Unit 6

• Explain the significance of the structuring of venture capital investments to try to achieve an optimal return
• Review and explain the different financial structuring options – different types of equity, debt and how they are related to, but differ from, mezzanine finance
• Explain how different instruments can be used to protect the value of a venture capital investment
• Explain why not only structuring, but also restructuring may be required and its potential as an opportunity for venture capital investors
• Review the causes of company distress and their relevance to restructuring
• Explain financial restructuring, the tools that may be applied and the relevance and potential impact on debt and equity holders, and management
• Examine the place debt of financing in venture capital decisions
• Examine the types of debt financing in that may be used to support venture capital decisions

• Liquidation of the Company
• Control of the Company
• Liquidation Rights Management Participation and Control
• Exit Rights

• Sources of finance
• Share capital – equity
• Ordinary shares
• Preference shares
• SAFE (simple agreement for future equity)
• Convertibles and convertible (preferred) shares
• Redeemable (preferred) shares
• Pariticipating convertible (preferred) shares
• Deferred ordinary shares
• Non-voting shares
• Management shares
• Structuring for exit

• Challenges of debt financing for start up companies
• Venture debt
• When to use venture debt
• Advantages and disadvantages to use venture debt
• Combination of debt and equity to minimise dilution
• Key questions to ask before raising venture debt

Supported by a virtual live session