The document discusses venture capital and provides examples of companies that have reached valuations of over $1 billion (the "Billion Dollar Club"). It then covers topics such as the structure of venture capital funds, common valuation methodologies used in venture capital like discounted cash flow analysis and multiples, how deals are structured between investors and entrepreneurs, and provides a case study of the venture capital funding rounds for Make My Trip.

1. An Introduction To Venture Capital Anand [email_address] Shailesh [email_address]

3. The Billion Dollar Club

4. The Billion Dollar Club Airbnb is definitely in the club . The crowdsourced marketplace for turning your apartment into a hotel for a night grew 800 percent last year in nights booked to 800,000. There are currently 60,000 listings, and bookings keep growing by 40 to 50 percent a month. Sublets are next .

5. The Billion Dollar Club Square is also in the club . It is raising at least $50 million. Square passed 500,000 card readers and 1 million transactions in May, and is processing more than $3 million a day in mobile payments. COO Keith Rabois told us at Disrupt NYC that Square will do $1 billion in transactions this year, and he thinks it could ultimately do better financially than Paypal (where he was an early executive).

6. The Billion Dollar Club Dropbox , the Y Combinator file-sharing startup that only ever raised $7.2 million might end up with the largest valuation in the club, perhaps as high as $1.5 billion or $2 billion. It’s just growing like crazy, with 25 million users saving 200 million files daily. That’s up from 4 million users 18 months ago.

7. The Billion Dollar Club Gilt Groupe is already in the club. It closed a $138 million round at about a $1 billion valuation last May. One of the first companies to introduce online flash sales in the U.S., Gilt is on track to do $500 million in revenues this year and has expanded from fashion to food , travel , local deals , and more.

8. The Billion Dollar Club Gilt Groupe is already in the club. It closed a $138 million round at about a $1 billion valuation last May. One of the first companies to introduce online flash sales in the U.S., Gilt is on track to do $500 million in revenues this year and has expanded from fashion to food , travel , local deals , and more.

9. The Billion Dollar Club Just above this group, is Pandora (which just went public with a $2 billion market cap), LivingSocial (with a $3 billion valuation), LinkedIn (already public, with a $6.3 billion market cap), Twitter (which is worth anywhere from $3.7 billion to $10 billion ), Zynga (which will be worth north of $10 billion when it goes public), Groupon (which could be worth more than $25 billion ) and Facebook (which is already worth $50 billion and could go as high as $100 billion by the time it IPOs).

10. Apple

11. The Billion Dollar Club-Google

12. Multiples will change with maturity

13. What is Venture Capital?

16. Source : Erasmic Fund Fund Raising Pattern – Life Cycle of a Startup

18. How VC ’s work Investor Investor Investor VC fund Investor Startup Startup Startup

22. Stages of Investment

23. Stage vs. Return

25. Valuation Methodologies

29. DCF Example – Company A

32. Valuation in Venture Capital

37. Stake and Investment Lifecycle What do we need to optimize? Size of the circle or Promoter Stake?

38. Valuation Soft Parameters ‘ We want to raise money and hire some people and build the product. Of course, we will start with market research’ ‘ We have burnt the midnight oil for last two years to research this need, built the product and have left our jobs a few months ago because we just had to get started’

39. Valuation Soft Parameters “ We will hire a sales head as soon as we get set. We don’t mind even hiring a CEO” ‘ Here is the Sales Head, my co-founder, and I remain the CEO till the company is large enough to attract a professional ’

40. Deal Structuring

47. Case Study: MMT

49. Make My Trip Ownership