Slide 4

Question 1

How venture capital works?

Answer 1

Definition: form of equity financing…
Different step of SU funding cycle:
1) idea: founder, FFF
2) products: angel investors, early-stage venture capital fund
3) business: late-stage vc fund, early employees, investment bankers/asset managers
4) PMF: IPO, M&A, private equity
The power law
Addition: examples, alterequity

Question 2

Key elements of VC funds

Answer 2

Asset exposure, size, geography, investment life, fees (management fee, carried interest, performance fees, preferred return, IRR–> J-curve), operating budget, portfolio composition, fund cashflow, deal instrument
IMPACT THESIS

Question 3

Link impact to remuneration

Answer 3

Step:
1) Impact metrics
2) Target goals
3) Impact multiple
–> Carried interest is linked to impact performance
–> lock-step model

Question 4

Key activities of VC fund

Answer 4

1) Scouting: where to invest, databases, network
2) Screening: market, product, competition, risk, regulation, long-term strategy, team, impact
3) Portfolio management: improve outcomes through different areas
Problem: founders unsatisfied
How: non-financial support