Professional Documents
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Venture Capital Financial Management
Venture Capital Financial Management
Financial Management
•Akshath Kale – 69
•Anish Bajari – 72
•Ronak Surana – 101
•Sanika Sankhe – 107
•Sharda Saini – 110
•Yash Kadam – 127
VENTURE CAPITAL
Decide on investment based on alignment with investment thesis, risk, and return
Investment Decision expectations.
Term Sheet Present terms including funding amount, valuation, equity, and governance rights.
Negotiation
Legal
Draft and finalize legal agreements including investment and shareholder
Documentation and agreements.
Closing
Provide strategic guidance, industry
Value Addition and expertise, and networking opportunities.
PROS OF PE PROS OF VC
•Loss of Control
•Dilution of Ownership
•Alignment of Interests
•Debt Burden
•Pressure for Growth
•1. Deal Origination
•2. Introductory Meeting
•3. Due Diligence/Internal Analysis
•4. Negotiation and Investment
•Seed Stage
•Series A
•Series B
•Series C
•Later Stage
Deal Structuring:
• Valuation
• Term sheets
• Conversion Rights
• Liquidation Preferences
TECHNICA
L ASPECTS Due Diligence:
• Market Analysis
• Financial Analysis
• Management Team Evaluation
• Technological Due Diligence
EXIT
STRATEGIES
VC firms target a return on investment through an
"exit" from their portfolio companies. Common
exits include:
• Acquisition: Another company purchases the VC-
backed startup.
• IPO: The startup raises capital by selling shares to
the public.
• Secondary Sale: The VC firm sells its stake in the
startup to another investor.