Entrepreneurship
Venture Class 2005
Class Hours: Wednesday
Instructor:
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
·
Matt Talbot, now with Bristlecone Ventures
·
Shawn Westfall, now with Cascadia Capital,
·
·
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.
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.