Venture Capital & Private Equity

Venture capital and private equity are the oxygen infusing entrepreneurship and innovation. If you agree with this statement, but would like to learn how to benefit from these kinds of funds, then this programme will enlighten you!

You’ll be tackling vital issues like - how a VC/PE company is structured, and how deals with them are constructed. You will learn how this structure allows them to mitigate the high level of risk, and you’ll also become familiar with how term sheets reduce business risk.

WHY THIS PROGRAMME?

What is the added value of following the programme 'Venture Capital & Private Equity'?

• You will understand how a VC/PE fund is set up and understand the VC/PE investment cycle. This goes from looking for external investors to exciting portfolio companies.
• You will learn how VC/PE managers are compensated, and how this compensation aligns their goals with the goals of investors.
• You will understand how the standard company valuation models should be adapted to fit the entrepreneurial context.
• Get a grasp on the important principles of VC/PE investment, including expected returns, capitalization tables, staging, liquidation and exit preferences, anti-dilution ratchets.
• You will structure deals in a highly uncertain environment; focusing on types of equity, and designing contracts that align the goals of investors and entrepreneurs.
• You will understand how risk and control are shifted between different parties.
• You will be able to design a full buyout model.

DETAILED PROGRAMME

The programme 'Venture Capital & Private Equity' covers following topics:

The Venture Capital and Private Equity Model

• Private equity and venture capital: two lenses to value creation
• The business model of private equity and venture capital
• Guest presentation (real-life case insights)

Valuation of Early Stage Companies

• Learn why traditional corporate finance models don’t hold for early-stage companies
• Techniques used by venture capital and private equity investors
• Flexible valuation linked to future developments (case approach)

Structuring the Deal

• Deal structure funding: debt and equity instruments (toolkit approach)
• Understanding widely-used deal features
• Exit preferences and valuation
• Business risk reduction through term sheets

The Buy-out Model

• Value creation principles in buy-outs
• Designing a Management Buy-Out (MBO): financial structure, business optimisation and growth (case simulation)