COURSE
NUMBER: MBA295B.1
This course is cross-listed
with the Evening-Weekend MBA Program
COURSE
TITLE: Venture
Capital and Private Equity
UNITS
OF CREDIT: 3
units
INSTRUCTORS: Terry Opdendyk,
C. Sean Foote & Dino Boukouris
E-MAIL
ADDRESSES: terry@onset.com , sean@cocreationcapital.com,
dino@momentumcyber.com
CLASS
WEB PAGE LOCATION: bCourses
CLASS
MATERIAL LOCATION: Study.Net
295B
Venture Capital & Private Equity is structured as an experiential course.
Class 1 is full of material critical to getting the best possible experience
and learning from the course. As such, we will be observing an automatic
drop policy: if you do not attend class 1, you will be dropped from
the course.
PREREQUISITE(S): It is strongly
recommended that MBA295A Entrepreneurship be completed prior to taking this
course. If you haven't taken MBA295A, your background should include business
plan development and opportunity assessment in an early-stage growth company or
venture capital organization. Instructors will determine if a candidate meets
the prerequisite criteria.
CLASS
FORMAT: The
course is organized in four modules, each of which represents a key element of
the Venture Capital Cycle:
Module
1: Industry Overview, Fund Structure and Individual Career
The first module of "Venture Capital and Private Equity" examines how
venture capital firms are organized and structured. The structure of private
investment funds, while often arcane and complex, has a profound effect on the
behavior of venture investors. Consequently, it is as important for the
entrepreneur raising venture capital to understand these issues as it is for a
partner in a venture fund.
Module
2: Investing Toolkit: Investment Selection, Valuation and Terms
The second module of the course will prepare you for what many perceive as the
core of the venture capital business: identifying opportunities and making
investments. We will consider the elements of what makes a good opportunity, as
well as what makes an opportunity a good investment for a specific fund. We
will master the key tools of assessment, valuation, structuring and terms. We
will investigate the interactions between venture capital investors and the entrepreneurs
they finance. These interactions are at the core of what venture investors do.
Module
3: Stages and Styles of Investing: Seed, Corporate Venture, Impact
Investing, Private Equity
The third module of "Venture Capital and Private Equity" examines
several of the many stages and styles of investing, and their
inter-relationship, from the initial seed investment, through the financing of
growth, and the involvement of corporate partners. Corporate venturing presents
special challenges to the corporation, its venture co-investors and the
entrepreneur. A special segment will investigate the world of impact investing
and probe for overlaps in processes and structures.
Module
4: Money in and Money out: Fundraising, Liquidity and Limited Partners
Our final module will look in depth at the needs and perspectives of
institutional limited partners, and the role of new structures like
“funds-of-funds”. We will also investigate the various avenues by which
venture investors achieve liquidity so they can provide returns to their
investors. The recent volatility of the IPO market, both locally and globally,
will be explored.
REQUIRED
READINGS:
· Venture Capital & Private
Equity: A Casebook; Lerner, Hardymon, and Leamon. 5th Edition. Boston, MA:
John Wiley & Sons, Inc., 2012
· Term
Sheets & Valuations, Alex Wilmerding, Aspatore/Thomson 2006
· The
text will be supplemented by other cases and readings, which will be posted to
the course’s web site on bCourses.
BASIS
FOR FINAL GRADE:
ABSTRACT
OF COURSE'S CONTENT AND OBJECTIVES:
Venture capital is core to our Silicon Valley high technology economy.
U.C. Berkeley is located in the ‘Mother Lode’ of this very special and unique
investment category. This course is an advanced offering for those who
intend to seek, or manage, venture capital funding. Accordingly, it is
appropriate for students who aspire to become CEO’s of entrepreneurial
ventures, partners of venture capital firms or managers of institutional funds
that invest in venture capital. The course will also benefit those who will
work in major corporations in roles that intersect with the venture capital
community, such as M&A, Business Development and CFO. More generally,
venture capital is a sub-category of private equity and shares many common
characteristics. However, this course only focuses on venture capital.
The course
will make extensive use of case studies and guest lecturers. Industry
experts, entrepreneurs, venture capitalists and those who advise them (such as
investment bankers and lawyers) will be frequent guests. We take extensive
advantage of the school’s geographic proximity to Silicon Valley to enrich the
course with exposure to industry leaders and emerging innovators.
Over the
past thirty-eight years, there has been a tremendous boom in venture capital,
accompanied by significant volatility and erratic economic returns. The
industry has gone through periods of boom and bust, but is broadly recognized
as one of the essential pillars of a vibrant entrepreneurial economy. The
practices of US venture capital are being emulated around the world. Yet
the last decade has seen significant instability and volatility in valuations
and funds flows. We will consider whether such fluctuations are unique, or
rather typical of these illiquid and imperfect high risk markets.
