Streamlined university venture capital workflow covering startup identification, due diligence, investment, monitoring, and exit strategy for optimal growth and success.
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Identify possible startup opportunities for investment
2
Make initial startup outreach
3
Evaluate startup business model
4
Perform due diligence
5
Evaluate startup's market potential
6
Evaluate the team behind the startup
7
Conduct financial analysis
8
Approval: Financial Analysis
9
Prepare investment thesis
10
Approval: Investment Thesis
11
Evaluate legal and regulatory aspects
12
Create deal structure
13
Negotiate investment terms
14
Draft investment agreement
15
Approval: Investment Agreement
16
Finalize and sign investment agreement
17
Monitor and support startup post-investment
18
Assess startup's growth and performance
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Plan exit strategy
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Approval: Exit Strategy
Identify possible startup opportunities for investment
In this task, you will research and identify potential startup opportunities that could be viable investments for University Venture Capital University Incubation. Your goal is to find startups with innovative and promising ideas that align with our investment criteria. Consider industries, trends, and emerging technologies that show potential for growth. Key Results: - A list of potential startup opportunities - Understanding of the startups' industry, market, and potential - Consideration of the startups' fit with our investment criteria Know-How: - Internet research skills - Familiarity with investment criteria Challenges: - Identifying startups with a strong market opportunity - Distinguishing between viable and non-viable startups Resources/Tools: - Internet access - Market research platforms - Startup databases - Industry reports and publications
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Healthcare
2
Technology
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Finance
4
Education
5
Social Media
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Startup A
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Startup B
3
Startup C
4
Startup D
5
Startup E
Make initial startup outreach
Reach out to the selected startups to express our interest in their business and start a conversation. Introduce yourself, explain our investment focus and criteria, and request a meeting or call to discuss their business further. Remember to be professional and engaging to make a positive impression. Key Results: - Initial contact made with selected startups - Understanding of startup's interest and availability - Meeting or call scheduled with interested startups Know-How: - Professional communication skills - Familiarity with our investment focus and criteria Challenges: - Making a compelling introduction - Getting a response from startups Resources/Tools: - Email template - LinkedIn or other professional network - Phone or email - Scheduling tools
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Startup A
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Startup B
3
Startup C
4
Startup D
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Startup E
Evaluate startup business model
In this task, you will analyze the startup's business model to assess its viability and potential for success. Evaluate the revenue streams, value proposition, target market, cost structure, and competitive advantage. Identify any weaknesses or areas for improvement in the business model. Key Results: - Evaluation of startup's business model - Understanding of revenue streams and cost structure - Identification of strengths and weaknesses Know-How: - Business analysis - Familiarity with different types of business models Challenges: - Assessing the scalability of the business model - Identifying potential risks and challenges Resources/Tools: - Business model canvas - Industry benchmarks and best practices - Financial reports - Competitor analysis
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Price
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Quality
3
Convenience
4
Innovation
5
Social impact
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B2B
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B2C
3
Education
4
Healthcare
5
Technology
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Strength A
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Strength B
3
Strength C
4
Weakness A
5
Weakness B
Perform due diligence
In this task, you will conduct due diligence on the selected startups to gather and evaluate information about their business operations, financial health, legal compliance, and any potential risks. Thorough due diligence is crucial to make informed investment decisions. Key Results: - Due diligence report on each startup - Assessment of business operations and financial health - Identification of any potential risks or concerns Know-How: - Research and analysis skills - Understanding of legal and financial requirements Challenges: - Gathering accurate and reliable information - Assessing the credibility and integrity of sources Resources/Tools: - Financial statements - Legal documents - Background checks - Interviews with key stakeholders
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Risk A
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Risk B
3
Risk C
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Concern A
5
Concern B
Evaluate startup's market potential
