Entrepreneurship Venture Class 2005
Class Hours: Wednesday . Balmer 302
Reading Packets : Available in RAMs on the Ave from Friday Sept 30th September
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.
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.
Entrepreneurship welcome event at The District.
Assignment: Business plan to take away and assess for 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
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
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.
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
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)
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
Prepare Case: Spiffyterm Inc, January 2000 before class.
Mock VCIC competition
Mid January . Saturday January 21st.