preview

Afin310 Lecture 5 Essay

Better Essays

FIN310 - Venture Capital - Investing in early stage growth companies – Lecture 1
Brendon Blacker
Monday 24 March

Introduction to your guest lecturer

Brendon Blacker
Vice President
Macquarie Capital Sydney

STRICTLY CONFIDENTIAL

2

Agenda
Lecture 1 – Monday 24 March 2014
1. Introduction to Macquarie Capital

Lecture 2 – Monday 31 March 2014
— Review questions
— Quick recap

2. Introduction to venture capital
— What is venture capital? How does it work?

3. Investing in early-stage growth companies (continued)

— Who are the main players globally and in Australia?

— What do venture capitalists look for in an investment?

— And… the difference between venture capital and private equity

— How do they make investment decisions?

3. …show more content…

2.

Fund Raising


Typically takes six months to a year to obtain capital commitments



Capital can come from state and corporate pension funds, public and private endowments and personal investors

Investment Sourcing


Can take between three and six years and is comprised of:
— Sourcing investments: identify and source opportunities
— Due diligence: extensive research and analysis is done on the company and in the market it operates in
— Initial investment
— Often, venture capital firms preserve an appropriate percentage of their funds to participate in follow-on fund raisings for their portfolio companies

3.

4.

Portfolio Management


The aim of this stage is to help the portfolio companies grow



Venture capital firms typically appoint representatives on the company’s board and offers strategic advice to the management team

Closing


Often funds are 10 year closed-end funds in which it is expected that all investments will be exited and the fund wound up in
10 years



Exit of investments by way of IPO, sale to a third party (eg trade sale) or wind-up

STRICTLY CONFIDENTIAL

11

How do VC’s add value?
 Network: providing a network of potential clients and partners to help build relationships
 Recruitment: assisting and identifying, interviewing and assessing talent for the business and for the Board
 Financing: assist in raising additional equity, debt or lines of credit
 Domain knowledge: specialist knowledge of industries
and

Get Access