An introduction to venture capital (2007)
Please note that this page refers to a previous event, held in 2007.
A full day introductory course on venture capital for anyone wishing to understand its principles and application.
It will include such topics as:
- The use of venture capital as a form of financing for companies
- Types of venture capital
- Principal documents within a venture capital transaction
Course Perspective
The course offers a viewpoint on all aspects of venture capital investment, including issues related to venture capital investment selection, valuation, deal structuring, and exits.
It also provides an historical perspective on the development of the industry.
The focus of the program is primarily on venture capital, i.e. early-stage investments in developing technologies; later stage deals (mezzanine and growth capital) are also briefly discussed.
It will also provide an overview of the documentation involved and consider the effect of certain key clauses in the articles of association and investment agreement.
The course is self contained and covers a range of UK situations.
Course Venue and Date
The course will be held at:
Oakley Hall
Rectory Road
Oakley
Hampshire
RG23 7EL
Please visit Oakley Hall's website for directions
http://www.oakleyhall-park.com
Date:
Thursday the 15th of November 2007, 9:00am - 5:30pm
Course agenda
Morning Session
This session will provide an overview of the venture capital marketplace, a typical investment process and the investment structures involved; it will also provide an overview of company valuation. Topics will include:
Basic Investment Structures
- Equity instruments
- Debt instruments: Prefs/Convertibles
- Hybrid instruments: warrants, options
- Tax mitigation schemes e.g. EIS
Due Diligence and Business Documentation
- Issues relating to the business plan
- Business due diligence
- Legal & financial due diligence
- The Term Sheet/LOI
- Directors' duties/conflicts of interest
- Management warranties/disclosures
Approaches to Valuation
- IRR based valuations
- DCF Valuation
- NAV Based Valuation
- Asset and Option Based Valuations
- "Pre-money" valuation and its relationship to other methods
- Peer Group Analysis
- Exit valuation and criteria
- Managing the costs
CASE STUDY 1
Delegates will value a company using different valuation techniques.
Afternoon Session
This session will examine typical documents/issues within a venture capital transaction including:
- Investment/Shareholders Agreement
- Articles of Association, share rights, drag and tag rights, reversion rights, liquidation preferences and anti-dilution provisions
- Debentures
CASE STUDY 2
Delegates will form negotiating teams and divide into VC investors and sellers.
The teams will value the potential investee company, negotiate a deal, and agree a Term Sheet outlining the basic structure of the deal.
Post Investment Monitoring and Value Enhancement
- Investor director - issues arising on appointment
- Goal Setting
- Reporting
- Value Enhancement
- Exit routes, and,
- Why do deals fail?
Tutor information
All tutors will be drawn from a venture capital background; they will be experienced in the execution of private equity transactions
Nick Gurney-Sharpe - CIO 3en Ventures
A Hampshire-based venture capital fund which has been in operation for around 3 years which focuses exclusively upon pre-revenue/early stage technology businesses; its aim is to assist in the transformation of innovative technology into sound, high growth businesses.
Previously Nick was with CDC Capital Partners where he ran the FMCG/Retail/Pharma investment team responsible for new business generation and appraisal, leading small specialist sector team.
From 1987 onwards Nick was with 3i PLC where he was responsible for investment support within FMCG, industrial, and service companies across the U.K.
Martin Rigby - CIO of ET Capital
After completing a Cranfield MBA, he joined the Cambridge office of 3i as an Investment Controller and specialised in investing in start up and early stage high technology companies.
In 1988 he founded Egan & Talbot, a consultancy specialising in venture and corporate finance advice to un-listed growth companies. He set up ETCapital Limited in 1992.
Martin occasionally lectures on venture capital at Cranfield Management School, and read history for his first degree at New College, Oxford.
Nick Gross - Corporate Partner, Coffin Mew
Nick trained with the firm, qualifying as a solicitor in 1985, and being made a partner in 1988.
Nick now specialises in corporate finance work, including company and business sales and purchases, corporate restructuring and funding work.
He is a well-known and respected member of the business community in the Solent region and has been recognised by Chambers and Partners as "smart", and having "real business understanding".