MasterThesis Presentation 29.08.14 - Raising a VC fund in Cleantech case study

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MASTER THESIS PRESENTATION nture Capital in Cleantech Case Study Brice MOUREAU Prof. Olivier WITMEUR Prof. Florian TÄUBE Friday 29.08.14

Transcript of MasterThesis Presentation 29.08.14 - Raising a VC fund in Cleantech case study

Page 1: MasterThesis Presentation 29.08.14 - Raising a VC fund in Cleantech case study

M A S T E R T H E S I S P R E S E N T A T I O N

Venture Capital in CleantechA Case Study

Brice MOUREAU

Prof. Olivier WITMEURProf. Florian TÄUBE

Friday 29.08.14

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My master thesis

A unique case study going beyond the traditional master thesis

Unexplored subject

U n i q u e

Real-life situation of a Venture Capital firm

Tested and refined version

G o i n g O n e S t e p F u r t h e r

Two technical notesComprehensive teaching note

WebsiteVideos

Objective: a quality piece of work that is fully ready-to-use

A case study introducing Venture Capital concepts

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Agenda

• Introduction– The cases– Positioning and Interest of the Cases

• Methodology• Technical Notes• Teaching Note• Limitation• Conclusion

Introduction Methodology Technical Note Teaching Note Limitations Conclusion

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Introduction

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Introduction

Understanding what the case is about

The Story Questions Answered Positoning & Interest

Divided in two parts:

• Capricorn (A)Raising a VC fund after the Dotcom bubble

• Capricorn (B)Launching a fund in Cleantech

• How does the VC Business Model works?

• Who are the investors and why do they invest?

• What is the lifecycle of a fund?

• How to raise a new VC fund?

• Courses for which it is designed- Entrepreneurial Finance

- Alternative Investment

• VC Business Model: 2 levels- Downward: GP/portfolio

- Upward: GP/LP

• Why develop a new case?

A unique case study covering VC-related topics, focusing on the relationship between GP and LPs

Introduction Methodology Technical Note Teaching Note Limitations Conclusion

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Methodology

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Introduction Methodology Technical Note Teaching Note Limitations Conclusion

Methodology

A long and rigorous process leading to the realization of an academic work

Initial Research

Interview & Drafting

Testing & Feedback

FinalVersion

3 topics to familiarize with• Venture Capital• Case Writing• Capricorn Venture Partners

Testing to identify shortcomings• 7 students• Constructive feedback

• Numerical/Visual/Contextual• Teaching Note assessment

Find the fit between story and concepts• One main interview with Jos Peeters• Constantly evolving structure• Many drafts• Until agreement on a final structure

Improve to reach a final version • Refinement of Teaching Note• New information in the Case• Formalization of Technical part• New pedagogical tools

The CapricornCases

Introduction Methodology Technical Note Teaching Note Limitations Conclusion

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Technical Part

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Technical Part

Provide the necessary theoretical background to understand the case

Introduction Methodology Technical Note Teaching Note Limitations Conclusion

Two Technical Notes A set of Wrap-up slides

Theoretical knowledge that is necessary to understand

the concepts covered by the case

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Technical Note #1 – The VC Business Model

Gather knowledge on the VC Business Model, fitted to the case needs

• Defines VC as a subset of Private Equity• Four actors

• GPs

• LPs

• Fund

• Portfolio Companies

• Revenue flows between them• To GP: Management Fees and Carried Interest

• To LPs: Hurdle and Capital Gains

Concepts covered

Added value

✓ Concise but comprehensive information

✓ Mixing all point of views

✓ Adapted to target audience

Technical Note

Investors Why invest in VC

VC firms How to behave

Entrepreneurs How to reach VC

Existing literature on VC Business Model

Introduction Methodology Technical Note Teaching Note Limitations Conclusion

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Investment Focus• Fit // team’s skills

• Portfolio Optimization

• Tie GP’s hands

• What makes a good candidate?

Investment Strategy• Risk diversification

• # of portfolio companies

Terms & Conditions• Structure and Powers

• Financial

• Term, exits and new funds

Investment Team• VC = people

• Specialization: people ↔ strategy

• Track records: past performance

• Network

Concepts covered

Technical Note #2 – KSF of a VC Fund

Gather knowledge on the elements that influence the fundraising phase

✓ Presents four main elements to include in the marketing material ✓ Discuss how it influences the ability of a VC fund to raise capital and perform well ✓ Fitted to the case, good overview

Added value

Introduction Methodology Technical Note Teaching Note Limitations Conclusion

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Wrap-up slides

• Summarizing the technical notes• Complementary information on two minor

concepts– Lifecycle of a VC Fund– VC in Cleantech

Another tool to grasp the concepts of the case

Allow to go through the theoretical concepts that are addressed by the case

Wrap-up slides

Technical Notes

+All the relevant theoretical

knowledge that is necessary to teach and understand the case

Introduction Methodology Technical Note Teaching Note Limitations Conclusion

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Teaching Note

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Teaching Note

A full sequence of Q&A to make concepts emerge from the discussion

Two discussions to address two main concepts

Introduction Methodology Technical Note Teaching Note Limitations Conclusion

Success of CVF I: first fund of CVP Introduce the VC Business Model

Difficult situation of CVP in 2004 Introduce the Lifecycle of a VC Fund

Information Memorandum of CCF Discuss the KSF of a VC FundVC in Cleantech also introduced

Action question: successful fundraising? Revenue Model

Capricorn (A)

Capricorn (B)

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Teaching Note

A broad range of pedagogical tools to help the instructor in its mission

Board plans

Mind maps Website

Instructions & Timing

Introduction Methodology Technical Note Teaching Note Limitations Conclusion

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Teaching Note

A broad range of pedagogical tools to help the instructor in its mission

Dynamic spreadsheet Videos

Summarize Key Facts of Capricorn (A)

Summarize Key Facts of Capricorn (B)

Unveil epilogue of CVP’s story

3 video interviews of Jos Peeters, the case’s main character.

Illustrates how the fund’s parameter influence LPs’ and GP’s revenues

1. Summarizes2. Personalization 3. More tension

Better teaching experience

Introduction Methodology Technical Note Teaching Note Limitations Conclusion

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Limitations

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Limitations

• Confidential issues• Test the final version of the Case

– Teaching Note• New questions• New board plans

– Technical Note• Developed after the test• See if sufficient

– Bias• Written and tested by SBS-EM

• Adapted to target audience– The case can be modified– Revenue model

• Videos– Subtitles and exhaustiveness

Possible improvements and next steps

Introduction Methodology Technical Note Teaching Note Limitations Conclusion

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Conclusion

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Conclusion

From the ambition to the deliverable

Introduction Methodology Technical Note Teaching Note Limitations Conclusion

Initial ambition: write a case on Venture Capital that is ready-to-use

A Unique Case Study

Real-life situation

Unique information

Unexplored subject

Summarized in videos

A Supportive Technical Part

Two technical notes

Addressing two major concepts

Wrap-up slides

An Exhaustive Teaching Note

Thorough instructions

Board Plans

Mind maps

Dynamic Spreadsheet

Website

Case Release Agreement and Validation from Capricorn Venture Partners