before class.

 

Mock VCIC competition

Mid January . Saturday January 21st.