14: Introduction to Venture Finance

Date:

Tuesday, May 11, 2010

Summary: How do entrepreneurs set priorities when gathering financial resources? Today's session introduces the topic of venture finance.

Quote of the Day: "Success is to be measured not so much by the position that one has reached in life as by the obstacles which he has overcome while trying to succeed." ~ Booker T. Washington

Guests (Click for Bios)
Ravi Belani, Draper Fisher Jurvetson

Study Questions (Policy on Study Questions.)

What are the primary reasons and benefits to create a business plan? What are the most important sections and why? Skim one of the two sample business plans in Appendix A of Technology Ventures, depending on your personal preference for either information technology or life science technology. Note the different outline and format of both plans.
In your opinion, what is the most important risk to reduce in a startup? Is it technology, market, team, or financial? Why?
How do high tech entrepreneurs finance their ventures? What do venture capitalists do? What is the structure of a typical venture capital firm? How does a typical firm operate?

Team Effectiveness Exercise
Please confirm completion of the "I like ... and I wish" team exercise from Session 11 by emailing the e145-homework@lists alias by 9 AM. Use the standard header format with "Team Effectiveness" as the name of the assignment.

Required Readings (Policy on Required Readings.)