Venture Capital

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Venture Capital

• Elizabeth Bolling
• Tamara Durand
• Tara Fortune
• Joe Saunders

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Venture Capital

• Industry
• Successful Startups
• How Venture Capital Works
• What About Bain

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Venture Capital Industry

• What is venture capital?
• Equity for startup companies projects

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Responsibilities

• What do venture capitalists do?
• Finance new and rapidly growing companies
• Purchase equity securities

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Involvement

• How are venture capitalists involved with
  companies?
• Invest in a percentage of the business
• Have a long term perspective
• Play an active role in the company
• Use lessons from past experiences

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Successful Startups
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Why Venture Capital?

• Alternative Funding
• Finance Growth

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How Venture Capital Works

• Seed (Internal)
• Series A (External)
• Series B (External)
• Working Capital (Self-financed)
• Series C (External)
• IPO or Acquisition

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How Venture Capital Works

• Venture Capital Fund
• Investment
• Equity Position
• Pre-Investment Valuation
• Post-Investment Valuation
• Money Management Success

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What About Bain?

• Bain Capital Ventures
• Bain Company

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Bain Company

• Private Equity
• Due Diligence Process
• Initial Public Offering
• Portfolio Profit Improvement

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Bain Capital

• Absolute Return Capital
• Bain Capital Private Equity
• Bain Capital (Europe) Limited
• Bain Capital Ventures
• Brookside Capital
• Sankaty Advisors

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Bain Capital Ventures
Model is Based on 4 Principles

• Differentiated Approach
• Extensive Resources
• Philosophy and Culture
• Management Partnership

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Venture Capital

• Industry
• Successful Startups
• How Venture Capital Works
• What About Bain

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Exam Question
How Do Venture Capitalists determine equity
percentage?

• Outstanding stock divided by investment
• Business value divided by contribution
• Pre-investment value divided by Post-investment
  value
• Investment divided by outstanding stock

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Works Cited

• www.bain.com
• www.baincapital.com
• www.msnbc.msn.com/id/7159813/
• www.theatlantic.com/doc/200509/pappu3
• www.nvca.org