Week 23: Sourcing, Screening, Valuing and Pitching

Stanford GSB Sloan Study Notes, Week 3 (23), Winter quarter

A large group of Sloan Fellows honoured Martin Luther King Jr on his day by driving up to Lake Tahoe. It was great to find out that snowboarding is like riding a bike – fun even despite of the ~7 year break I had.

The classes on free Mondays are not cancelled at Stanford, just moved to normally “open” Wednesdays. As a result, the past four working days were just insanely busy at school, but I fortunately still managed to make it to a visit to Dropbox HQ and attend a demo days preview at 500 Startups.

Covered in this issue:

  • Nuances of valuing bonds and stocks
  • Venture capital pipeline sourcing and screening
  • Avoiding the pitfalls of pattern recognition in picking VC investments
  • Managing a venture portfolio through economic crisis
  • Pitching tips
  • Creating a consumer brand of tech components and using social media
  • Eric Schmidt was back in his co-teaching class + many guests from Illuminate Ventures, Highland Capital, Accel, Intel, Klout, Gilt, Edelman

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The Intersection Event 2013

Entrepreneurship panel @ The Intersection

Spent an inspiring day at The Intersection Event at Googleplex. Full agenda is here and my notes from the sessions below.

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Week 22: IRR, Fishbones, Term Sheets & Angels

Stanford GSB Sloan Study Notes, Week 2 (22), Winter quarter

Fishbone

I think we’re getting back in the rhythm here. Continuous flow of external guest speakers and occasional valuation models to be built are bringing more variety to just swallowing hundreds of pages of cases. I did drop my across-the-street strategy class to get back to 19 units and thanks to that even made it to a few BBLs and a GSB High Tech Club company visit to Box. There is a long weekend coming up. Life is good.

Covered in this issue:

  • Finance: NPV and IRR, including pitfalls
  • Entrepreneurial finance: unit economics in business models and real options
  • Angel & VC finance (and a E-Club BBL): life of an angel investor
  • Negotiating Term Sheets, especially on valuation
  • Marketing and Mastery of Communications: more stories, including analysing viral videos & TED talks
  • Guests: Sand Hill Angels, Tory Burch, Pattie Sellers, James Buckhouse, Gil Penchina, Jeff Erickson

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Week 21: Finance, Ventures, Stories and Space

Stanford GSB Sloan Study Notes, Week 1 (21), Winter quarter

The pace of the new year has been just mindblowing, and not just compared to the Christmas break down time but to almost any of the school weeks from previous quarters. I guess this is what happens when you can almost fully customize your class schedule. And you want to get out of GSB to “across the street” schools for a bit. And you get accepted to this year’s LOWKeynotes speaker series, with dozens of hours scheduled for prep-work and coaching before the big stage. And…

I’m saying “almost in control,” because I have had close to no time to spend with family, sleep over 6 hours or socialize these last five days. And I do intend to do those things this quarter too. Exhausted, happy, but realizing this kickoff pace will not be quite sustainable as is. Let’s see what next week brings with its reading volume and booting up several project groups.

Covered in this issue:

  • Finance basics: free cash flow, annuities, perpetuities & NPV calculations
  • Business planning: financial business modelling, life time value of customers, Dropbox freemium example
  • Venture Capital: industry history and sizing, how VCs think, how they move money and get paid
  • Marketing: stories, stories, stories – creating and delivering them (videos)
  • Strategy: Grabber-Holder model explaining disruptive tech innovation via ultimate nothingness from Taosim and Yin-Yang cycle
  • Space entrepreneurship: an inspiring event on synthetic life with the Student Space Flight club
  • Guest speakers throughout the week: Vinod KhoslaNancy DuarteCraig Hanson and John Cumbers

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Toolkit for Evaluating a New Venture

Several entrepreneurship-related classes at Stanford refer to a simple conceptual framework developed by Professor William A. Sahlman of Harvard for planning and evaluating new ventures. In short he proposed looking at People, Opportunity, Context and Deal of a venture and analysing how they Fit with each other in this particular combination at hand. You can read all about the model from his article, Thoughts on Business Plans (on Google Books) which in turn comes from an essay collection Sahlman edited in the 90s.

What inspired me in this material was a systematic use of simple, but carefully targeted questions. I decided to extract a condensed reference of them below – still mostly Sahlman with minor revisions, but I’ve added a few more, and would be happy to keep the list living if anyone proposes more useful questions from their arsenal in comments.

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Winter Quarter Courses

As the Sloan year has passed the equator, I’ve signed up for the following classes kicking off next week. It is going to be quite intense, 22 units in total and Mondays going from 8am to 9pm…

Core classes:

Yes, just two this time, leaving more precious time for electives.

Electives: Read the rest of this entry »


A Little Different Book Review

The most surprisingly resonating fiction book I’ve read in a while inspired a little more experimentally formatted review:
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