MGMT 496 \u2013 696 Structuring & Managing the Venture Capital Processes<\/p>\n
Future-is-Now Ventures<\/p>\n
Future-is-Now Ventures is a venture capital fund with the following:<\/p>\n
Just raised its first fund of $25 Million<\/p>\n
5 Limited Partners (LPs) each investing at 20%<\/p>\n
4 General Partners (Professor White is one of the GPs)<\/p>\n
10 year fund<\/p>\n
Invest in a wide range of industries. Focus is Series Seed and Series A startup ventures that use technology to disrupt an industry.<\/p>\n
2% management fee and 20% carry.<\/p>\n
Future-is-Now Ventures<\/p>\n
Future-is-Now Ventures is a venture capital fund with the following:<\/p>\n
Just raised its first fund of $25 Million<\/p>\n
5 Limited Partners (LPs) each investing at 20%<\/p>\n
4 General Partners (Professor White is one of the GPs)<\/p>\n
10 year fund<\/p>\n
Invest in a wide range of industries. Focus is Series Seed and Series A startup ventures that use technology to disrupt an industry.<\/p>\n
2% management fee and 20% carry.Business Memo #3: Deal Sourcing Using Equity Crowdfunding Platforms<\/p>\n
Future-is-Now Ventures<\/p>\n
Scenario: You are a VC analyst with Future-is-Now Ventures. Your GPs have become intrigued with Equity Crowdfunding platforms as a way to improve\/increase deal flow. <\/p>\n
You are tasked with signing up with the below platforms, reviewing at least 20 companies, and identifying 3 companies to potentially be added to your deal flow. The GPs also want you to recommend one as \u201cthe most investable\u201d. You will prepare a written memo of your analysis. Be prepared to make brief remarks. <\/p>\n
Keep in mind two items: <\/p>\n
\u201cReturn the fund\u201d goal for each of the three proposed investments (20x \u2013 22x return) and<\/p>\n
investment size for each investment (4 GPs x 5 investments each x $1,000,000 per investment). So we are looking for approximately $300,000 – $600,000 for Seed Series\/Series A investment and leave the remainder (dry powder) for follow on rounds.<\/p>\n
Important Criteria when screening companies:<\/p>\n
Proposed (Initial) Investment Amount: For Future is Now Ventures it is $200,000 – $400,000 (to fit our fund, correct?) (total is about $1M for initial + dry powder)<\/p>\n
\u201cMinimum Amount to Invest\u201d: Only look at companies where it is $3,000 or less (to fit my actual investment! :<) )<\/p>\n
Make sure the \u201cinvestment period\u201d is open through December!<\/p>\n
Important Criteria when screening companies:<\/p>\n
Proposed (Initial) Investment Amount: For Future is Now Ventures it is $200,000 – $400,000 (to fit our fund, correct?) (total is about $1M for initial + dry powder)<\/p>\n
\u201cMinimum Amount to Invest\u201d: Only look at companies where it is $3,000 or less (to fit my actual investment! :<) )<\/p>\n
Make sure the \u201cinvestment period\u201d is open through December!<\/p>\n
Action Steps:<\/p>\n
1. Register as an investor with these three Crowdfunding Platforms:<\/p>\n
Wefunder <\/p>\n
Seedinvest <\/p>\n
Microventures <\/p>\n
StartEngine<\/p>\n
2. Review each website extensively to understand the rules for investing and how to search.<\/p>\n
3. Review at least 15 – 20 companies (preferably in your previously identified industries) to get to your \u201ctop 3\u201d and then \u201ctop 1\u201d recommendation as most \u201cinvestable\u201d. <\/p>\n
4. Prepare your memo! See next page for template. Submission date\/time: See Syllabus\/CANVAS.<\/p>\n
Business Memo #3 Template: Maximum of 6 pages (for content + Appendices), single space (1.0 \u2013 1.25, 11 or 12 point font). The memo structure is as follows:<\/p>\n
Memo Salutation<\/p>\n
Brief Summary\/Introduction and BLOT (1\/2 page)<\/p>\n
Company 1, 2, 3 (for each) (Use APA citation where appropriate) (1 \u2013 1.5 pages for each. Start on new page for each of these)<\/p>\n
Deal Snapshot:<\/p>\n
Deal Snapshot:<\/p>\n
