Ambitious entrepreneurs need stimulating ecosystems. Dutch partners in regional economics (Ministry of Economic Affairs, Economic Board Utrecht, Utrecht University) now explore the Dutch entrepreneurial ecosystem. In that system venture capital of course is vital for ambitious entrepreneurs. Don Ginsel (Capital Waters) explains the Dutch situation.
Venture Financings 101 (SAFEs, Convertible Notes, Seed and Series A) | Bardia...UCICove
An introductory crash course on the typical legal and business terms involved with, and negotiated in, venture capital fundraising including SAFE, Convertible Note, Series Seed and Series A financings.
Understanding How Venture Capital Works | Kirsten Leute and John Lee | Lunch ...UCICove
About UCI Applied Innovation:
UCI Applied Innovation is a dynamic, innovative central platform for the UCI campus, entrepreneurs, inventors, the business community and investors to collaborate and move UCI research from lab to market.
About the Cove @ UCI:
To accelerate collaboration by better connecting innovation partners in Orange County, UCI Applied Innovation created the Cove, a physical, state-of-the-art hub for entrepreneurs to gather and navigate the resources available both on and off campus. The Cove is headquarters for UCI Applied Innovation, as well as houses several ecosystem partners including incubators, accelerators, angel investors, venture capitalists, mentors and legal experts.
Follow us on social media:
Facebook: @UCICove
Twitter: @UCICove
Instagram: @UCICove
LinkedIn: @UCIAppliedInnovation
For more information:
cove@uci.edu
http://innovation.uci.edu/
Ambitious entrepreneurs need stimulating ecosystems. Dutch partners in regional economics (Ministry of Economic Affairs, Economic Board Utrecht, Utrecht University) now explore the Dutch entrepreneurial ecosystem. In that system venture capital of course is vital for ambitious entrepreneurs. Don Ginsel (Capital Waters) explains the Dutch situation.
Venture Financings 101 (SAFEs, Convertible Notes, Seed and Series A) | Bardia...UCICove
An introductory crash course on the typical legal and business terms involved with, and negotiated in, venture capital fundraising including SAFE, Convertible Note, Series Seed and Series A financings.
Understanding How Venture Capital Works | Kirsten Leute and John Lee | Lunch ...UCICove
About UCI Applied Innovation:
UCI Applied Innovation is a dynamic, innovative central platform for the UCI campus, entrepreneurs, inventors, the business community and investors to collaborate and move UCI research from lab to market.
About the Cove @ UCI:
To accelerate collaboration by better connecting innovation partners in Orange County, UCI Applied Innovation created the Cove, a physical, state-of-the-art hub for entrepreneurs to gather and navigate the resources available both on and off campus. The Cove is headquarters for UCI Applied Innovation, as well as houses several ecosystem partners including incubators, accelerators, angel investors, venture capitalists, mentors and legal experts.
Follow us on social media:
Facebook: @UCICove
Twitter: @UCICove
Instagram: @UCICove
LinkedIn: @UCIAppliedInnovation
For more information:
cove@uci.edu
http://innovation.uci.edu/
More here: http://www.thecapitalnetwork.org/
Are you thinking about what you need to fund your company? Where do you start? Funding is not “one size fits all”. Every company has to approach their pathway to funding with a unique approach. Join our fundraising experts for an in-depth discussion of what options you have for funding and how to decide which paths are right for you and your company. We’ll have a specific focus on life science focused companies and technologies and the funding choices available.
Experts:
Jeremy Halpern – Nutter McClennen & Fish
Yumin Choi – HLM Venture Partners
Paul Hartung – Cognoptix, Inc
Startup Investing 101 - Learn how to invest in startups.
As one of the leading online startup investing marketplaces, Onevest's vision is to make investing in privately held companies easy by providing a gold standard in deal flow that matches your specific areas of interest. You tell us what you like, and we deliver just that.
Webinar Agenda
Top four most asked questions by newbie startup investors.
1. How do I compare startups to determine most attractive opportunity?
2. What type of due diligence should I do before making an investment?
3. What happens after I invest in the startup?
4. What type of return on investment can I expect?
this is our presentation on the starting stages to for planning to prepare to go for startup funding / small business loans / invoice loans / factoring etc etc
Have a great idea, but not sure how to get funding to turn it into a business? This presentation highlights the many ways to find funding and focuses on the pros & cons of using venture capital to launch.
