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San Diego VC Case Competition: Workshop 2: Due Diligence

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Presentation from the Due DIligence I workshop

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San Diego VC Case Competition: Workshop 2: Due Diligence

  1. 1. Workshop 2: Due Diligence I 2019 San Diego Venture Capital Case Competition
  2. 2. UNIVERSITY GROWTH FUND Agenda • Welcome • Business Model & Strategy • Markets • Competition • Review Deadlines and Deliverables • Team Workshop w/UGF Associates • Close Proprietary and Confidential 2
  3. 3. UNIVERSITY GROWTH FUND Business Model & Strategy Copywrite 2019 University Growth Fund 3 “We were looking for a pain so big you needed a tourniquet. If you didn’t get it, you were going to die.” - Mike Maples (Floodgate)
  4. 4. UNIVERSITY GROWTH FUND Business Model & Strategy Copywrite 2019 University Growth Fund 4 What business are you in?
  5. 5. UNIVERSITY GROWTH FUND Business Model & Strategy Copywrite 2019 University Growth Fund 5 • What is the pain point? • Who feels the paint point (customer) • How does the company solve the pain point?
  6. 6. UNIVERSITY GROWTH FUND Business Model & Strategy Copywrite 2019 University Growth Fund 6 What is Business Strategy? Strategy is the Art of Creating Monopolies
  7. 7. UNIVERSITY GROWTH FUND Business Model & Strategy Copywrite 2019 University Growth Fund 7 • Strategy Types: Niche Market Broad Range of Buyers Low Cost Differentiation Focused Low Cost Strategy Overall Low Cost Leadership Strategy Broad Differentiation Strategy Focused Differentiation Strategy Best Cost Strategy
  8. 8. UNIVERSITY GROWTH FUND “(We invest in) college dropouts with insane ideas going after tiny markets with no way to monetize.” - Ben Horowitz Market Analysis
  9. 9. UNIVERSITY GROWTH FUND Why do VCs invest in big markets? How big? Market Analysis
  10. 10. UNIVERSITY GROWTH FUND Market Analysis Copywrite 2019 University Growth Fund 10
  11. 11. UNIVERSITY GROWTH FUND Market Analysis Copywrite 2019 University Growth Fund 11 • Demographics and Population (Boomers) • Technological advances (processing power) • Product life cycle • External factors (laws) • Network effects (fax machines) • Customs/Culture (Tickle Me Elmo)
  12. 12. UNIVERSITY GROWTH FUND Competition Copywrite 2019 University Growth Fund 12 Raw Materials Manufacturing Distribution Rivalry Buyer Power Substitutes
  13. 13. UNIVERSITY GROWTH FUND Competition Copywrite 2019 University Growth Fund 13 • What factors will determine who will win? – Have to understand the customer and the pain point • Why does this market exist? – Have to understand how each company solves that paint point
  14. 14. UNIVERSITY GROWTH FUND Competition Copywrite 2019 University Growth Fund 14
  15. 15. UNIVERSITY GROWTH FUND Competition Copywrite 2019 University Growth Fund 15 • Who are the top competitors? • What factors will determine who will win? • How is your company positioned against the competition? • What are your company’s sources of competitive advantage? (Keep them from being copied or selling to the same customer)
  16. 16. UNIVERSITY GROWTH FUND Deal Screen Write Up Copywrite 2019 University Growth Fund 16 Business Model & Strategy • What is the pain point, who is the customer, and how does the company solve the pain point? • How does the company monetize? Market Size • How big is the market? TAM, SAM, SOM? • How quickly is it growing? What is driving that growth? Competition • Who are the top competitors? • How is your company positioned against them? • What are your company’s sources of competitive advantage?
  17. 17. UNIVERSITY GROWTH FUND SD VC Competition Copywrite 2019 University Growth Fund 17 Event Topic Assignment Other Kickoff Workshop Competition Rules, Intro to VC Attend! Workshop 2 Deal Sourcing Submit Team Members and Name Last chance to sign up Feb 28th Workshop 3 Due Diligence I Submit 3 Companies Top 20 Teams Selected Workshop 4 Due Diligence II Submit Due Diligence on Target Top 12 Teams Selected, Paired w/Mentors VC Partner Meeting Final Judging Present to VC Partners/Judges Top 5-6 teams Select to Present
  18. 18. UNIVERSITY GROWTH FUND SD VC Competition: Dates to Remember Copywrite 2019 University Growth Fund 18 Date What Feb 27th Workshop 2: Deal Sourcing and Screening Feb 28th Signup closes, Team Submission Deadline Mar 2nd Teams Announced Mar 13th Workshop 3: Due Diligence Selection and Description of 3 Companies Due Mar 16th Top 20 Teams Announced Mar 23rd Initial Due Diligence Report on Target Company Due Mar 27th Workshop 4: Due Diligence and Presentation Top 12 Teams and Mentor Pairing Announced Apr 3rd Final Presentation Due Apr 7th Final 5-6 Teams Announced Apr 10th Final Event + Winning Team Dinner
  19. 19. UNIVERSITY GROWTH FUND Next Workshop: Due Diligence II March 27th 5PM – 7PM Assignments: Top 3 Companies Submission Due: March 13th (tonight!!) Initial Diligence Report Due Due: March 23rd Copywrite 2019 University Growth Fund 19

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