Assess the market potential of the startup's product or service. Analyze the size, growth rate, and dynamics of the target market. Evaluate the competition, market trends, and customer demand. Determine if there is a clear market need for the startup's offering. Key Results: - Evaluation of market potential and size - Analysis of market dynamics and trends - Understanding of customer demand and competition Know-How: - Market research and analysis - Familiarity with target market Challenges: - Assessing market demand and competition accurately - Identifying potential barriers to entry Resources/Tools: - Market research reports - Competitor analysis - Customer surveys or interviews - Industry experts
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B2B
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B2C
3
Education
4
Healthcare
5
Technology
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High startup costs
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Regulatory requirements
3
Brand dominance
4
Technological barriers
5
Customer switching costs
Evaluate the team behind the startup
Assess the capabilities and experience of the startup's founding team. Evaluate their expertise, track record, and ability to execute the business plan. Consider the team's synergy, diversity, and their ability to attract and retain talent. Determine if the team has the necessary skills and resources to drive the startup towards success. Key Results: - Evaluation of team's capabilities and experience - Assessment of their ability to execute the business plan - Understanding of team dynamics and composition Know-How: - Team evaluation and assessment - Understanding of startup team roles and dynamics Challenges: - Assessing team members' capabilities objectively - Identifying potential gaps or weaknesses in the team Resources/Tools: - LinkedIn profiles - Resumes or CVs - Interviews with team members - Reference checks
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CEO
2
CTO
3
COO
4
Marketing
5
Finance
1
Strength A
2
Strength B
3
Strength C
4
Weakness A
5
Weakness B
Conduct financial analysis
Analyze the startup's financial data to gain insights into its financial health, performance, and growth potential. Assess factors such as revenue growth, profitability, cash flow, and financial ratios. Identify any financial risks or opportunities that may impact the investment decision. Key Results: - Financial analysis report - Understanding of startup's financial health and performance - Identification of financial risks or opportunities Know-How: - Financial analysis - Familiarity with financial statements and ratios Challenges: - Interpreting financial data accurately - Identifying potential red flags or inconsistencies Resources/Tools: - Financial statements - Financial ratios - Industry benchmarks - Cash flow projections
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Risk A
2
Risk B
3
Risk C
Approval: Financial Analysis
Will be submitted for approval:
Conduct financial analysis
Will be submitted
Prepare investment thesis
Create an investment thesis that summarizes the rationale behind the potential investment in the startup. Outline the key factors that make the investment attractive, such as market potential, competitive advantage, and the team's capabilities. Include financial projections and potential risks to provide a comprehensive overview. Key Results: - Investment thesis document - Clear articulation of the investment rationale - Overview of key factors and projections Know-How: - Investment thesis writing - Familiarity with startup investment criteria and requirements Challenges: - Distilling complex information into a concise and compelling document - Balancing optimism with realistic projections Resources/Tools: - Investment thesis template - Financial projections - Market analysis reports - Risk assessment frameworks
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Factor A
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Factor B
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Factor C
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Factor D
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Factor E
Approval: Investment Thesis
Will be submitted for approval:
Prepare investment thesis
Will be submitted
Evaluate legal and regulatory aspects
Assess the legal and regulatory landscape that may impact the startup's operations and growth. Understand the compliance requirements, intellectual property rights, and potential legal risks. Evaluate any licenses, permits, or contracts that the startup may need to operate. Key Results: - Evaluation of legal and regulatory aspects - Assessment of compliance requirements and risks - Understanding of necessary licenses and permits Know-How: - Legal and regulatory analysis - Familiarity with relevant laws and regulations Challenges: - Keeping up with changing regulations - Identifying potential legal risks and implications Resources/Tools: - Legal counsel - Regulatory frameworks - Contracts and agreements - Intellectual property databases
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Risk A
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Risk B
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Risk C
4
Risk D
5
Risk E
Create deal structure
In this task, you will determine the appropriate deal structure for the investment. Consider the investment amount, equity stake, and any additional terms or conditions. Create a framework that balances the startup's needs with our investment objectives. Address any potential negotiation points upfront. Key Results: - Deal structure proposal - Determination of investment amount and equity stake - Outline of additional terms or conditions Know-How: - Deal structuring - Understanding of investment terms and conditions Challenges: - Balancing startup's expectations with investment requirements - Anticipating negotiation points Resources/Tools: - Deal structuring templates - Investment term sheets - Legal counsel - Market benchmarks
