Venture Capital and Startup Investing

About this course

Venture Capital and Startup Investing (ENT 405) is an applied elective in the Entrepreneurship and Venture Capital concentration. How VC funds work, how deals are sourced and diligenced, term sheet negotiation, and portfolio construction under power-law returns.

Prerequisites: ENT 404 recommended. Length: 6 weeks. Assessment: 50% applied project, 30% case work, 20% knowledge checks.

What you will be able to do

• Explain GP/LP incentives and fund lifecycle mechanics
• Screen deals with an investment thesis and kill criteria
• Run due diligence across team, market, product, and economics
• Read term sheets: valuation, preferences, pro-rata, and control
• Model portfolio construction and power-law outcomes
• Write an investment memo with clear risks and milestones

How the course is organized

Six units, 24 lessons (four per unit). Work in order.

Unit	Topic	Lessons	You will
1	Venture Capital Industry and Fund Economics	Foundations of Venture Capital Industry and Fund Economics · Key Concepts and Vocabulary in Venture Capital Industry and Fund Economics · Frameworks for Analyzing Venture Capital Industry and Fund Economics · Venture Capital Industry and Fund Economics: Applied Business Decisions	Apply venture capital industry and fund economics to your venture
2	Sourcing, Screening and Investment Themes	Understanding Sourcing, Screening and Investment Themes · How Sourcing, Screening and Investment Themes Works in Practice · Evaluating Trade-offs in Sourcing, Screening and Investment Themes · Sourcing, Screening and Investment Themes: Case Analysis and Recommendations	Apply sourcing, screening and investment themes to your venture
3	Market, Team and Product Diligence	The Strategic Logic of Market, Team and Product Diligence · Methods and Models for Market, Team and Product Diligence · Evidence, Metrics and Assumptions in Market, Team and Product Diligence · Market, Team and Product Diligence: From Analysis to Action	Apply market, team and product diligence to your venture
4	Venture Valuation and Ownership	Core Principles of Venture Valuation and Ownership · Designing an Approach to Venture Valuation and Ownership · Common Risks and Failure Modes in Venture Valuation and Ownership · Venture Valuation and Ownership: Practical Decision Exercise	Apply venture valuation and ownership to your venture
5	Term Sheets, Governance and Portfolio Support	The Business Context for Term Sheets, Governance and Portfolio Support · Tools and Techniques for Term Sheets, Governance and Portfolio Support · Managing Complexity in Term Sheets, Governance and Portfolio Support · Term Sheets, Governance and Portfolio Support: Executive Synthesis	Apply term sheets, governance and portfolio support to your venture
6	Investment Memos, Returns and Exit Outcomes	Integrating the Elements of Investment Memos, Returns and Exit Outcomes · Advanced Questions in Investment Memos, Returns and Exit Outcomes · Implementation and Measurement in Investment Memos, Returns and Exit Outcomes · Investment Memos, Returns and Exit Outcomes: Final Applied Review	Apply investment memos, returns and exit outcomes to your venture

Applied work

• Investment thesis one-pager
• Due diligence checklist
• Term sheet comparison memo
• Sample investment memo