SOI-071 Venture Capital Funding

Instructor Pablo Soler Bach
Modality In presence
Duration 6 hours
Period First semester

11.12 h17-19
14.12 h17-19
18.12 h19-21

Course objectives

Venture capital financing and coaching are the inseparable tools to convert groundbreaking ideas into successful companies that can change the world, yield exceptional returns, generate employment and provide innovative services and excitement to all stakeholders and the broader community.
Either from the investor’s end or from the entrepreneur’s perspective, this course is a fascinating journey through entrepreneurship, venture capital investing, negotiation, strategy and business development. With an eminently practical approach, you will be learning through real cases built on real stories.
The course will provide you with the technical toolkit to structure a VC deal in its various financing rounds, making you aware of the key issues in this type of transactions. We will also address qualitative matters such as how to best approach a process of fundraising for your new venture, if you are an entrepreneur, how to assess new business opportunities if you are the principal at a VC house, or how to negotiate with your counterparties from any end of the table.

Content summary

 Introduction to Venture Capital (VC)– how the funds operate and how they assess and value companies and their investment pitch to investors
 Opportunity assessment and due diligence – “Vallhala Partners due diligence” case
 Investment term sheets and Negotiation – Magic Box – negotiation role play
 Value creation and exit – “Flipkart: Valuing a Venture Capital-funded Startup” case
 Venture Capital vs Corporate Venture Capital vs Private Equity – Latest trends in VC – Guest speaker “working in Venture Capital”
 Groups pitch deck presentations and VC investment decision reports

Teaching methods

Lectures, cases, role-play and teamwork



This Week in Startups  (Sequoia Capital, one of the world’s largest VCs) (Alpinvest, one of the world’s largest investors in PE)
Nikoskelainen, Erkki & Wright, Mike, “The Impact of Corporate Governance Mechanisms on Value Increase in Leveraged Buyouts”
EVCA, “Six key misconceptions regarding buy-outs”
Wright, Mike et al, “Management Buy-outs 1986-2006 Past Achievements, Future Challenges”, Centre for Management Buy-out Research, June 2006
EVCA, “Private equity fund structures in Europe”, June 2006