M A S T E R T H E S I S P R E S E N T A T I O N
Venture Capital in CleantechA Case Study
Brice MOUREAU
Prof. Olivier WITMEURProf. Florian TÄUBE
Friday 29.08.14
2Brice Moureau — Master Thesis presentation Friday 29.08.14
My master thesis
A unique case study going beyond the traditional master thesis
Unexplored subject
U n i q u e
Real-life situation of a Venture Capital firm
Tested and refined version
G o i n g O n e S t e p F u r t h e r
Two technical notesComprehensive teaching note
WebsiteVideos
Objective: a quality piece of work that is fully ready-to-use
A case study introducing Venture Capital concepts
3Brice Moureau — Master Thesis presentation Friday 29.08.14
Agenda
• Introduction– The cases– Positioning and Interest of the Cases
• Methodology• Technical Notes• Teaching Note• Limitation• Conclusion
Introduction Methodology Technical Note Teaching Note Limitations Conclusion
Introduction
5Brice Moureau — Master Thesis presentation Friday 29.08.14
Introduction
Understanding what the case is about
The Story Questions Answered Positoning & Interest
Divided in two parts:
• Capricorn (A)Raising a VC fund after the Dotcom bubble
• Capricorn (B)Launching a fund in Cleantech
• How does the VC Business Model works?
• Who are the investors and why do they invest?
• What is the lifecycle of a fund?
• How to raise a new VC fund?
• Courses for which it is designed- Entrepreneurial Finance
- Alternative Investment
• VC Business Model: 2 levels- Downward: GP/portfolio
- Upward: GP/LP
• Why develop a new case?
A unique case study covering VC-related topics, focusing on the relationship between GP and LPs
Introduction Methodology Technical Note Teaching Note Limitations Conclusion
Methodology
7Brice Moureau — Master Thesis presentation Friday 29.08.14
Introduction Methodology Technical Note Teaching Note Limitations Conclusion
Methodology
A long and rigorous process leading to the realization of an academic work
Initial Research
Interview & Drafting
Testing & Feedback
FinalVersion
3 topics to familiarize with• Venture Capital• Case Writing• Capricorn Venture Partners
Testing to identify shortcomings• 7 students• Constructive feedback
• Numerical/Visual/Contextual• Teaching Note assessment
Find the fit between story and concepts• One main interview with Jos Peeters• Constantly evolving structure• Many drafts• Until agreement on a final structure
Improve to reach a final version • Refinement of Teaching Note• New information in the Case• Formalization of Technical part• New pedagogical tools
The CapricornCases
Introduction Methodology Technical Note Teaching Note Limitations Conclusion
Technical Part
9Brice Moureau — Master Thesis presentation Friday 29.08.14
Technical Part
Provide the necessary theoretical background to understand the case
Introduction Methodology Technical Note Teaching Note Limitations Conclusion
Two Technical Notes A set of Wrap-up slides
Theoretical knowledge that is necessary to understand
the concepts covered by the case
10Brice Moureau — Master Thesis presentation Friday 29.08.14
Technical Note #1 – The VC Business Model
Gather knowledge on the VC Business Model, fitted to the case needs
• Defines VC as a subset of Private Equity• Four actors
• GPs
• LPs
• Fund
• Portfolio Companies
• Revenue flows between them• To GP: Management Fees and Carried Interest
• To LPs: Hurdle and Capital Gains
Concepts covered
Added value
✓ Concise but comprehensive information
✓ Mixing all point of views
✓ Adapted to target audience
Technical Note
Investors Why invest in VC
VC firms How to behave
Entrepreneurs How to reach VC
Existing literature on VC Business Model
Introduction Methodology Technical Note Teaching Note Limitations Conclusion
11Brice Moureau — Master Thesis presentation Friday 29.08.14
Investment Focus• Fit // team’s skills
• Portfolio Optimization
• Tie GP’s hands
• What makes a good candidate?
Investment Strategy• Risk diversification
• # of portfolio companies
Terms & Conditions• Structure and Powers
• Financial
• Term, exits and new funds
Investment Team• VC = people
• Specialization: people ↔ strategy
• Track records: past performance
• Network
Concepts covered
Technical Note #2 – KSF of a VC Fund
Gather knowledge on the elements that influence the fundraising phase
✓ Presents four main elements to include in the marketing material ✓ Discuss how it influences the ability of a VC fund to raise capital and perform well ✓ Fitted to the case, good overview
Added value
Introduction Methodology Technical Note Teaching Note Limitations Conclusion
12Brice Moureau — Master Thesis presentation Friday 29.08.14
Wrap-up slides
• Summarizing the technical notes• Complementary information on two minor
concepts– Lifecycle of a VC Fund– VC in Cleantech
Another tool to grasp the concepts of the case
Allow to go through the theoretical concepts that are addressed by the case
Wrap-up slides
Technical Notes
+All the relevant theoretical
knowledge that is necessary to teach and understand the case
Introduction Methodology Technical Note Teaching Note Limitations Conclusion
Teaching Note
14Brice Moureau — Master Thesis presentation Friday 29.08.14
Teaching Note
A full sequence of Q&A to make concepts emerge from the discussion
Two discussions to address two main concepts
Introduction Methodology Technical Note Teaching Note Limitations Conclusion
Success of CVF I: first fund of CVP Introduce the VC Business Model
Difficult situation of CVP in 2004 Introduce the Lifecycle of a VC Fund
Information Memorandum of CCF Discuss the KSF of a VC FundVC in Cleantech also introduced
Action question: successful fundraising? Revenue Model
Capricorn (A)
Capricorn (B)
15Brice Moureau — Master Thesis presentation Friday 29.08.14
Teaching Note
A broad range of pedagogical tools to help the instructor in its mission
Board plans
Mind maps Website
Instructions & Timing
Introduction Methodology Technical Note Teaching Note Limitations Conclusion
16Brice Moureau — Master Thesis presentation Friday 29.08.14
Teaching Note
A broad range of pedagogical tools to help the instructor in its mission
Dynamic spreadsheet Videos
Summarize Key Facts of Capricorn (A)
Summarize Key Facts of Capricorn (B)
Unveil epilogue of CVP’s story
3 video interviews of Jos Peeters, the case’s main character.
Illustrates how the fund’s parameter influence LPs’ and GP’s revenues
1. Summarizes2. Personalization 3. More tension
Better teaching experience
Introduction Methodology Technical Note Teaching Note Limitations Conclusion
Limitations
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Limitations
• Confidential issues• Test the final version of the Case
– Teaching Note• New questions• New board plans
– Technical Note• Developed after the test• See if sufficient
– Bias• Written and tested by SBS-EM
• Adapted to target audience– The case can be modified– Revenue model
• Videos– Subtitles and exhaustiveness
Possible improvements and next steps
Introduction Methodology Technical Note Teaching Note Limitations Conclusion
Conclusion
20Brice Moureau — Master Thesis presentation Friday 29.08.14
Conclusion
From the ambition to the deliverable
Introduction Methodology Technical Note Teaching Note Limitations Conclusion
Initial ambition: write a case on Venture Capital that is ready-to-use
A Unique Case Study
Real-life situation
Unique information
Unexplored subject
Summarized in videos
A Supportive Technical Part
Two technical notes
Addressing two major concepts
Wrap-up slides
An Exhaustive Teaching Note
Thorough instructions
Board Plans
Mind maps
Dynamic Spreadsheet
Website
Case Release Agreement and Validation from Capricorn Venture Partners