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TOC
Project Outline
Deliverables
Presentations
Examples
Startup Funding
How Startups get Money
Friends and Family
Consulting/Work on the side
Angels - Individuals or in groups (e.g. Walnut or Common Angels)
Venture Capital - Organized as funds - two sided (e.g. North Bridge or NEA)
Incubators/Seed funding companies (e.g. Y-Combinator or TechStars)
Crowdfunding (e.g. KickStarter)
(Banks)
Venture Capital
What is a VC firm?
A “firm” that stands between two constituencies
“Limited Partners”
Organizations like Universities or Pention Plans
Who need to “manage” a large sum of money
They allocate portions of their funds to different investment types
One of the investment types is “venture capital”
Considered high risk and very long term
Startups and other businesses who need money
New teams looking to raise capital
Previously funded teams who need more capital
Existing companies who are established and need more capital.
“Value add” of VC firm
Locating the best investments into a portfolio of investments
Managing the portfolio companies for best outcome
Over 7 years goal is
10% companies are 100+x successes
40% companies do “ok”
40% fail outright
VC pools “Limited Partner” funds into numbered Funds
Each VC will choose an appropriate size fund.
What is the process?
Rounds of investment
How valuation changes
Term sheets
Liquidation preferences will turn your hair grey.
Ideal First Round Funding Terms
Founders have an idea - investors have money
It’s a contract between founders and investors
Rounds of financing
What is a round
How does it end? Liquidity Event
Seed/Angel, A-Round, B-Round, … IPO or Acquisition
Let’s work an example in google sheets
What you negotiate over
Valuation and Investment amount are the key parameters
How term sheets turn into “deals”
What’s a seed deal?
Should you or shouldn’t you?
What are VC firms really?
General and Limited Partners
Why do people love/hate vcs?
Welcome
2018 Syllabus
Calendar of Lectures and homeworks
Resources
Lectures
Pilot Project
Welcome!
Lean Startup
Hypotheses
Working on Teams
MVP
Guest Lecture: Michael Skok
Pilot Project Conclusion
Term Project: Startup
Welcome to Term Projects!
Build Measure Learn
Project Planning
The Pivot
The Engine of Growth
Mockups & Prototypes
Testing Techniques
Term Project: Product
Product Market Fit
Jeffrey Beir: Metrics
Business Models
Pricing Models
Andy Payne: Startup Finance
Intellectual Property
Term Project: Business
Finance for Geeks
Founding a company
Real World Survival Kit
Management and Leadership
Dulcie Madden: Startup Teams
Last day converstation
Term Project
Term Project Outline
Minimum Viable Product Info
Hypotheses
Final Presentations
Background
Learning Goals
Grading
Teachers
Lexicon
Interesting links
Credits and acknowledgements