The course desription document is here, outlining the class content and procedures.

The focus is bringing in a real business plan that a VC evaluated and invested in, and ripping it apart and deciding whether you would make the investment. The objective is to teach you about the process VCs go through in deciding whether to invest in a company, and give you a close look at the murky waters of the decision making environment in VC. The class will mainly focus on early stage VC.

Participating VCs supply the original business plan for one of their previous portfolio company investments. Students get the business plan prior to class, and are asked to go through it, think about the opportunity and the market and the management and the numbers on paper, and then prepare an analysis stating what the value proposition is, what the risks invlved are, what further due diligence would be needed, what the pros and cons of the investment are, the challenges they see likely to arise, whether the projections seem reasonable, whether they think the investment will likely succeed or fail, etc. In the four-hour class session we will go through the process in detail, usually together with the VC involved. Sometimes we will also bring in the entrepreneur as well, and have them talk about what actually happened with the company, what they were thinking when they wrote the plan, and whether the deal succeeded or failed and whether the students did a good job of identifying the risks involved.

I will aim to have you to think about the value proposition and the chances that the company can make money, and primarily about the risks the company and the investor making the deal will face. Some of the businesses will be successes and some will have failed.

Each class will also set aside time for the participating VC to answer your questions and talk about their views on a particular aspect of the VC investing process.

I anticipate that there will be seven or eight cases and two lectures, for a total of 30 hours of class time.

The final project will be a case analysis that will put together all we have learned in the course.


Is there a significant overlap with 445 - Venture Capital and Private Equity?

I do not anticipate a significant overlap between the classes. 445 is a co-requirement for 932, and will provide an introduction to the Vc industry and terminology. 932 will focus on evaluating business plans, and provide an in-depth look at the due diligence process and the many factors that go into making a decision to invest in a young startup. We have anticipated these concerns, and the classes are specifically designed not to have a significant overlap. The first lecture in 932 will provide a refresher on some terminology and industry details for those who have taken 445, and will provide those taking it concurrently with enough background for the initial case sessions.