Startup & Entrepreneurship

Due Diligence Masterclass

Toronto
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Startups Valuation and Fundraising

Introduction

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, et