Info Session October 24 2017 and October 31 2017 Welcome and Intros Scott Meadow Chicago Booth professor and VCIC Faculty Advisor Greg Johnston EVC CoChair and VCIC Organizer Cerise Miller ID: 704494
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Venture Capital Investment Competition (VCIC)
Info Session | October 24, 2017 and October 31, 2017Slide2
Welcome and Intros
Scott Meadow
Chicago Booth professor and VCIC Faculty AdvisorGreg Johnston
EVC Co-Chair and VCIC Organizer
Cerise Miller
Senior Program Manager, Polsky Center, and VCIC OrganizerJoshua Elder MBA ’18, team-member in 2016-17 VCIC
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What is the VCIC?
Day-long investment competitionStudent teams role-play as venture capital firms
Real-world entrepreneurs currently seeking funding present their businesses to student teamsBusinesses 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 closest
thing to real VC action, so it’s the best indicator of
VC potential for MBAs.”Slide5
VCIC Overview of Competition
Teams receive entrepreneur materials, begin due diligence Judge and Team Orientations
Entrepreneur Pitches – 10 minsQ&A Rotations – 15 mins with each entrepreneurStudent Teams Draft Term Sheets – 1 hr, 15 mins Partner Meetings – 15 mins each
Round 1
Voting
Top 2 Teams Negotiate – 10 minsAwards Ceremony and Reception5Slide6
Regionals and Global Finals
The VCIC is a global competition Winner of the Chicago Booth VCIC advances to regionalsRegional competition takes place in Houston, TX on February 9, 2018
1st place $1500; 2nd place $1,000; Entrepreneurs Choice $500Global VCIC takes place at the University of North Carolina, Chapel Hill on April 6-7, 2018 1st place $5,000; 2nd place $2,500NOTE: Winning
team in the
Chicago Booth
VCIC must be available to go to regional and national competitions6Slide7
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 2
nd Place
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Why Hold a Chicago Booth VCIC?
One-of-a-kind competition providing real-world venture capital experienceStudent teams interact with real CEOs from real companies with real business plansStudents 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
Monday, Nov 20, 2017: VCIC application deadline
(application is online)Early December 2017: Teams selected and
notified
Early January 2018
: Mandatory orientation session for selected teamsWed, Jan 17, 2018: Teams receive business materials, begin due diligence Friday, Jan 19, 2018: Chicago Booth VCIC10Slide11
Eligibility
Open to all currently-enrolled MBA students at Chicago BoothIncludes full-time, part-time, and EMBA Booth students
Students from other universities are not eligible to participateFor 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 participateAlternates 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 agreementsDuring 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 competion, 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)Slide14
What Makes a Strong Team?
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Diversity!!Team make-up (first and second years)Backgrounds and areas of expertiseStrong and diverse academic background
Commercializing Innovation
Entrepreneurial Finance courseSlide15
Application
Word application and instructions available on the VCIC website: bit.ly/BoothVCIC
By Monday, November 20, 2017 at noon:Send one electronic copy of the complete application packet to Cerise Miller at cerise.miller@chicagobooth.edu
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 (preference given to second year students, or E/W students with over 10 classes completed)
Must have 5 team members committed forOrientation: Early January, 2018
Booth Competition: Jan 1
9, 2018
all dayRegional Competition in Houston, TX : February 9, 2018Global Finals in Chapel Hill, NC: April 6-7, 2018Submit resumesPitch your team: 5 slides or less (not including cover)16Slide17
Application – Fund Intro (Optional)
NameMission
Focus, theme, thesesSizeVintageLocationBite sizeMiscellaneous 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, VCImportant abilities not covered on resume (you’ll submit your resumes separately)
Why are you doing this?18Slide19
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?19Slide20
Application – Representative Deal
1-2 dealsPitch a real company you would pursueRepresents what is attractive to you
Can find on Techcrunch, Angelist, personal networkWhy 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:Greg Johnston, EVC co-chair, gjohnston@chicagobooth.eduCerise Miller, Polsky
Center,
cerise.miller@chicagobooth.edu
VCIC faculty sponsor:
Professor Scott Meadow
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