Venture Capital Initiative

Venture Capital Initiative - Courses - Core Electives

Core Electives

Darden offers a collection of courses designed to help students prepare for their venture capital journeys. During the first year, students engage with the core curriculum and learn the fundamentals of business through rich case study discussions. After completing the core curriculum, students have the opportunity to take core electives, experiential learning courses, and other related courses in venture capital. The Fall Venture Capital Learning Series is open to all students, regardless of where they are in their MBA journey. The Venture Capital Learning series is highly recommended for first-years interested in building their venture capital skillset and knowledge base prior to their summer internship interviews.

Core Elective Courses

  • VENTURE CAPITAL FINANCE

    Faculty

    rus

    		 Rus Abuzov,  Assistant Professor of Business Administration

    Course Description

    The Venture Capital Finance course focuses on the institutional aspects of early-stage investing, more commonly referred to as venture capital, which is important sector within the broader private equity industry. The course is designed to equip students with a comprehensive set of skills that will allow them to analyze situations of high risk and uncertainty from the investor’s perspective.

    The course begins with introductory sessions on how venture capitalists (VCs) operate and make investment decisions. We also discuss institutional details surrounding these decisions by talking about capital flows, limited partners, fund economics and compensation arrangements between general and limited partners. Thereafter, the course focuses primarily on the investment phase of early-stage investments from the earliest seed rounds to later rounds of venture investment through the exit decision.

    Course Objectives

    • Introduce students to how VCs operate and make investment decisions. Explore institutional details surrounding these decisions by focusing on capital flows within the broader private equity industry, fund economics and compensation arrangements between general and limited partners.
    • Unpack how VCs approach evaluation of early-stage companies in a setting with multiple financing rounds.
    • Explore most frequently used securities, provisions of equity financing rounds and convertible notes.
    • Familiarize students with other sources of startup funding such as venture debt instruments and corporate venture capital
    • Assess the choice between different exit routes, primarily between going public and trade sale.

    What Students Say

    kiana

    "The course allowed me to explore different perspectives from what fundraising may look like for an entrepreneur to one of a VC partner looking at a potential investment. After taking it, I gained a much better understanding of the ins and outs of the venture capital landscape as well as the various mechanisms one could use to incentivize entrepreneurs and achieve better returns for investors."

    Kiana Feliciano
    MBA Class of 2024

     

    "The course helped me appreciate the multiple levers entrepreneurs and financiers can pull to mitigate the downside and participate in the upside. It wasn't just numbers - we dove into the human and contractual elements that can make or break a deal and propel or sink a venture."

    Carlos Saballos
    MBA Class of 2024

    carlos

     

     

     

    will whitehurst

    "This was a fantastic course that effortlessly blended the quantitative modeling and qualitative strategy of venture capital. I left the course with a clear understanding of two key industry aspects: (i) The various vehicles a private investor can used depending on stage, risk tolerance, etc. (ii) The stakeholder alignment or conflict associated with each vehicle’s incentive structure."

    Will Whitehurst
    MBA Class of 2024
  • VENTURE CAPITAL LEADERSHIP

    Faculty

    les

    Les Alexander, John Glynn Endowed Professor and Professor of Practice in Business Administration

    Course Description

    The Venture Capital Leadership course explores the role venture capital plays in the private capital ecosystem through case discussions and in class conversations with industry leaders. The course offers students the opportunity to examine current topics impacting the venture capital industry, learn about the various providers of start-up, seed, early, and late-stage capital, explore how funds are raised and why limited partners allocate to this asset class, and evaluate the similarities and differences between venture capital and corporate venture capital. We will also discuss how venture capitalists select investments, engage with their portfolio companies in an attempt to add value, and pursue a liquidity event to return invested capital and profits to their limited partners. Throughout the course we will consider themes such as how private capital investments are different from investing in the public capital markets, how to be selective when evaluating investment opportunities, the role of failure in venture capital, and how venture capital impacts the economy.

