MGT+481+New+Venture+Finance+Fall+2017

toc = When and Where = Lecture: 11:00 am - 12:15 pm, TR, Bidgood 119, August 23 - December 8, 2017 Office Hours: Wednesdays, 12:00 pm to 4:00 pm or by appointment, Alston 155

=Syllabus= Available on google docs =Assignments (near final)= Google docs =Schedule=

** August 24 **
Icebreaker Slides: How to read and discuss a case study media type="youtube" key="qwYOxToNePM" height="180" width="320" In-class case study: Spruce Irrigation Instructor's materials

**August 29 & 31**

 * August 29: Review assignments**

Lecture Slides Is FitBit Fit? media type="youtube" key="1T22QxTkPoM" height="180" width="320"
 * August 31: The big picture of new venture financing**

September 5 & 7
September 5: More big picture of new venture financing slides for Friends and Family Funding September 7: No lecture media type="youtube" key="wzpHB_otvYc" height="180" width="320"

September 12 & 14
GoGoGrandparent (an example of the build-up method for opportunity evaluation) More friends and family funding Amortize that F&F loan!
 * September 12**

Finish F&F financing; some notes about convertible debt Quiz 1 sent out on September 14
 * September 14**

Startup Documents, Y Combinator Convertible Notes, SeedInvestor.com Some thoughts on convertible debt, Fred Wilson AVC.com Has convertible debt won? And if it has, is that a good thing?, VCAdventure Why Convertible Debt Is A Sucker's Play, Burnham's Beat 2010
 * Related:**

September 19 & 21
Skill set: Financial analysis methods Blue Bottle Coffee Financing and Timeline

September 26 & 28
Slides (coming soon) - read your copy of Startup Valuation media type=custom key=29350471 Bonus material: Why Sara Blakely Thinks Being Underestimated Can Help Women in Business
 * How venture capital works (slides)**
 * Startup valuations**
 * Important file for you to play with numbers:** Startup Valuation Explorer File from Stephen R. Poland

October 3 & 5
Read: Antidilution: The Other Way VCs Take More Of Your Startup’s Equity (Crunchbase.com, September 26, 2017)

October 10 & 12
No lecture on October 10 Bonus Reading: Fred Wilson (AVC.com) on Swinging for the Fences, a short article that addresses the need for frameworks for measuring startup accomplishments. Read it!

media type="youtube" key="v5yxVuNDLmo" height="180" width="320"
 * SO BUMMED I'M MISSING DINOSAUR JR TONIGHT IN BIRMINGHAM!**

October 17 & 19
Term Sheets Ring Valuations RICE: Simple prioritization for product managers - We're talking abut METRICS
 * October 17**

Bonus Reading: How School Trains Us To Fail In The Real World

media type="youtube" key="rQafXaRkPC0" height="360" width="640" media type="youtube" key="8b2HSKc8-OM" height="360" width="640"
 * October 19**
 * Beatbox Co-Founders are our guests Class will be held in the Ferguson Center THEATER at 11:00 am **
 * Short-version Shark Tank pitch **
 * Meet the Beatbox Team **

And here is Team Beatbox's slides from Thursday's presentation

October 24
Stitch Fix IPO!

and here is the promised "constructed" cap table for Stitch Fix; I had to make assumptions about the pre- and post-money values; the IPO values should match up with the aggregated cap table in Stitch's S-1 document

Persevere or pivot? How Eric Ries's lean living became a global movement (zonedigital.com, 10/25/17) Your first ten customers, Stripe.com Millennials are shaking up these 7 industries (CNNMoney.com) 15 things you can do today to build wealth in the future (BusinessInsider.com)
 * Bonus reading for your fall break:**

October 31 and November 2
No lecture on 10//31; is that a trick or treat? View materials on venture capital
 * October 31**


 * November 1 - Spent the morning getting more medical images! If you need office hours with me, please text me at 205-394-7499 with your name.**

Guest speaker: Mike Wohl, Venture Capital Investor He won't be in town until 1:30 m on Thursday. :(
 * November 2**
 * Pro forma financials**

November 7 & 9
PWCMoneytree Report (2017) Y Combinator Series AA Term Sheet (PDF and customizable docs)
 * a little more on pro formas**
 * Term Sheets**