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< $100k
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$100k - $500k
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$500k - $1M
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>$1M
Negotiate investment terms
Negotiate the investment terms with the startup's founders or representatives to reach a mutual agreement. Discuss the deal structure, valuation, investor rights, and any other relevant terms. Aim for a fair and sustainable agreement that meets both parties' interests. Key Results: - Negotiated investment terms - Mutual agreement on deal structure and valuation - Documented investor rights and responsibilities Know-How: - Negotiation and communication skills - Understanding of investment terms and legal implications Challenges: - Addressing diverging interests and expectations - Maintaining a positive and constructive negotiation atmosphere Resources/Tools: - Legal counsel - Sample investment agreements - Negotiation strategies - Market benchmarks
Draft investment agreement
Prepare a comprehensive investment agreement that captures the negotiated terms, such as the investment amount, equity stake, investor rights, and other relevant provisions. Ensure that the agreement is legally sound and specifies the obligations, responsibilities, and protections for both parties. Key Results: - Drafted investment agreement - Detailed documentation of negotiated terms - Clear definition of rights and obligations Know-How: - Contract drafting and legal writing - Familiarity with the terms and provisions of investment agreements Challenges: - Conveying complex legal concepts in clear language - Coordinating with legal counsel and stakeholders Resources/Tools: - Legal templates or software - Sample investment agreements - Legal counsel - Compliance checklists
Approval: Investment Agreement
Will be submitted for approval:
Draft investment agreement
Will be submitted
Finalize and sign investment agreement
In this task, you will finalize the investment agreement and obtain the necessary signatures from all parties involved. Review the agreement for accuracy and completeness. Ensure that all parties understand and agree to the terms before signing. Execute the agreement in accordance with legal and regulatory requirements. Key Results: - Finalized and signed investment agreement - Confirmation of understanding and acceptance of terms - Compliance with legal and regulatory requirements Know-How: - Contract review and execution - Familiarity with legal and regulatory processes Challenges: - Coordinating with all parties to obtain signatures - Ensuring compliance with legal formalities Resources/Tools: - Legal counsel - Execution checklist - Compliance guidelines - Notary services (if applicable)
Monitor and support startup post-investment
This task involves actively monitoring and supporting the startup after the investment has been made. Regularly communicate with the startup's founders or representatives to understand their progress, challenges, and needs. Provide guidance, resources, and connections to help them navigate the entrepreneurial journey. Key Results: - Ongoing communication with the startup - Understanding of startup's progress and challenges - Provision of guidance and support Know-How: - Entrepreneurial support and mentorship - Effective communication and relationship-building Challenges: - Balancing support with the startup's autonomy - Addressing conflicts of interest or differences in vision Resources/Tools: - Communication channels (email, phone, meetings) - Startup support resources - Professional network - Mentorship frameworks
Assess startup's growth and performance
Assess the startup's growth, performance, and achievement of key milestones. Analyze metrics such as revenue, customer acquisition, user engagement, and market share. Compare the startup's performance against industry benchmarks and projections. Identify strengths, areas for improvement, and potential pivot opportunities. Key Results: - Assessment of startup's growth and performance - Comparison against industry benchmarks and projections - Identification of strengths and areas for improvement Know-How: - Performance evaluation and analysis - Familiarity with startup metrics and benchmarks Challenges: - Collecting accurate and reliable performance data - Interpreting performance data in context Resources/Tools: - Performance metrics dashboard - Industry benchmarks - Financial reports - User feedback and reviews
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Strength A
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Strength B
3
Strength C
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Improvement A
5
Improvement B
Plan exit strategy
Develop an exit strategy for the investment to realize returns and mitigate risks. Consider options such as acquisition, public offering, or secondary market transactions. Analyze market conditions, investor objectives, and the startup's growth trajectory to determine the optimal exit timing and method. Key Results: - Exit strategy proposal - Consideration of exit timing and method - Mitigation of investment risks Know-How: - Exit planning and analysis - Understanding of market conditions and investor objectives Challenges: - Balancing long-term growth potential with exit opportunities - Anticipating market fluctuations and risks Resources/Tools: - Exit planning frameworks - Market research and analysis - Investment committee guidance - Legal and regulatory expertise