    Course Objectives

    • Explore the unique nature of private capital market investments in general and venture capital investments in particular
    • Develop an appreciation for the many different providers of capital to start-up, early, and late-stage businesses
    • Gain insight into the impact venture capital makes on the economy and society as well as discuss ways that venture capital could improve in these areas
    • Practice the evaluation of investment opportunities and selection of attractive investments
    • Understand the similarities and differences between venture capital and corporate venture capital
    • Learn ways venture capitalists can engage with and add value to portfolio companies
    • Understand the relationship between the fund managers and their limited partners as well as the reasons limited partners invest in venture capital funds and other alternative assets
  • PRIVATE EQUITY

    Faculty

    elena

    		 Elena Loutskina, Professor of Business Administration, Peter M. Grant II Bicentennial Foundation Chair in Business Administration and Academic Director of Richard A. Mayo Center for Asset Management

    Course Description

    The class covers a wide range of financial situations that arise during private equity transactions. The core objective of the class is to understand the financial engineering behind all aspects of the private (PE) equity investors’ dealmaking. We will focus on the financial decisions of three PE industry stakeholders: limited partners (LPs), private equity funds managed by general partners (GPs), and PE firms owned by GPs. We will examine the investment decisions, valuation, and structure of transactions. The focus of this class is on analytical tools and methods. We will evaluate the issues pertaining to company valuations in different settings and measurement of LPs return from investment in private equity funds. My goal in this class is to broaden your view on financial deal making and foster an appreciation of flexibility of financial contracting tools.

    Course Objectives

    • Explore the structure and the financial performance of the PE industry.
    • Develop a framework to evaluate deals in the PE industry.
    • Understand the incentive dynamic between PE industry stakeholder: limited partners, general partners, and portfolio companies.
    • Evaluate how financial contracting can mitigate the conflicts of interest between different stakeholders.
    • Build a toolkit of quantitative methods to evaluate fund and company performance.
    • Foster appreciation of the financial engineering at different stakeholders.
    • Understand the role of the PE industry in the U.S. and global economy.

    What Students Say

    kathleen

    "Darden’s PE course is legendary, and an absolute must take in our second year! The course highlights the intricacies of private markets and does an amazing job to introduce students to the core concepts and technical skills of PE finance. It was easily one of my favorite courses during my Darden experience and helped to grow my passion for this space."

    Kathleen Altice
    MBA Class of 2024

     

    "This course gave me a strong foundation for a career in private markets. The cases covered helped me understand a variety of situations that arise in private equity transactions, both conceptually and technically. I especially enjoyed the cases that led to discussions about the GP-LP relationship dynamics, the value of the platform, and the fund of funds model."

    Christie Carpenter
    MBA Class of 2024

    christie

     

    aanshi

    "The PE course was an eye-opening experience that exceeded all my expectations. Before taking this class, I had heard PE terms tossed around in financial discussions and seen them mentioned in articles like the Wall Street Journal. However, I never truly grasped the nuances of GP and LP roles or what went on behind the scenes. The professor and the course material provided invaluable insights, demystifying these concepts and giving me a comprehensive understanding of the dynamics between LP and GP relationships."

    Aanshi Jain
    MBA Class of 2024

     

    "The PE course was a great theoretical and technical introduction to the PE space. It is a “must take” for anyone interested in that ecosystem. The professor held us to a high standard of excellence, which ultimately brings out the best in students; my classmates and I were engaged, well-prepared, and eager to answer the call. Getting regular “reps” on financial modeling was also a huge value-add."

    Reid Spagna
    MBA Class of 2024

    reid

     

    joe

    "I can say with utmost confidence that this is one of the most insightful courses I took while at Darden. Prior to Darden, I had limited exposure to the intricacies of the private markets. Not only did the course deepen my passion for private investing, but it also bolstered my confidence in navigating the complexities of various strategies, funding requirements, contractual terms, and incentives commonly associated with private market investments."

    Joe Vance
    MBA Class of 2024