venture capital investment competition (vcic) · 2018-10-19 · day-long investment competition...
TRANSCRIPT
Venture Capital Investment Competition (VCIC)Info Session | October 2018
Welcome and Intros• Nora Mansfield
Senior Program Manager, Polsky Center, and VCIC Organizer
• Scott MeadowChicago Booth professor and VCIC Faculty Advisor
• Cerise Miller
Assistant Director, Polsky Center, and VCIC Organizer
• Meha PatelEVC Co-Chair and VCIC Organizer
MBA ’19, alternate team-member in 2017-18 VCIC
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What is the VCIC? Day-long investment competition Student teams role-play as venture capital firms Real-world entrepreneurs currently seeking funding
present their businesses to student teams– Businesses tend to be early-stage opportunities representing
various industries
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Benefits of Competing
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“VCIC was a capstone to the entrepreneurship classes at Booth. We leaned on courses like CI, EFPE, and NVS. Since we looked at real companies and negotiated with actual entrepreneurs, it added practical, human experience to my education.”
“One of the best learning experiences at Booth for how to actually be a venture capitalist.”
“It’s hard to judge who will be good at venture investing from academics, but VCIC is the closestthing to real VC action, so it’s the best indicator of VC potential for MBAs.”
VCIC Overview of Competition Teams receive entrepreneur materials, begin due diligence Judge and Team Orientations Entrepreneur Pitches – 10 mins Q&A Rotations – 15 mins with each entrepreneur Student Teams Draft Term Sheets – 1 hr, 15 mins Partner Meetings – 15 mins each Round 1 Voting Top 2 Teams Negotiate – 10 mins Awards Ceremony and Reception
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Regionals and Global Finals The VCIC is a global competition Winner of the Chicago Booth VCIC advances to regionals Regional competition takes place in Boulder, CO on
February 8, 2019– 1st place $1000
Global VCIC takes place at the University of North Carolina, Chapel Hill on April 12-13, 20191st place $5,000; 2nd place $2,500– NOTE: Winning team in the Chicago Booth VCIC must be
available to go to regional and national competitions
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In 2016, TWO Booth Teams Win Regionals; Take 2nd and 3rd Place in Global VCIC
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In 2017, Booth Team Competed at Regionals and Took 2nd Place
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In 2018, Booth Team Competed at Regionals and Took 1st Place
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Why Hold a Chicago Booth VCIC? One-of-a-kind competition providing real-world venture capital
experience Student teams interact with real CEOs from real companies
with real business plans Students work with venture capital investors and practice
making investment decisions Supports Booth’s leading position in entrepreneurship and
venture capital Determines which team will represent Booth at the regional
and national competitions
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Internal Competition Timeline Wednesday, Nov 21, 2018: VCIC application deadline
(application is online)
Early December 2018: Teams selected and notified
Early January 2019: Mandatory orientation session for selected teams
Wed, Jan 16, 2019: Teams receive business materials, begin due diligence
Friday, Jan 18, 2019: Chicago Booth VCIC
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Eligibility Open to all currently-enrolled MBA students at Chicago Booth
– Includes full-time, part-time, and EMBA Booth students
Students from other universities are not eligible to participate For Chicago Booth's VCIC, teams must have five core members
– Teams may also have up to two alternates, who would only compete in the Booth VCIC if another team member is unable to participate
– Alternates can assist with preparation and term sheet development. They cannot interact with judges and entrepreneurs
For regionals and nationals, teams must have exactly five members. Teams may bring a 6th student to regionals or global finals to act as an observer.
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Competition Rules All participants must sign non-disclosure agreements During the competition, teams are allowed to use any available
internet resource or database, whether free or by subscription, as well as any books and other printed materials
After 9am on the day of competition, teams are not allowed to contact any individuals for help (i.e. secondary research is ok; primary is not)
Upon receiving business plans, students must notify the organizers of any familiarity with participating businesses
Students can compete in the regional VCIC only once Teams may substitute core team members with alternates at any
time before the competition begins. However, no substitutes may be made during the on-campus, regional, or global events.
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Judging Criteria
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• Demonstrated deep VC knowledge, terms, exit strategy, return potential, fund fit, etc.
• Adequately explained deal • Handled questions/coaching • Confident and convincing• All members contributed
• Learned what they needed to know? Covered key questions? Dug into key issues?
• Demonstrated deep understanding of the business opportunity?
• Lead/controlled the meeting? • Established appropriate
rapport and demonstrated value as a VC firm?
Partner Meeting (20 pts)
• Reasons to invest• Reasons not to invest• Overall decision• Valuation, Invest. Size,
Syndicate, Fund Fit, Option Pool, etc.
• Dividends, Board Structure, • Liquidation Preference, Anti-
dilution, Dates and Other Terms
Term Sheet (20 pts)
• Focused on the key issues• Tackled tough issues• Established positive rapport
• Demonstrated firm's value• Note: teams are not judged on
“getting to a deal”Negotiations
Top 2 Teams Only
Due Diligence (20 pts)
What Makes a Strong Team?
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Diversity!!– Team make-up (1Y, 2Y, E/W)– Backgrounds and areas of expertise
Strong and diverse academic background– Commercializing Innovation– Entrepreneurial Finance course
Application Word application and instructions available on the VCIC
website: bit.ly/BoothVCIC
By Wednesday, November 21, 2018 at noon:– Send one electronic copy of the complete application packet to
Cerise Miller at [email protected]– Deliver the $50 application fee, to Cerise Miller in the Polsky
Center (Harper Center Suite 207)
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Application Eligibility:
All Booth students eligible Must have 5 team members committed for
Orientation: Early January, 2019 Booth Competition: Jan 18, 2019 all day Regional Competition in Boulder, CO: February 8, 2019 Global Finals in Chapel Hill, NC: April 12-13, 2019
Submit resumes Pitch your team: 5 slides or less (not including cover)
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Application – Fund Intro (Optional) Name Mission Focus, theme, theses Size Vintage Location Bite size Miscellaneous if you want to get specific (GP
contribution, etc.)
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Application – Team Competitive advantage – what do you bring to the table
that’ll uniquely help you win? Track record related to entrepreneurship, VC Important abilities not covered on resume (you’ll submit
your resumes separately) Why are you doing this?
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Application – Strategy/Plan How will you win? What’s your plan? What resources will you draw on? How will you use each member’s strengths? How will you mitigate weakness or gaps in your team?
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Application – Representative Deal
1-2 deals Pitch a real company you would pursue Represents what is attractive to you Can find on Techcrunch, Angelist, personal network Why pursue/invest? What are you most concerned about? No in depth modeling, valuation, or term sheets
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Questions?• Additional information and application forms for the Chicago Booth VCIC:
bit.ly/BoothVCIC
• Info on the regional and national VCICs: www.vcic.org
• VCIC coordinators:• Nora Mansfield, Polsky Center, [email protected]• Cerise Miller, Polsky Center, [email protected]• Meha Patel, EVC co-chair, [email protected]
• VCIC faculty sponsor:• Professor Scott Meadow
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