Descriptif

COURSE OUTLINE: 

1)     Venture Capital: the basics

1. Definition of VC and start-up
2. What do we really invest in?
3. The fundamental questions when analysing start-ups at a very early-stage
4. What about the financials?

2)     Enterprise Valuation

1. Definitions
2. Roles of Valuation
3. The Classical Theory: Discounted Cash Flows or Net Present Value
4. The Modern Methods for developed businesses: the Multiple approach

3)     Start-up Valuation

1. Living in a world where financial methods don’t work
2. The key principles to never forget
3. The seed case: when only ideas are on the table
4. The central case: when sales rocket but profitability is still unseen
5. Forward thinking: what could we expect as an exit value? Role in the present valuation assessment
6. The main risk of using the Price to Sales ratio
7. How to modify a valuation over time: the idea of sharing value depending on exit price

                                                               i.      Preferred Shares

                                                             ii.      Options for the investors

                                                           iii.      Options for the founders & employees

1. Follow-on rounds and impacts on valuation, proceeds waterfall etc.
2. Investment Processes in VC

4)     Risk Management: the portfolio and the partnership approach

1. Why should an investor always consider a portfolio rather than a single (or very limited number of) investment?
2. What should an investor look in a partnership?
3. Investment strategy and portfolio management
4. Examples of strategies and impact on the performance
5. Decision making process and managers compensation