Early stage capital

Lectures: 2 sessions / week for seven weeks, 1.5 hours / session

If you are an entrepreneur, one of your priorities, in addition to building your company, is ensuring you have enough money at the right times. Early Stage Capital will consider a broad range of questions that entrepreneurs deal with on this front:

These are key questions that face all entrepreneurs in 2010, particularly first-time entrepreneurs. This course aims to prepare you for these decisions, as either a potential entrepreneur or venture capitalist.

In addition to standard lectures, the course consists of two primary components: live case studies and simulation exercises. Using live interactions with leading figures in the venture finance community, most of the class sessions will analyze fundamental strategies of the venture capital investment process and the critical importance of the relationship between entrepreneur and investor. As well, we will have a tactical focus on demystifying the legalities and jargon of the term sheet and the "A Round" financing process. Significantly for 2010, we will also frequently consider the rapid and arguably fundamental change in VC today as the "lean startup" model threatens much of the traditional role and value of the venture investor.

During the course, students will work in teams to apply these principles in practical negotiations. In two rounds of simulations, the teams will travel to the offices of practicing lawyers and venture capitalists and attempt to structure the best deal for their businesses. These exercises are designed to both develop a practice-oriented understanding of the venture capital process, as well as to foster relationships that can help students as they develop businesses.

Participation in class will account for one-third of the grade. Students should be prepared to discuss the topic in each class session. There will be friendly cold calling — these are not clapping-for-credit war stories but rather live case studies in which participation is critical.

As guests often provide materials quite late, you are responsible for all homework readings posted at least 24 hours before class. Attendance at every class is expected.

This will account for two-thirds of the grade. Grading will primarily reward the process of the exercises, including effectiveness of teamwork and thoroughness of written work product, rather than any particular result achieved in the simulation.

Very Important: There will also be an intra-team evaluation at the end of the course (you get to say who did the work).

Find a Lawyer

Lawyer strategy round

VC negotiation round

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