Housekeeping and Scope
George Abe
UCLA Research Administration
george.abe@andersonn.ucla.edu
Housekeeping
Review Syllabus
Web site
TAs
Study groups
•
Written cases and final presentation
Required readings
Grading
Auditors, PTE numbers
Feasibility presentations, or critiques
•
No NDAs, in study groups
Final exam is open book
Copyright 2004 G. J. Abe All Rights Reserved
2
Course Takeaways
Language, concepts, behavior, instincts
•
•
Level playing field with the investor
“Sniff test, elevator pitch, reverse merger, cap table,
PCT, pay to play, full ratchet, 83b, non-qual options,
cram down, redemption..”
VCs are not the only or best source of capital
•
•
They are sometimes indispensable
Consider alternatives
Entrepreneurship study applies elsewhere
Still want to be an entrepreneur?
If so, let’s work on your idea
Copyright 2004 G. J. Abe All Rights Reserved
3
1
Entrepreneurship Is Useful for Big
Business
Learn to work with limited resources
Learn to partner with small businesses
May have small company clients
Big companies fragment/spin-off
Big companies shrink or downsize
Copyright 2004 G. J. Abe All Rights Reserved
4
Entrepreneurship Options
Inherit
•
Family problems, estate planning, do you really want it?
Spinout
•
Transition issues, financing, valuation, branding, legacy issues
Franchise
•
Control, financing, how to excel?
Acquire
•
Financing, asset or company, acquiring a problem?, valuation
Startup
•
Greatest risk. Greatest leverage. Most control
•
Scope of this class
Copyright 2004 G. J. Abe All Rights Reserved
5
Lifecycle of Entrepreneurship
Companies
Concept
Feasibility
Setting Up
Fundraising
Operations/Growth
More fundraising
Exit (or lifestyle)
Repeat
Scope of this class is Concept thru Fundraising
Copyright 2004 G. J. Abe All Rights Reserved
6
2
Now Let’s Get To Work ….
3