Workshop details

 

VC mindset

  • The key players in venture financing

  • Why companies raise investment

  • Why investors invest in VC and companies in CVC

  • How a VC fund works

  • Returns on VC investments

  • Understanding risk and return

  • Dealing with fear

  • The importance of failure

Corporate venture capital overview

  • Developing and executing a CVC strategy

  • Structuring, managing and measuring a CVC program

  • Strategic versus financial returns

  • Short-term versus long-term goals

  • Funding levels

  • Staffing and compensation

  • Portfolio management

  • Reporting structures

  • Avoiding pitfalls

  • Accelerators and incubators

  • Direct investment

  • Fund-of-Funds

Identifying and evaluating investment opportunities

  • Evaluating scalability

  • Product versus service

  • Key elements for success

  • Value proposition and innovation

  • Market opportunity

  • Competitive strategy

  • Evaluating start-up business models

  • Innovative business models

  • Revenue models

  • Cost structures

Business models and forecasting

  • Forecasting revenue, expenses and cash flow

  • Creating financial forecasts for start-ups

  • Top down and bottom up revenue forecasts

  • Cash flow forecasts

Valuation

  • Valuing start-ups

  • Using comparables

  • Discounted cash flow (DCF)

  • VC method

  • Pre-money and post-money valuation

  • Calculating investment ROI including dilution

  • Exit strategies

VC deals

  • VC investment process

  • Key agreements

  • Stages and sources of funds

  • Cap tables

  • Key terms of VC fund agreements

  • Term sheets and deal structure

  • Key elements of a venture deal

  • Investor entrepreneur negotiations

 

About Expara CVC workshops

Corporate venture capital (CVC) is fast becoming a must-have, not just for technology companies but for any large company.  A new wave of disruption is sweeping across industries.  Venture funded start-ups like Uber and Airbnb appear to come out of nowhere to threaten traditional players in the transportation and hospitality sectors. The rapidly falling cost of creating and distributing game-changing products and services creates both serious threats and huge opportunities for established players.  If large companies are not deeply integrated into the start-up and venture capital enterprise ecosystem, how will they successfully innovate and compete in this fast-changing environment?

 

In the US, 50% of Fortune 50 and 33% of Fortune 500 companies already have a CVC program. Corporates in SEA are starting to realize the benefits of CVC, both as offensive and defensive competitive weapons.  But starting and successfully executing a CVC program is not easy; the median lifespan of CVC programs has been around one year, while generating returns from venture capital typically requires 5-10 years.

Corporates entering CVC face two main challenges:  1) understanding the fundamental venture capital process and 2) adapting this process to benefit the corporation.  Expara’s Corporate Venture Capital workshops will enable corporates to do both:  gain a solid understanding of venture capital and learn how to develop and execute a CVC strategy while avoiding the pitfalls that have caused so many CVC programs to fail. Skills developed will include how to: 

 

  • Develop and execute a corporate venture capital strategy

  • Identify new venture investment opportunities

  • Project revenue and cash flows for new ventures

  • Value a new venture

  • Structure and negotiate venture deals

Workshop structure

The workshop program consists of 6 modules, which can be taught individually, in groups, or as a six-module course.  The program can run consecutively or spread out over time, with a maximum run time of 5 ½ days.  During the workshop sessions participants will evaluate investments in new ventures, create a forecasted financial plan and valuation for an early-stage business venture, engage in simulated negotiations between entrepreneurs and investors and will learn how to structure venture deals.

 

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Our hands-on approach enables participants to immerse themselves in a simulated venture capital investment context. Participants will gain practical experience in applying the knowledge acquired and further develop key skills and strategies for success. The workshop empowers participants with the ability adopt both the perspective of the investor and entrepreneur. Participants will be able to evaluate the attractiveness of a start-up business/financial plan as an investment proposition as well as understand the impact of the investment deal terms on both the entrepreneur and investor.

 

The activity segments of the workshop feature both case studies drawn from real-world situations and Expara’s award-winning VC-Start-up Negotiation Experiential Exercise Investment which involves strategy, persuasion, and skill. Players adopt the role of either VC investors or investee companies. Players will compete within and between roles to structure key investment deal terms, identify the other party’s interests as well as devise strategies to negotiate for optimal outcomes.  The case studies can be customized for specific industry sectors of interest to the participants.

CVC will be covered both on its own, in the CVC module and throughout the other modules, as whenever there are differences between CVC and financial venture capital in the application of basic venture capital approaches, these will be highlighted and discussed in the workshops.