Law 794: Financing for Startups

This one-week seminar course explores the ways in which startups are financed, and the implications of that financing on the interests of the founders, employees, investors and partners.   The instructor is a partner in a Silicon Valley based venture capital firm, and previously practiced law in the SF Bay Area for one of the leading law firms serving the emerging company and technology marketplace.  Focus of the course will be primarily on startups that expect to undergo rapid growth, are pursuing perishable market opportunities, and are oriented around technology.  In addition to daily lectures, the course will include guest speakers with relevant industry experience, including entrepreneurs who have founded and funded successful startups, and early-stage investors including angels, seed fund managers and venture capital investors.   The course will explore the venture capital industry, including its history, current status, and possible future.  It will also delve into exit scenarios, including what it means for the stakeholders in a company undergoing an acquisition, or an IPO, and alternative exit opportunities on the emerging secondary private market.

Sequence and Prerequisites:  No prerequisites are necessary, but the instructor will provide enrolled students a list of suggested materials to review before the course begins. This will include articles, books and a handful of online resources (podcasts and videos).

Evaluation: On the last day of the course the students will receive a written assignment that requires the students to apply the course material to a hypothetical fact set, and write a memorandum or paper analyzing financing opportunities presented to a hypothetical startup described in the hypothetical fact set.  Grades will be awarded based on the soundness and completeness of that analysis. The students will have two weeks after the course to complete and turn in their memorandum. Although grades will primarily depend upon the student’s final memorandum, students may gain credit for thoughtful participation in classroom discussion. This course does not have an exam.