If the playlist is shown at the bottom of the YouTube screen, just hit the red bottom-left icon.

There are 5 videos comprising the training (YouTube limits the duration of the videos). In total, there is just more than 30 minutes of videos as part of the VCIC training. In addition, we have a VCHub product orientation video separate from these 5 videos.

Watch, enjoy, learn.

In Dragons’ Den: Series 6: Episode 3 – 5 of 6, fast forward to 4:30 for the beginning of the pitch and negotiation.

It is the first time I’ve seen any Dragon or Shark refer to preferred stock type features.  It was a very odd attempt, given that there were other offers at the same valuation without these features.

I’ll include this post in the VCIC section of our site in the hopes that teams prepare by watching some episodes before their events.

1. Reading the business plans
2. Listening to the entrepreneur pitches (15 minutes)
3. Performing Due Diligence (15 minutes)
4. Creating the deliverables (term sheet and executive summary)
5. Performing the negotiation (18 minutes, 7 minutes Q&A with judges afterwards)

#2, #3, and #5 are shown in even tighter time constraints on BBC’s Dragon’s Den TV program. This show (available on BBC America) has Dragons (the VCs) hearing entrepreneur pitches, asking some due diligence questions, and then making decisions to invest or not. Absolutely fantastic for a variety of reasons, but most importantly a great way to get some perspective for VCIC participants.

Manage the entrepreneur’s responses

Your time will quickly run out if the entrepreneur begins a long winded response.  Set expectations at the beginning of the meeting that you may have to interrupt.  Nothing is worse then to have 5 minutes of time elapse before either the entrepreneur finishes their response or someone finally interrupts.  Just remember, be polite.

Prioritize your questions

Each team member that asks questions should have their list of questions prioritized.  There are some questions that are simply more important than others, especially with the change to the negotiation format for the competition.  A few examples:

• “What are your expectations for valuation?”  Other teams may ask, and then the judges know the expected valuation for the entrepreneur.  If you offer a term sheet with a higher pre-money valuation than needed you’re starting off on the wrong foot even before the negotiation.
• “What milestones will this round allow you to reach?”  In an investment into a startup the use of the funds should be to achieve a higher valuation in the least amount of time.  Identifying the key milestones is a must for any entrepreneur, therefore it is a good idea to ask them.
• “How much total capital is needed to achieve an exit?”  Most likely, a single round will not sustain a company until exit.  Hopefully the entrepreneur has based their expected total capital required off of a financial model with meaningful assumptions.
• “What potential exits do you see for the company, and when?”  It is best to understand the expectations of the entrepreneur with regards to exit, especially if they have a few potential acquirers in mind. See comparables.

In the next few weeks a variety of content will be posted on LearnVC.com to support the teams as they come up the steep learning curve for the competition. Stay tuned for more…