Retirement income strategies during volatile and uncertain marketsnetwealthInvest
Michael Elsworth, Executive Director at Lonsec, joins us to discuss retirement income strategies during volatile markets, including his investment philosophy, the benefits and risks of different retiree income strategies and the advantages of combining income streams during times of uncertainty.
Co-founder of Hack Upstate, Mitchell Patterson presents the basics of raising capital. From Sources of Seed Capital, How to Prepare, The Pitch, and what to do once you receive funding.
Quick and dirty guide to venture capital in general with a segmentation on cleantech in venture from a long time venture capitalist and 7x startup founder and executive
A crash course in angel and venture capital funding at SVOD Summer 2013AmBAR
Theresia Gouw, Accel Partners, and Iiya Strebulaev, Stanford, offered a crash course in angel and venture capital funding at SVOD Summer 2013. The pair explained the science behind the practice, and what it takes to succeed in the crowded startup community.
More here: http://www.thecapitalnetwork.org/
Are you thinking about what you need to fund your company? Where do you start? Funding is not “one size fits all”. Every company has to approach their pathway to funding with a unique approach. Join our fundraising experts for an in-depth discussion of what options you have for funding and how to decide which paths are right for you and your company. We’ll have a specific focus on life science focused companies and technologies and the funding choices available.
Experts:
Jeremy Halpern – Nutter McClennen & Fish
Yumin Choi – HLM Venture Partners
Paul Hartung – Cognoptix, Inc
Startup Investing 101 - Learn how to invest in startups.
As one of the leading online startup investing marketplaces, Onevest's vision is to make investing in privately held companies easy by providing a gold standard in deal flow that matches your specific areas of interest. You tell us what you like, and we deliver just that.
Webinar Agenda
Top four most asked questions by newbie startup investors.
1. How do I compare startups to determine most attractive opportunity?
2. What type of due diligence should I do before making an investment?
3. What happens after I invest in the startup?
4. What type of return on investment can I expect?
this is our presentation on the starting stages to for planning to prepare to go for startup funding / small business loans / invoice loans / factoring etc etc
Have a great idea, but not sure how to get funding to turn it into a business? This presentation highlights the many ways to find funding and focuses on the pros & cons of using venture capital to launch.
Retirement income strategies during volatile and uncertain marketsnetwealthInvest
Michael Elsworth, Executive Director at Lonsec, joins us to discuss retirement income strategies during volatile markets, including his investment philosophy, the benefits and risks of different retiree income strategies and the advantages of combining income streams during times of uncertainty.
Co-founder of Hack Upstate, Mitchell Patterson presents the basics of raising capital. From Sources of Seed Capital, How to Prepare, The Pitch, and what to do once you receive funding.
Quick and dirty guide to venture capital in general with a segmentation on cleantech in venture from a long time venture capitalist and 7x startup founder and executive
A crash course in angel and venture capital funding at SVOD Summer 2013AmBAR
Theresia Gouw, Accel Partners, and Iiya Strebulaev, Stanford, offered a crash course in angel and venture capital funding at SVOD Summer 2013. The pair explained the science behind the practice, and what it takes to succeed in the crowded startup community.
Saeed Amidi keynote at TEC International Startup Conference (Dec 6,2011)Stas Khirman
More details at http://www.tecglobal.org
Saeed Amidi is the Founder, President and CEO of Plug and Play Tech Center. Plug and Play is the premier technology startup accelerator in the world with over 200 companies which collectively have raised over $750 million.
Saeed has been investing in technology companies for over 15 years and holds successful investments in over 70 technology companies such as PayPal, Powerset, Danger, Bix, etc.
Corporate Finance for Early & Growth Stage CompaniesBoast Capital
Running a business requires capital, but how do you determine which funding option is the best fit?
Gain the knowledge and tools you need to make decisions regarding financing sources and avoid common pitfalls. Specifically you will learn:
-Equity vs Debt
-Friends & Family vs Angels vs VCs/Negotiating the Term Sheet
-Bank Debt
-Mezzanine / Bridge Financing
-R&D tax and government funding
Presentation on the investment basics for Startups. Essentials of startup investments, focusing on funding cycles, risk management and investor structures.
How To Raise Capital: Understanding Your Funding Stack & Optimizing Your Fund...Lighter Capital
Despite some signs of a slowdown, the seed and venture markets are relatively healthy. However, raising capital remains one of the most challenging jobs that a startup CEO will ever undertake.
