Venture Capital
Offered By: RWTH Aachen University via edX
Course Description
Overview
As an entrepreneur and founder of a start-up company, you need money to build a successful business. You need capital to hire a great team, build a prototype, develop a market and increase your market share. Where do you get this kind of capital? Simple: from venture capitalists. But how do you get this capital? Tricky question! Good thing there's an introduction to venture capital.
In this introductory course on venture capital, you will learn how to get money for your start-up. You will learn what venture capitalists are and how they think. You will learn what their motives are, how they invest and what they expect from you. Have you ever heard of this thing called a term sheet? Whether you've heard the term before or not, we'll explain what it means and what you should be aware of.
Our tips and tricks and dos and don'ts should make your work with venture capitalists easier. We also explain what happens when a VC joins and leaves your company. This course is truly practice-orientated and you will benefit from this course in your day-to-day dealings with venture capitalists.
Syllabus
Week 1: Introduction - What is venture capital?
You will learn what venture capital is and how it differs from other sources of early-stage financing. We will also explain the VC fund structure and its implications.
Week 2: Pre-investment phase - How do I acquire venture capital?
You will learn whether venture capital is the right source of funding for you. You will also receive lots of helpful information on how to select and approach venture capitalists, increasing your chances of making it to your next meeting with a VC.
Week 3: Term sheets (Basics & economic terms) - What are key economic terms in term sheets?
This week, we will break down the essential economic terms found in term sheets, for example equity stakes, liquidation preferences, and anti-dilution provisions, to help you understand how these terms impact your financing deal.
Week 4: Term sheets (Control & other terms) - What are key control & other terms in term sheets?
We will explore the control terms in term sheets, for example voting rights, along with other important clauses like vesting, to ensure you are well-versed in the full scope of investor agreements.
Week 5: Post-investment phase - How do I work with a VC and what are potential exit options?
This session focuses on managing the relationship with your venture capitalists post-investment and understanding the different exit options to maximize your venture's success.
Week 6: Common pitfalls - What should I watch out for to avoid common mistakes?
We will identify and analyze common pitfalls in venture capital, such as choosing the wrong investors, misaligning expectations and provide practical advice on how to avoid these mistakes to ensure a successful partnership and sustainable growth.
Taught by
Prof. Dr. Malte Brettel
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