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ENT 405 · Unit 1 of 6

Venture Capital Industry and Fund Economics

Venture Capital and Startup Investing

Start unit · 4 lessons →

Learning objectives

  • Explain GP/LP incentives and fund lifecycle mechanics
  • Apply "Venture Capital Industry and Fund Economics" to a real venture decision
  • Contribute to your Investment thesis one-pager deliverable

Unit overview

#LessonCore idea
1Foundations of Venture Capital Industry and Fund EconomicsCore frameworks for this unit
2Key Concepts and Vocabulary in Venture Capital Industry and Fund EconomicsCore frameworks for this unit
3Frameworks for Analyzing Venture Capital Industry and Fund EconomicsCore frameworks for this unit
4Venture Capital Industry and Fund Economics: Applied Business DecisionsCore frameworks for this unit

Complete all four lessons, then finish unit assessments on this page.

Unit assessment

Complete each section below. Score 80%+ on the quiz to finish this unit's assessment.

50% applied project30% case work20% knowledge checks

Exercises

Apply what you learned in this unit with structured practice.

ExerciseApplied practice: Venture Capital Industry and Fund Economics45 min
Complete a focused practice exercise on **Venture Capital Industry and Fund Economics**. 1. Choose a real company, product, or situation you know. 2. Apply one core framework from this unit to analyze it. 3. Write your analysis in 300–500 words with a clear recommendation. 4. Cite at least one credible source.

Deliverable

300–500 word analysis document saved to your portfolio under ENT 405.

Rubric

  • • Framework applied correctly (not just named)
  • • Specific evidence from a real example
  • • Clear recommendation with tradeoffs acknowledged
  • • Professional writing with source citation
ExerciseDrill: Venture Capital Industry and Fund Economics30 min
Work through the practice problems in the unit lesson without looking at notes. Then check your work against the lesson and write a short reflection: - What you got right - One mistake you caught - One concept to review before the next unit

Deliverable

Problem solutions + 150-word reflection in your ENT 405 workbook.

Rubric

  • • Attempted all practice items before checking answers
  • • Honest reflection on errors
  • • Identifies a specific review action

Case analysis

Analyze a case using frameworks from this unit.

CaseCase analysis: Venture Capital Industry and Fund Economics60 min
Analyze a real business case through the lens of **Venture Capital Industry and Fund Economics**. Choose a public company event, HBR-style case, or documented decision. **Deliverable structure:** 1. Situation summary (150 words) 2. Analysis using this unit's frameworks (400 words) 3. Recommendation (150 words) 4. Risks and what would change your mind

Deliverable

2-page case write-up in your portfolio.

Rubric

  • • Case facts are accurate and sourced
  • • Analysis uses unit frameworks explicitly
  • • Recommendation is justified with tradeoffs
  • • Risks are specific, not generic

Knowledge quiz

Check your understanding before marking the unit complete.

1. Arbor Peak Fund IV has $250M commitments, $50M lifetime fees, and $100M reserved for follow-ons. How much is available for first checks?

2. RelayOps raises $8M at $32M pre-money. What is post-money valuation?

3. Arbor Peak invests $5M in RelayOps at $40M post-money (simple ratio, no pool). What ownership percent?

4. Which metric counts only cash distributed to LPs, not paper marks?

5. A VC fund's power-law model implies most companies return 0-1x. Why still invest in risky startups?

6. RelayOps needs $50M exit proceeds for Arbor Peak at 20% ownership. Minimum exit valuation?

7. Which is NOT a typical closed-end VC fund feature?

8. Fund IV deployment: RelayOps uses $5M initial + $5M planned reserve. What share of a $100M first-check pool is the initial check alone?

Next unit: Sourcing, Screening and Investment Themes →