Recent experience indicates that the venture capital industry is in the process
of rapid evolution. Some challenge whether the investment results justify the
risk, while others, especially overseas, are aggressively working to build
local venture capital capabilities. Venture capital essentially is a cottage
industry with highly compensated craftsman struggling with many of the
structural issues of any industry, including: specialization, generational
change, managing growth, new entrants, geographic concentration and
globalization. While challenges remain, the industry seems destined to play an
import continuing role locally and globally. We will consider all these
strategic issues as well as the basic tools of the trade.
BIOGRAPHICAL
SKETCHES
Terry
Opdendyk:
Terry Opdendyk has specialized in working with technology based start-ups for
more than 40 years. He founded ONSET Ventures, a premier Silicon Valley venture
capital firm, in 1984. He is Managing Director and General Partner at ONSET.
Prior to
launching the firm, Terry was president of VisiCorp, guiding the software
publishing company from inception into an industry leader. Early in his career,
Terry worked as a technical manager for Hewlett-Packard as a part of the
original group of individuals that started HP’s computer business. He later
headed Intel Corporation's microcomputer systems business, microprocessor
architecture activities, human resources and several international ventures.
At ONSET
Ventures, Terry maintains a broad spectrum of investment interests including
software, computing and communications infrastructure and the leverage of big
data. He has served on the boards of both public and private companies, such as
Adaptive Insights, Callidus Cloud, Nektar Therapeutics, Nok Nok Labs
and Placecast.
Terry is a
passionate teacher, working with students each year focusing on the
fundamentals of building successful businesses. He is a Fellow at the Lester
Center for Entrepreneurship at the Haas School of Business, University of
California where he has taught the Venture Capital and Private Equity class
since 2004.
Terry
received a B.S. from the Michigan State University Honors College and a M.S.
from Stanford University.
Sean
Foote:
Sean Foote has been a venture capitalist investing in early stage companies for
the past 16 years, currently as co-founder and Managing Director of his new
firm Co=Creation=Capital. He also actively assists corporations in their
venture capital activities.
His prior
firm, Labrador Ventures, invested in more than 100 companies, including
Hotmail, Pandora, and RocketFuel. He has co-founded several
entrepreneurial companies, and spends his non-profit time in the fields of
impact investing and education.
Before
venture investing, Mr. Foote was a management consultant with Boston Consulting
Group, working in a wide range of industries such as telecom, computers,
healthcare, banking, and automotive on topics ranging from strategic alliances
to Internet strategies. Mr. Foote also worked as a systems engineer for
AT&T Bell Laboratories, developing artificial intelligence systems for
testing the most complicated telecommunications networks.
Since 2003,
Mr. Foote has been teaching venture capital and private equity at the
University of California's Haas School of Business. He has taught a
course in impact investing at Stanford University, with a real time simulcast
to 75 business school campuses around the country. He has also taught
classes on entrepreneurship at the University of Michigan's Business School,
University of Virginia's Darden School of Business and University of
Pennsylvania's Wharton School of Business. He has written and published
cases on venture capital and microfinance.
Mr. Foote
received his undergraduate degree in Electrical Engineering from the University
of Missouri Rolla (1988), and his MBA from the University of Virginia's Darden
Graduate School of Business (1993), where he received the Shermett Award
granted to the top 3% of students.
Dino
Boukouris:
Dino Boukouris has spent 14 years in the technology industry with expertise in
cybersecurity, finance, strategy, operations, entrepreneurship, venture capital
and engineering. Dino has been a speaker at Cybersecurity conferences including
Structure Security, Global Cyberspace Coop Summit, IoT Security Panel, M&A
East 2017, as well as at numerous private events and corporate gatherings.
Dino is a
Founding Member & Director at Momentum Cyber, the premier trusted strategic
advisor to the cybersecurity industry. Dino was a Founding Member &
Director of Momentum Partners, the precursor to Momentum Cyber. Prior, Dino
spent much of his career working with and advising venture-backed and
bootstrapped start-ups, including Cameron Health, a medical device start-up
which was acquired by Boston Scientific for $1.35B.
Dino is a
Lecturer at the University of California, Berkeley – Haas School of Business.
Prior, Dino has been a lecturer, GS instructor and mentor for the MBA, and
Executive MBA programs for Venture Capital and Private Equity, Business Model
Innovation, Entrepreneurial Strategy, and Managerial Economics.
Dino
received his MBA with Honors from UC Berkeley, where he was President of his
MBA program, a Haas Venture Fellow, a Turner Fellow, and Dean’s Scholar. Dino
also graduated Summa Cum Laude with a B.S.E and M.S.E. in Mechanical
Engineering from the University of Michigan.