RBNC designed 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

This practical program will be followed by 3 months of coaching after 2 days of training in class

How you will benefit

Being equipped with the foundation of a business plan, fundraising, and valuation process
Deep understanding of the investment, due diligence, and negotiation processes from the startup’s companies as well as investors’ perspectives
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
Practice on real case studies having a complete process of private equity investments

Who should attend

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

What you will cover

Module 1: Valuation: How to value the startups

Introduction to business valuations
Various types of traditional valuation methodologies
Why conventional valuation methods may not apply to start-ups
Key pitfalls

Module 2: Valuation Approach

Traditional Approach:

Various methods of valuation – DCF, Multiples, comparables, 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

New Approach:

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

Module 3: Calculation of investor returns and sensitivity analysis

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

Module 4: How to raise funds from investors

How to calculate the funding requirement
Fundraising process
Identify and target the investors
Secret of successful fundraising
How to calculate the total stake to be given to investors
Structure of pitch presentation
How to win investor confidence

Module 5: Key Terms and how to negotiate the same with investors

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

Module 6: Due Diligence

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

Module 7: Investment Structure

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, secularization and structured finance