Short Course Description
This course will provide students with a deep understanding of the venture finance industry and financing types along the funding continuum from angel investing, venture capital, and private equity funds. Although our model will be the US market where the venture finance industry originated, we will also focus on, and highlight, the idiosyncrasies of the Israeli market. We will examine each type of funding from various perspectives including the entrepreneur, fund-- or general partner-- manager, and limited partner (to the extent there are) so that the student acquires a 360 degree understanding of each. This view will include fund structure and fund-raising, the relationship between general and limited partners, operational issues, evaluating opportunities and investment decisions, post investment activities and value creation, and value realization (exit). Particular attention will be paid to understanding valuation issues, cap tables, funding rounds, and term sheets, the foundation of the actual investment.
For the entrepreneurs among us, you will receive insights into the VCs perspective that will help guide you in more successfully understanding the fundraising process and thus help you to more successfully raise capital. We will also examine the nature of the relationship between investors and entrepreneurs to better understand how to ensure the proper and successful alignment of interests.
Lastly, integrated into the venture material are several essential and fundamental legal topics including, founder?s agreements, fund structure, term sheets, valuation, cap tables, and due diligence
To achieve these goals, the course will combine lectures, case studies, and some highly regarded guest lecturers from the investment community who will share their vast experience with the students, and give the students the opportunity to network with these industry luminaries. The case studies will illustrate the application of the ideas learned in the real world. By doing the exercises you will gain practical experience dealing with real issues related to market research.
The group will be divided into, and work in, teams over the course of our time together, particularly in working on and submitting the select number of case assignments that illustrate important concepts of startup funding with a practical application. Through this, and via some guest visits by startup companies, each team will have the opportunity to simulate the funding process as a VC investment manager.
Students are expected to attend class regularly and participate in class discussions as this will be a key factor in the final grade.