What's your fundraising strategy for remainder of 2017 and beyond? How do you plan to raise your next round, especially in a tighter VC market?
Join BJ Lackland, CEO of Lighter Capital, and Nathan Beckord, CEO of Foundersuite, on September 19 where they will discuss:
- Recent funding trends and the rise of alternative funding options
- How to think about your capital stack
- Tips on optimizing your capital raise
Are you thinking about what you need to fund your company? Where do you start? Funding is not “one size fits all”. Every company has to approach their pathway to funding with a unique approach. Join our fundraising experts for an in-depth discussion of what options you have for funding and how to decide which paths are right for you and your company. We’ll have a specific focus on life science focused companies and technologies and the funding choices available for them.
Capital budgeting for small and medium businessesTim Richardson
Discuss practical approaches to supporting investment decisions at small and medium businesses. Discuss DCF and its weaknesses. Discusses infrastructure investments which don't have a clear business case but which are essential.
How to Split the Pie, Raise Money, and Reward Contributors (Idea To IPO)Roger Royse
What’s my startup worth? How much equity should founders have? How much equity should I give to employees and consultants? How much should I give to the venture capitalists?
Silicon Valley startup attorney Roger Royse of the Royse Law Firm discusses the basic valuation and ownership issues involved in a startup’s life, from formation to financing to exit, including how to value your company and the contributions of stakeholders and investors at each step with a particular emphasis on different models, best practices and traps to avoid.
Employee Share Schemes & Capital Raising | Wednesdays with Redchip AugustRedchip
Our experts look at two interacting strategies for businesses experiencing, or striving for, high growth:
1. Employee Share Schemes (also known as Employee Share Option Plans) - how do they work and what are the benefits for employers and employees?
2. Capital Raising - how to prepare your business to approach investors and issues to consider in relation to Employee Share Schemes.
Pitch Johnson Opens TEC International Startup Conference (Dec 6,2011)Stas Khirman
Details at http://www.tecglobal.org
Mr. Franklin Pitcher ("Pitch") Johnson was co-founder in 1962 of Draper and Johnson Investment Company, venture capital company, and became an independent venture capitalist in 1965 as the founder of Asset Management Company. Asset Management Company has made over 250 venture investments during its more than 43 years of operation. These have included Amgen, Applied Bio Systems, Applied Micro Circuits, Conductus, Hybritech, IDEC Pharmaceuticals, Octel, Qume, Red Brick Systems, Remedy, Sierra Semiconductor, Tandem Computer, Teradyne and Verity. He was a director of many of those companies and is presently a director of three private companies, and a public investment fund operating in eastern Europe.
[TEC event] 'Start-up King' Mike Cassidy: How to build 4 successful companies...Stas Khirman
Mike Cassidy at TEC (http://www.tecglobal.org/tec_20110112) .
Mike Cassidy is a legendary Silicon Valley serial entrepreneur that has co-founded, served as CEO, and led 4 (four!) consumer Internet companies to market leadership and successful acquisitions (over $600m in total):
September 9,2010 - CoolTech Club had been honored to have Steve give a keynote address on Emerging Technology Markets: From Green IT to Energy and Nanotech followed by the Q&A session.
1. Valuation and Financing for Entrepreneurs:
A One-Hour Crash Course
Ilya Strebulaev
Stanford GSB
It requires a very unusual mind to undertake the analysis of the obvious
Alfred North Whitehead
2. Our Objectives
Four questions we will concentrate on:
◮ How to come up with an estimate of the value of your project/firm?
◮ How to finance your idea to make it into a successful project into a
successful company?
◮ How to write financial contracts with your money providers?
◮ How to optimize your exit strategy?
c Ilya Strebulaev Valuation and Financing 2
4. Valuation
What information do you need
◮ Your free cash flows this year and in the future
• free: not re-invested in the firm
◮ Your discount rate
• Reflects riskiness of the project
• Reflects general level of interest rates in the economy
• Also called: required rate of return; cost of capital
c Ilya Strebulaev Valuation and Financing 3
5. Valuation example
Ilya Inc.
◮ The project costs $15,000 now (2005) to invest
◮ The project will bring $10,000 each year in 2006, 2007 and 2008
◮ The project has the discount rate of 20%
10, 000 10, 000 10, 000
Net Present Value = −$15, 000+ + 2
+ 3
∼ $6, 000
1.2 1.2 1.2
◮ What happens if the discount rate is 50%?
