Ultimate Venture Capital Guide - Terms, Excel, Cap Tables

Learn about venture capital terms and term sheets, setting up Excel for financial modelling, and cap table calculations

What you'll learn

Start to become a great Venture Capital and Growth Equity investor, investment banker, founder, or transaction lawyer

Learn about important Venture Capital and Growth Equity concepts, including, share classes, structures, voting rights, valuations, ownership, and much more

Learn about term sheets, how to use and structure them and the relevant investment terms contained within (such as valuation, primary, secondary and many more)

Learn how to handle Excel like a pro for financial modelling (set-up, shortcuts, formatting)

Learn why cap tables are important and how to use them correctly

Learn to build a cap table from scratch

Learn to model different investment rounds from inception over Series A/B/C

Requirements

NO Excel or finance experience needed

Description

In this course you will learn all the important concepts related to venture capital and growth equity terms, term sheets, setting up Excel for financial modelling, as well as around cap tables and ownership calculations.The course helps investors, investment bankers, analysts and associates, founders, CFOs, and transaction lawyers to become knowledgeable in these core concepts and enable them to set the foundation to model them professionally. After completing the course, you have a firm understanding of the venture capital/growth equity terms and will be able to start modelling your first transactions and their impact on the shareholder base.I will give you all the material and templates you need to start modelling the impact of also more complicated investments on the ownership structure of any business.Course structure:We will start by discussing term sheets and the terms contained within to get a common understanding of the basics. We will cover topics such as pre- and post- money valuations, primary and secondary investments, and most other relevant terms. After this first part, you will be able to draft your own term sheets (I will also provide you with a draft template).We will then begin to prepare you to put those concepts into practice and will set-up your Excel together for financial modelling. We will cover the most important aspects from core Excel settings, over formulars and shortcuts, to formatting and best practices so you have the basics to start crafting professional financial models.We then continue to operationalize the first and second part of the course by looking into practical examples of cap tables. We cover the purpose of cap tables and what they can help you with as well as why you need to be well versed when it comes to ownership/shareholding calculations.Then we will jointly build a cap table from scratch. We start building your skill set with a simple example of a cap table at the inception of a company. Using this example, we enhance your understanding by adding different complications from a Seed round to a Series C investment round so you get a firm grasp on the most important mechanics and enable you to model your own investment rounds.We will then wrap up the course together and I will give you all the material you need to get to modelling and drafting term sheets yourself.If you have any questions about or beyond the course, I would be delighted to answer them!

Overview

Section 1: Introduction

Lecture 1 Introduction

Section 2: Section 2: Term sheets and important concepts

Lecture 2 Summary

Lecture 3 What is a term sheet

Lecture 4 Term sheet structure

Lecture 5 Investment, primary, secondary, Pre- & Post-money valuation

Lecture 6 Liquidation preference, participating & non-participating, seniority

Lecture 7 Dividends, rate, cumulative, non cumulative

Lecture 8 Anti dilution protection, down rounds, weighted average, full ratchet

Lecture 9 Drag along, tag along

Lecture 10 Voting & Information rights

Lecture 11 Employee share options, ESOP, Incentivation

Lecture 12 Founder vesting, vesting period, cliff

Lecture 13 Representations & Warranties

Lecture 14 Non-compete, non-solicitation

Lecture 15 Due dilligence, timeline, cost cover

Lecture 16 Conditions precedent

Lecture 17 Governing law, juricdiction, dispute resolution

Lecture 18 Confidentiality

Lecture 19 Signing & closing

Lecture 20 Outro

Section 3: Excel basics for financial modelling

Lecture 21 Intro & overview

Lecture 22 Basic Excel settings

Lecture 23 Basic Excel Settings interim summary

Lecture 24 Why you should use shortcuts

Lecture 25 Initiating short cuts with ALT

Lecture 26 Basic CTRL short cuts

Lecture 27 Other important short cuts

Lecture 28 Functions and formulars

Lecture 29 Format menu

Lecture 30 Quick summary

Lecture 31 How to use formatting

Lecture 32 Custom formats and codes

Lecture 33 Outro

Section 4: Cap tables and ownership calculations

Lecture 34 Intro & overview

Lecture 35 Purpose and views of the cap table

Lecture 36 Initial cap table example

Lecture 37 Example - raising a seed round

Lecture 38 Seed round example - valuation, PPS, primary

Lecture 39 Seed round example - adding the first investors, additional shareholders

Lecture 40 Series A example - raising additional capital, adding new share classes

Lecture 41 Series A example - liquidation preference and wrap up

Lecture 42 Series B example

Lecture 43 Series B example - secondary and discounts

Lecture 44 Series B example- Employee share option pool (ESOP)

Lecture 45 Series B example - putting everything together I

Lecture 46 Series B example- Putting everything together II

Lecture 47 Fully diluted vs not fully diluted view

Lecture 48 Outro & summary

Investment bankers and analysts starting their carreer,Investment Fund Analysts and Associates,Start-up founders looking to learn about their business’s ownership development across investment rounds,CFOs looking learn about modelling of ownership structures and investment rounds,Lawyers looking to help their clients in a transaction,Everybody who wants to know more about a company’s' ownership and its development