Term Sheets Slides
 * Here is your Quiz 8**

**The River Pitch Business Idea Competition**

 * Here are the agenda and instructions for participants in this competition!**

Quote of the day: "If you're not paying for the product, **you're the product**." Scott Galloway, LL2

Elsewhere: Where the STEM Jobs Are (and Where They Aren’t) and Ben Thompson of Stratechery: Goodbye Gatekeepers


 * While you guys are Friday nighting, I am reading...**
 * You're welcome, America!**


 * Search Funds**
 * Slides on search funds (in progress)**

media type="youtube" key="0Bo-RA0sGLU" height="393" width="645"
 * BONUS WEEKEND WATCHING - Elon Musk on starting a business**

November 14 & 16

 * No class on 11/14 to prepare for River Pitch**


 * 11/16: Discuss final team project**
 * Overview and Instructions for Team Project (google doc)**

November 21
No lecture - I will hold office hours during class time

media type="youtube" key="Y33xNa2L-e8" height="197" width="350"
 * SMILE!**

November 28 & 30
Work on team projects in class - Here is a template for you to use for Mobile Munchies cap tables Summary statistics of crowdfunding campaigns that got/didn't get follow-up venture capital investments Stanford d school note: Prototype to test

Bonus read: Evidence mounts that laptops are terrible for students at lectures (TheVerge.com, 11/27/17)
 * Stitchfix update!** From IPO To CEO, Here Are 6 Things To Know About Stitch Fix

December 5 & 7
What's happening to Seed and early-stage investments? Read Fred Wilson's insights on AVC.com Work on team presentations in class; final presentations on 12/7

=Readings= Roundup of 2017 VC Predictions and Tech Industry Reports - Medium.com (1/12/2017)

Financial Statements
Global Entrepreneurship Institute - What Financials Do We Need For Investors? How Investors Evaluate New Deals: Important Criteria And Template For Investment Memos - Hackernoon.com (6/2/2017) Tomasz Tunguz - The 10 Most Important Metrics In A Startup’s Financial Statements (12/13/2016) The Four Main Things Investors Look for in a Startup - 2x entrepreneur and venture capital investor Mark Suster covers the "four Ms" of criteria for startups

Money-Zine - Building an Income Statement (6/21/22017) Money-Zine - Analyzing Income Statements (6/21/22017) Accounting Coach - Introduction to Cash Flow Statement

Forbes - Mastering the Balance Sheet Can Make or Break A Startup (3/27/2014)

Preparing A Balance Sheet -- TDBank.com [|Preparing a Balance Sheet - TDBank.com This is an "Interactive Workshop"] [|How to develop a balance sheet - Coursera.org, Michael Pratt] video with transcript; an exceptionally plain-spoken explanation of balance sheets

Tools from Small Business Administration Course: How to Write a Business Plan
 * Balance sheet template (google sheet converted from SBA.gov)
 * Income statement template (google sheet converted from SBA.gov)
 * Statement of cash flows template (google sheet converted from SBA.gov)

Understanding New Venture Financing Terms
Tech Republic - Startup and Venture Capital Terms You Should Know (2/10/2014)

Business Structure and Governance
Entrepreneur - How to Choose the Best Legal Structure for Your Startup a basic overview of the pros and cons of the four most popular types of legal forms for business Choosing the Best Business Entity for Your Startup - Early growth Financial Services

Business Plans
Checklist - How to Write a Business Plan - SBA.gov (six-page interactive PDF checklist; useful if you don't want to miss any "boxes" as you write your plan)

Venture Capital
Guide to Venture Capital - Madison Park Group

Stages of investing
Seedcamp - How Does an Early-stage Investor View Early-stage Companies includes discussion of circumstances where an early-stage investor will pay a premium to invest Quora - What Metrics Do VCs Look for in Early-stage Companies?

IPOs Amendment to Fitbit IPO - November 9, 2015 (sec.gov) Amendment to Fitbit IPO - June 16, 2015 (sec.gov)

=Videos= A VC Reveals the Metrics They Use to Evaluate Startups — The Startup Tapes #031 (Focus on Scale Ventures) media type=youtube key=wLbl8TGiM8E width=560 height=315 width="560" height="315"

Michael Pratt: Why you should start with the business plan Coursera.org, 2015