Note on Financial Contracting: “Deals”

It describes the problems involved in the drafting and evaluation of financial contracts between users and investors, and between companies and employees. A simple conceptual framework is presented and some critical questions are addressed: 1) How is cash allocated? 2) How is the risk distributed? and 3) What are the incentives for all parties? The …

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Corporate Venture Capital Primer

The introduction to Corporate Venture Capital (CVC) follows the journey of Claudia Fan Munce, who leads CVC for a large hardware and software conglomerate, as she and her team identify and explore opportunities to partner with startups in the healthcare industry. Along the way, students learn about the history of CVC, the relationship between CVCs …

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KTM – Venture Capitalist Exit

KTM is a small motorcycle manufacturer based in Austria. Due to the difficult economic environment, KTM went private in 1999 with the help of venture capital firm BC European Capital (BC). After several years of strong growth, BC tries to liquidate its position and move on. KTM faces the decision to find the best means …

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New Schools Venture Fund

A new approach to philanthropy, led by venture capitalists and the “new wealth.” It was created in the last two years. The same criteria of accountability for results apply that apply to your investment portfolio.

Jadelink and the Luxury Goods Market in China

The experienced entrepreneurial Chief Executive Officer (CEO) of Jadelink International Limited is committed to creating a modern jewelry brand that represents a new perception of Jade. At first, the CEO succeeded in rapidly increasing sales and bringing Jadelink products to Shanghai, the most modern city in China. But the company plans to expand the business …

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Incept LLC and Confluent Surgical (A)

A venture capitalist has to decide whether to invest in a medical technology company that licenses the intellectual property of a private property of intellectual property based on platform technology. Entrepreneurs Amar Sawhney and Fred Khosravi founded Incept LLC to commercialize their multipurpose hydrogel technology. The pair then parted ways with Confluent Surgical to develop …

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AIT Group Plc

An American venture capital firm has just learned that the transaction structure to buy an illiquid British software company is unacceptable to institutional investors. The group has to decide if it wants to go ahead with the deal. That decision depends on whether investors are confident that their due diligence has uncovered any issues that …

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