The objective of this program is to provide knowledge and detailed understanding of startups modeling, fundraising and valuation followed in the equity industry. This course will help participants to improve their knowledge and develop their professional skills required in the startup company and venture industry or dealing with equity professionals.
Overview
The Course curriculum includes a business plan, fundraising, and valuation process for successfully raising equity for the startups including e-commerce companies. This training also provides investment, due diligence, and negotiation processes from the startup’s companies as well as investors’ perspectives.
Upon completion of this course, participants will have a clear understanding of the critical processes, challenges and issues faced in the industry as well as be able to differentiate between various transaction structures, their implications and provide an explanation on how to analyze and negotiate term sheets.
It will also have a case study having a complete process of private equity investments which will provide participants with more significant and valuable knowledge that will be useful in their business and profession.
Who should attend
All individuals who want to improve their knowledge and further develop their professional skills in the private equity space
- Startup companies who are planning to raise capital
- Professionals who are seeking a career in venture capital
- Family offices and strategic departments of business which are planning to invest in the startup’s companies
- CEOs, head of business units, departments and decision-making personnel – who want to deal or currently dealing with venture equity firms
- Middle to senior managers including analysts/ investment bankers/ finance professionals
- Candidates who wish to set up venture equity business
Methodology & Trainer
The non-theoretical methodology which includes interactive discussions, case studies, interactive games and assignments to understand the concepts and their applicability in current economic and financial environment.
All our trainers are carefully chosen by us and possess a rich and vast experience in the financial sector. Course is conducted by an experienced training consultant having more than 17 years of industry experience with some of the world’s leading business institutions, specializing in corporate finance, investment banking, and private equity.
- Introduction to business valuations
- Various types of traditional valuation methodologies
- Why conventional valuation methods may not apply to start-ups
- Key pitfalls
- Various methods of valuation – DCF, Multiples, comparable, etc
- Discounted Cash Flow valuation and different multiples-based methodologies
- Importance of discount rate and multiple adjustments
- Analyzing the number and modification of the projection
- Issues with traditional methods in applying in start-ups companies
- Some new ways to value startups
- The venture capital method
- The scorecard method
- The risk factor adjusted method
- The simplified net present value method
- Calculation and impact of critical ratios like churn rate, burn rate, revenues run rate, Conversion rate, Customer acquisition, cost Customer life time value
- Various other ways to evaluate the startups
- Understanding returns for the investors
- How to do return analysis at the time of investments and exits
- Use of data for sensitivity analysis
- Identifying suitable scenarios and sensitivities and their impact on returns
- How to calculate the funding requirement
- Fundraising process
- Identify and target the investors
- Secret of successful fundraising
- How to calculate the total stake to begiven to investors
- Structure of pitch presentation
- How to win investor confidence
- Keys terms and their impact on business – Board seats, Liquidation, preferences, Anti-dilution clauses, vesting of equity, exits, etc
- How to negotiate useful terms sheets
- Key points to focus while negotiating shareholders agreement
- How to create your due diligence plan
- How to prepare for the investor due-diligence
- Manage the due-diligence process
- Key focus areas-financial models, legal, accounting due-diligence
- How to resolve post due diligence observations
- What are the various structures for investments?
- Direct Equity – private market, public market, listed and unlisted market
- Equity-linked debt – mezzanine funding, convertible securities, etc
- Debt funding – bridge funding, subordinated debts, securitization and structured finance
