Entrepreneurial Finance: Venture Capital
What you'll learn
- VC Valuation Model
- VC Investment Decision-Making Process
- Key Sections of the VC Term Sheets
- Participating Preferred Equity
- Antidilution Provisions
- Basic use of spreadsheets
*** All the Excel files used on the videos are available in the resources section of the respective lessons***
Welcome to the Venture Capital course, where you will learn to evaluate the different sections of the term sheets. My name is Carlos Martínez, I have a Ph.D. in Management from the University of St. Gallen. During my doctoral studies, I delved into access to entrepreneurial financing in contexts with institutional voids, research that I presented at some of the most prestigious academic conferences and doctoral colloquiums held at the University of Tel-Aviv (Israel), Politecnico di Milano ( Italy), University of Halmstad (Sweden) and MIT (USA), and which was also partially published as a chapter of the book "New Frontiers in Entrepreneurial Finance Research," co-edited by established Professors in the Entrepreneurial Finance literature.
I designed this course for potential entrepreneurs, and university students interested in pursuing a career in Venture capital funds. At the end of this course, you will understand the Venture Capitalists' investment decision-making process and be able to evaluate the different sections of a term sheet: the valuation, vesting, convertible preferred equity, and anti-dilution provisions.
The course has a practical approach and uses the teaching case method. First, we will review the VC decision making process. Secondly, you will learn the VC valuation model. After that, you will take the role of one of the entrepreneurs and evaluate different scenarios according to the vesting clauses. Then, you will estimate different investment vehicles such as simple and participating convertible preferred stocks under different exit values. Finally, we will illustrate the full ratchet and weighted average anti-dilution provisions. In addition to the video sessions, you will have access to all the Excel files that we will develop in the course.
The ideal students of this course are early-stage entrepreneurs interested in getting funding to scale, and young professionals pursuing careers in early-stage financing. The only requirement is a basic use of spreadsheets.
Feel free to take a look at the course description and I am looking forward to seeing you soon!
Who this course is for:
- Entrepreneurs and potential entrepreneurs looking for funding
- University students and young professionals pursuing careers at investment banking or VCs funds
(English profile below)
Carlos es un apasionado del método de casos de enseñanza, coautor de más de 25 de ellos en las áreas de finanzas, estrategia, operaciones y desarrollo sostenible. Algunos de estos han sido incluidos en las bases de casos de prestigiosas escuelas de negocio como Harvard, Michigan e IESE.
Es Ingeniero Industrial y Master en Finanzas de la Universidad Centroamericana, MBA con distinción de INCAE Business School y Ph.D. en Management de la Universidad de San Galo, Suiza. Ha orientado su investigación hacia el impacto de la información social, ambiental, y de gobierno corporativo (ESG) en los mercados financieros. También ha desarrollado estudios relacionados con el acceso al financiamiento emprendedor en contextos con vacíos institucionales.
Su investigación ha sido presentada en prestigiosas conferencias como el coloquio doctoral del Alliance for Research on Corporate Sustainability (MIT, EEUU), la conferencia especializada “From start-up to scale-up” del Academy of Management (University of Tel-Aviv, Israel), la tercera conferencia en Entrepreneurial Finance (Politecnico de Milano, Italia) y el Congreso Anual del European Accounting Association (Valencia, España).
Carlos es coautor de cinco artículos en revistas científicas arbitradas (peer-reviewed) y dos capítulos en libros de editoriales de prestigio (Edward Elgar y World Scientific Publishing). Su investigación ha sido citada por el International Integrated Reporting Council en documentos dirigidos a inversionistas institucionales. Adicionalmente, ha sido revisor ocasional de artículos científicos para varias revistas arbitradas.
Carlos is passionate about the teaching case method and has co-authored more than 25 of them in the areas of finance, strategy, operations, and sustainable development. Some of these have been included in the case bases of prestigious Universities such as Harvard and Michigan.
He is an Industrial Engineer and Master in Finance from Central American University. He also has an MBA with honors from INCAE Business School, and a Ph.D. in Management from the University of St. Gallen, Switzerland. Carlos has oriented his research towards the impact of social, environmental, and corporate governance (ESG) information on financial markets. He has also developed studies related to access to entrepreneurial financing in contexts with institutional voids.
His research has been presented at relevant conferences such as the doctoral colloquium of the Alliance for Research on Corporate Sustainability (MIT, USA), the specialized conference “From Start-up to Scale-up” of the Academy of Management (University of Tel-Aviv, Israel ), the third conference on Entrepreneurial Finance (Politecnico de Milano, Italy) and the Annual Congress of the European Accounting Association (Valencia, Spain).
Carlos has co-authored five articles in peer-reviewed journals and two chapters in books from prestigious publishers (Edward Elgar and World Scientific Publishing). His research has been cited by the International Integrated Reporting Council in documents aimed at institutional investors. Additionally, he has been an occasional reviewer of scientific articles for several peer-reviewed journals.