THEORY

• Pre-read: Introductory materials (news, documents, book chapters…) related to each topic
• Theory videos: Recorded sessions explaining all relevant concepts of the topic
• Slides: Theory in “slides” format to follow the recorded videos and complete the practical case

Lesson 1 · Introduction to Venture Capital

• What is a Venture Capital firm? What is a Venture Capital fund? Presentation of the main VC stakeholders: Managers, LPs, entrepreneurs.
• History of Venture Capital: origin and deep dive of its evolution in Spain.
• What companies do Venture Capital funds invest in. Examples.
• Life phases of startups and the role of investors in each phase: when do funds enter, with what amounts and what role do they play?
• Case study

Lesson 2 · Fund structure and operations I

• Different types of funds (Pledge Funds, Evergreen Funds, …)
• VC fund profiles and career paths: GPs, LPs, Principals, Investment Associates, typical profiles, typical years in each role.
• Fund life cycles: duration, investment phase, disinvestment, recycling, fund chaining, initial investment management vs. follow-ons, etc. Comment on evergreen.
• Incentives in funds: management fees and carry. Cash flow in funds
• Case study

Lesson 3 · Fund structure and operations II

• Main fund metrics: Vintage, TVPI, DPI, IRR, Capital Call, Loss Ratio.
• Benchmarking the performance of different funds in Europe and in the USA.
• Legal clauses of the funds: the rules and regulations and Venture Capital fund tech stack: tools used by funds
• Case study

Lesson 4 · Dealflow

• Investment thesis of the funds: main variables (stage, vertical/general, geographic). Examples of some funds: Sequoia, Fifth Wall, Airstreet.
• Investment process: from the first meeting to the Term Sheet. Investment Committee. Materials needed at each step of the process
• Potential deal analysis
• Case study

Lesson 5 · Startup valuation

• Main typical valuation methods in startups:
  • Dilution
  • The VC method
  • Comparable multiples
  • DCF. Does it work?
• Stages at which each business model is typically used and dilution benchmarks
• Examples of valuations – Is it ideal to raise the most money at the highest valuation? Implications of doing so
• Case study

Lesson 6 · Execution of a Venture Capital transaction

• Captable: what is it
• Pre-money and post-money valuation, primary and secondary, convertible notes, ESOPs…
• Term Sheet: main clauses Preferred shares, Liquidation Preference, Antidilution rights, Right of First Refusal, Tag Along & Drag Along…
• Due Diligence: actors, timing, red flags
• Case study

Lesson 7 · Portfolio management

• Venture Capital portfolio management: power law (distribution of returns) & home runs
• Company management:
  • Board dynamics throughout the life of the company
  • Internal follow-on management
• The VC fund as a platform: examples of how funds help companies
• Case study

Lesson 8 · Exits

• Types of exit: M&A, IPO/SPAC, Aquihire, Secondaries/buy-outs
• Exit terms: Equity purchase/Asset purchase, Earn-out, Lock-in period, Implications of liquidation preferences in an exit…
• Waterfall
• Case study

Lesson 9 · Financing of a VC fund

• Fundraising process of a fund: timing, sources, costs, evolution of amounts
• What do LPs look at? GPs selection criteria: team, track record, market, investment thesis
• Public financing: role and requirements of the EIF, ICO, etc.
• Leverage
• Case study

Lesson 10 · Reporting from GPs to LPs

• Relationship GPs – LPs: motivations behind LP investments and matching with GPs
• Reporting content and tools
• Main problems and points of discussion
• Reporting cadence and meetings with LPs
• Case study