10, 000 10, 000 10, 000
Net Present Value = −$15, 000+ + + ∼ −$1, 000
1.5 1.52 1.53
c Ilya Strebulaev Valuation and Financing 4
6. Main valuation rule
Invest in projects that have positive NPV
◮ How to estimate cash flows and discount rates for your project/firm?
◮ General case: much more difficult to estimate at an earlier stage
◮ Look at comparables
• Projects/firms/divisions of firms in a similar industry
• Valuation of recently sold businesses in your industry/region
◮ Look at industry practices/venture capitalist required rate of return
◮ Look at your competitive advantage
c Ilya Strebulaev Valuation and Financing 5
7. Stages of financing
Seed stage investment
◮ Idea
◮ Business plan (often a confidential piece)
• The proposed product
• The potential market
• The underlying technology
• The needed resources (money, human capital, equipment, time)
• The resources currently in place
◮ What is crucially important at this stage for money providers
• Faith in the entrepreneurial team
• Faith in the product
◮ Who finances at this stage?
• Relatives, friends
• Venture capitalists (VC)
c Ilya Strebulaev Valuation and Financing 6
8. Seed financing: Cont’d
◮ What are standard contracts between VC and the product team?
• Equity: VC becomes a partial owner of the company
∗ Often: preferred equity convertible into common stock
· Preferred equity has the first-right advantage over common equity
∗ Use it to your advantage, do NOT be afraid of that!
• VC gets a place on the board of directors
∗ Monitoring and control function
∗ Use VC’s expertise
◮ How to maximize VC’s faith in your project?
• Put your money where your mouth is
◮ What you need to be aware of that:
• Control function of VC
• Example: equity dilution
c Ilya Strebulaev Valuation and Financing 7
10. Second-stage financing
◮ Common purposes:
• Pilot production
• Test marketing
• Further/larger experiments
◮ Who finances at this stage?
• The original VC [may have the first priority]
• Other VCs, wealthy individuals
◮ What form does new financing take?
• Preferred/common equity
• Convertible debt
c Ilya Strebulaev Valuation and Financing 10
11. Deviation
Difference between equity and debt
◮ Common equity entitles to ownership of business
• “Ownership” means ”Residual cash”
• Cash is not promised
◮ Debt entitles to pre-specified income
• Cash is promised
• If not paid, the firm defaults and in the hands of creditors
◮ Preferred equity and convertible debt are between equity and debt
• Convertible debt is debt that can be converted into equity
• Preferred equity is equity with promised dividends
c Ilya Strebulaev Valuation and Financing 11
12. Equity vs Debt
Continued
◮ Priority in distribution of profit/assets
1. Senior secured debt [bank debt, some VC debt]
2. Other debt
3. Junior [usually convertible] debt
4. Preferred equity
5. Common equity [owners of the firm: the production team]
◮ How to compare various financial securities/contracts:
• Differences in cash flow risks
• Differences in incentives
• Differences in control
c Ilya Strebulaev Valuation and Financing 12
13. Mezzanine stage financing
◮ Purposes:
• Full-scale production
• Serious marketing
◮ Mezzanine investors are different from VC
• Lower appetite for risk ...
• ... but ready to accept lower returns
• Stock/Convertible debt/Debt
c Ilya Strebulaev Valuation and Financing 13
14. Exit strategies
◮ Don’t count your chicken until they are hatched
◮ But ...
• A stitch in time saves nine!
◮ Plan your exit strategy in advance
◮ Possible outcomes
• Sale to a private equity firm, loss of ownership
• Merger/acquisition/takover within industry
• Initial public offer
c Ilya Strebulaev Valuation and Financing 14
15. Initial public offer
◮ Many successful start-ups in the US/UK eventually go public
• Continental Europe: most companies remain private
◮ Primary vs secondary offering: raising new capital vs cashing in
◮ Selecting the market
◮ Selecting underwriters
• Underwriters: legal/procedural/financial advice, buy the issue and resell
◮ Important: any IPO will change the distribution of control in the firm
• Public markets have different attitude towards risk than VCs
c Ilya Strebulaev Valuation and Financing 15
16. Financing and valuation:
Last word
There are three sorts of economists.
Those who can count and those who can’t.
attributed to John Maynard Keynes