NEGOTIATIONS REPLACE TEAM PRESENTATION

Rather than pitching to the VCs, this year teams will sit down one-on-one with the one entrepreneur chosen for investment to work towards a deal for 15 minutes, observed by all the judges and followed by a 10-minute Q&A with VC judges. As in years past, teams still turn in written deliverables: term sheet summary and executive summary. The judges see both. The entrepreneur only sees the term sheet summary -- so it is A STARTING POINT. Teams are not judged on getting to a deal, but on how they handle negotiations. Perhaps the best way to illustrate this is to show the actual judging criteria.

33% of your total score comes from the due diligence sessions.

67% of total score comes from executive summary, term sheet summary, negotiations and Q&A. Here are the judging criteria for that part of the competition:

• Backed the Right Horse for the Right Reasons

  • Reasons to Invest

  • Reasons not to Invest

  • Overall Decision

• Right Terms

  • Valuation

  • Investment Size/Syndication

  • Board Structure

  • Option Pool

  • Liq. Pref., Anti-Dilution, Dividends

  • Dates and other terms           

• Performance During Negotiations

  • Focused on the important issues?

  • Established positive rapport?

  • Demonstrated firm’s value?

  • Made progress toward a deal?          

• How well did the team handle Q&A?

  • Did they demonstrate a mastery of VC skill sets?

• Anything Else? (optional)

  • Worked well together as a team?

  • Other? ______________________

For more assistance, download the VCIC Player Handbook.