Demystifying VC Valuation, Term Sheets & Cap Tables
Understand Venture Capital Valuation, Term
Sheets and Cap Tables
How do venture capital (VC) professionals determine the size and ownership stake of their investments? How do they construct term sheets to optimize their chances of generating high investment returns? And how do they construct cap tables to address challenges including option pools, convertible debt and multiple investors?
The 2-hour venture capital valuation course will demystify the analysis that’s done and the jargon that's used in early-stage investing.
"Learn By Doing": this exercise-driven course includes downloadable VC Term Sheet and VC Cap Table Excel exercise files.
What You'll Learn
Part 1: The VC Process and Term Sheet
- The early-stage investing landscape
- A typical VC deal process and timeline
- VC return economics – why they need to hit home runs
- VC Valuation – back-solving into a pre-money / post-money valuation
- Understanding VC term sheets
Part 2: VC Math and Cap Tables
- Cap Table Math: Dilution and price per share after new round
- Calculating Impact of Option Pool
- Calculating Impact of Multiple Investors
- Calculating impact of Convertible Debt
- Constructing a Cap Table
- Flow of Funds and Distribution Waterfall
Warm Up: Option Pool
Taught by Bankers
Our instructors are former investment bankers who give lessons real-world context by connecting it to their experience on the desk.
Used on the Street
This is the same comprehensive course our corporate clients use to prepare their analysts and associates.
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Free Unlimited Access to the WSP Support Center
Receive answers to questions, free downloads, and more from our staff of experienced investment bankers
This course does not assume a prior background in VC term sheets or cap tables. However, this course is taught at a fast pace and those who enroll should have an introductory knowledge of accounting (e.g. interaction of balance sheet, cash flow, and income statement) and proficiency in Excel. Students with no prior background in Accounting should enroll in the Accounting Crash Course. Students with limited experience using Excel should enroll in the Excel Crash Course.
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