Deal Snapshot (Smart approach: Separate into a separate box )<\/p>\n
Company Name and website link:<\/p>\n
Industry:<\/p>\n
Platform:<\/p>\n
Funds Raised to date and closing period:<\/p>\n
Investment vehicle (equity, convertible note, SAFE) and terms:<\/p>\n
Type (CF, Reg A+, Reg D):<\/p>\n
In your Memo Analysis: \u201cIntegrate (weave in) throughout your data\/outcomes from your Venture Rating Model, VC-1 Model, VC-1 Dilution & Cap Table. Make sure you explain WHY for: your \u201cscrubbing\u201d (if any), Inv#1 ($, %), Inv#2 ($, %), future rounds (of our $ but also other investors), Revenue guidance), and any other numbers<\/p>\n
In your Memo Analysis: \u201cIntegrate (weave in) throughout your data\/outcomes from your Venture Rating Model, VC-1 Model, VC-1 Dilution & Cap Table. Make sure you explain WHY for: your \u201cscrubbing\u201d (if any), Inv#1 ($, %), Inv#2 ($, %), future rounds (of our $ but also other investors), Revenue guidance), and any other numbers<\/p>\n
Our proposed initial investment amount:<\/p>\n
Company Overview:<\/p>\n
Industry Data- Forecast info? (1 \u2013 2 sentences)<\/p>\n
Customer Problem\/Pain Point<\/p>\n
Product\/Service Solution<\/p>\n
TAM Market Size<\/p>\n
Team Member names & brief analysis<\/p>\n
Other relevant information<\/p>\n
Financial forecast Table for 1 \u2013 5 years. High level Revenue, COGs, GM, EBITDA\/Operating Income. \u201cunits sold\u201d also helpful for year)<\/p>\n
Item<\/p>\n
Year ?<\/p>\n
Year ?<\/p>\n
Year ?<\/p>\n
Year ?<\/p>\n
Year ?<\/p>\n
Revenue<\/p>\n
COGS<\/p>\n
GM<\/p>\n
Fixed (S&GA)<\/p>\n
EBITDA\/OI<\/p>\n
\u201cUnits\u201d sold<\/p>\n
Analysis:<\/p>\n
What are the 3 \u2013 4 items you really like about this company that makes it \u201cinvestable\u201d?<\/p>\n
Team, Traction, Scale potential, Other<\/p>\n
What are your 2 \u2013 3 biggest hesitations\/risks that you see in investing?<\/p>\n
Why is this company a fit for our fund?<\/p>\n
Number 1 Recommended Company as \u201cHighly Investable\u201d (1\/2 page)<\/p>\n
Why? Give solid reasoning and analysis. <\/p>\n
Appendix (start on a new page)<\/p>\n
TOOL KIT:<\/p>\n
Venture Rating Model For each of the 3 companies: (No assumptions needed for the two you did not select. YES for assumptions for the 1 company you selected)<\/p>\n
VC-1 Method, VC-2 Dilution, & Seed-A-B-C Cap Table Analysis for your all 3 companies \u2013 full details\/assumptions for your 1 investable pick<\/p>\n
Table that includes at 15 – 20 companies you reviewed using the below framework <\/p>\n
Company Name (website link embedded)<\/p>\n
Industry<\/p>\n
Pitch<\/p>\n
Why should we invest? 1 sentence<\/p>\n
Amount Raising, Vehicle, Terms<\/p>\n
So your actual submission will include: 1 PDF of the Memo and 3 separate Tool Kits (Excel) with your three companies.<\/p>\n","protected":false},"excerpt":{"rendered":"
MGMT 496 \u2013 696 Structuring & Managing the Venture Capital Processes Future-is-Now Ventures Future-is-Now Ventures is a venture capital fund with the following: Just raised its first fund of $25 Million 5 Limited Partners (LPs) each investing at 20% 4 General Partners (Professor White is one of the GPs) 10 year fund Invest in a […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[10],"class_list":["post-78818","post","type-post","status-publish","format-standard","hentry","category-research-paper-writing","tag-writing"],"_links":{"self":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/78818","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/comments?post=78818"}],"version-history":[{"count":0,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/78818\/revisions"}],"wp:attachment":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/media?parent=78818"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/categories?post=78818"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/tags?post=78818"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}