1. Venture Capital Investment Competition (VCIC)
Info Session | October 24, 2017 and October 31, 2017

2. Welcome and Intros Scott Meadow Greg Johnston Cerise Miller
Chicago Booth professor and VCIC Faculty Advisor
Greg Johnston
EVC Co-Chair and VCIC Organizer
Cerise Miller
Senior Program Manager, Polsky Center, and VCIC Organizer
Joshua Elder
MBA ’18, team-member in VCIC

3. What is the VCIC? Day-long investment competition
Student teams role-play as venture capital firms
Real-world entrepreneurs currently seeking funding present their businesses to student teams
Businesses tend to be early-stage opportunities representing various industries

4. Benefits of Competing
“VCIC was a capstone to the entrepreneurship classes at Booth. We leaned on courses like CI, EFPE, and NVS. Since we looked at real companies and negotiated with actual entrepreneurs, it added practical, human experience to my education.”
“One of the best learning experiences at Booth for how to actually be a venture capitalist.”
“It’s hard to judge who will be good at venture investing from academics, but VCIC is the closest thing to real VC action, so it’s the best indicator of VC potential for MBAs.”

5. VCIC Overview of Competition
Teams receive entrepreneur materials, begin due diligence
Judge and Team Orientations
Entrepreneur Pitches – 10 mins
Q&A Rotations – 15 mins with each entrepreneur
Student Teams Draft Term Sheets – 1 hr, 15 mins
Partner Meetings – 15 mins each
Round 1 Voting
Top 2 Teams Negotiate – 10 mins
Awards Ceremony and Reception

6. Regionals and Global Finals
The VCIC is a global competition
Winner of the Chicago Booth VCIC advances to regionals
Regional competition takes place in Houston, TX on February 9, 2018
1st place $1500; 2nd place $1,000; Entrepreneurs Choice $500
Global VCIC takes place at the University of North Carolina, Chapel Hill on April 6-7, 2018
1st place $5,000; 2nd place $2,500
NOTE: Winning team in the Chicago Booth VCIC must be available to go to regional and national competitions

7. In 2016, TWO Booth Teams Win Regionals; Take 2nd and 3rd Place in Global VCIC

8. In 2017, Booth Team Competed at Regionals and Took 2nd Place

9. Why Hold a Chicago Booth VCIC?
One-of-a-kind competition providing real-world venture capital experience
Student teams interact with real CEOs from real companies with real business plans
Students work with venture capital investors and practice making investment decisions
Supports Booth’s leading position in entrepreneurship and venture capital
Determines which team will represent Booth at the regional and national competitions

10. Internal Competition Timeline
Monday, Nov 20, 2017: VCIC application deadline (application is online)
Early December 2017: Teams selected and notified
Early January 2018: Mandatory orientation session for selected teams
Wed, Jan 17, 2018: Teams receive business materials, begin due diligence
Friday, Jan 19, 2018: Chicago Booth VCIC

11. Eligibility
Open to all currently-enrolled MBA students at Chicago Booth
Includes full-time, part-time, and EMBA Booth students
Students from other universities are not eligible to participate
For Chicago Booth's VCIC, teams must have five core members
Teams may also have up to two alternates, who would only compete in the Booth VCIC if another team member is unable to participate
Alternates can assist with preparation and term sheet development. They cannot interact with judges and entrepreneurs
For regionals and nationals, teams must have exactly five members. Teams may bring a 6th student to regionals or global finals to act as an observer.

12. Competition Rules All participants must sign non-disclosure agreements
During the competition, teams are allowed to use any available internet resource or database, whether free or by subscription, as well as any books and other printed materials
After 9am on the day of competion, teams are not allowed to contact any individuals for help (i.e. secondary research is ok; primary is not)
Upon receiving business plans, students must notify the organizers of any familiarity with participating businesses
Students can compete in the regional VCIC only once
Teams may substitute core team members with alternates at any time before the competition begins. However, no substitutes may be made during the on-campus, regional, or global events.

13. Negotiations Top 2 Teams Only
Judging Criteria
Due Diligence (20 pts)
Term Sheet (20 pts)
Partner Meeting (20 pts)
Learned what they needed to know? Covered key questions? Dug into key issues?
Demonstrated deep understanding of the business opportunity?
Lead/controlled the meeting?
Established appropriate rapport and demonstrated value as a VC firm?
Reasons to invest
Reasons not to invest
Overall decision
Valuation, Invest. Size, Syndicate, Fund Fit, Option Pool, etc.
Dividends, Board Structure,
Liquidation Preference, Anti-dilution, Dates and Other Terms
Demonstrated deep VC knowledge, terms, exit strategy, return potential, fund fit, etc.
Adequately explained deal
Handled questions/coaching
Confident and convincing
All members contributed
Negotiations Top 2 Teams Only
Focused on the key issues
Demonstrated firm's value
Tackled tough issues
Note: teams are not judged on “getting to a deal”
Established positive rapport

14. What Makes a Strong Team?
Diversity!!
Team make-up (first and second years)
Backgrounds and areas of expertise
Strong and diverse academic background
Commercializing Innovation
Entrepreneurial Finance course

15. Application
Word application and instructions available on the VCIC website: bit.ly/BoothVCIC
By Monday, November 20, 2017 at noon:
Send one electronic copy of the complete application packet to Cerise Miller at
Deliver the $50 application fee, to Cerise Miller in the Polsky Center (Harper Center Suite 207)

16. Application Eligibility: Submit resumes
All Booth students eligible (preference given to second year students, or E/W students with over 10 classes completed)
Must have 5 team members committed for
Orientation: Early January, 2018
Booth Competition: Jan 19, 2018 all day
Regional Competition in Houston, TX : February 9, 2018
Global Finals in Chapel Hill, NC: April 6-7, 2018
Submit resumes
Pitch your team: 5 slides or less (not including cover)

17. Application – Fund Intro (Optional)
Name
Mission
Focus, theme, theses
Size
Vintage
Location
Bite size
Miscellaneous if you want to get specific (GP contribution, etc.)

18. Application – Team
Competitive advantage – what do you bring to the table that’ll uniquely help you win?
Track record related to entrepreneurship, VC
Important abilities not covered on resume (you’ll submit your resumes separately)
Why are you doing this?

19. Application – Strategy/Plan
How will you win?
What’s your plan?
What resources will you draw on?
How will you use each member’s strengths?
How will you mitigate weakness or gaps in your team?

20. Application – Representative Deal
1-2 deals
Pitch a real company you would pursue
Represents what is attractive to you
Can find on Techcrunch, Angelist, personal network
Why pursue/invest?
What are you most concerned about?
No in depth modeling, valuation, or term sheets

21. Questions?
Additional information and application forms for the Chicago Booth VCIC: bit.ly/BoothVCIC
Info on the regional and national VCICs:
VCIC coordinators:
Greg Johnston, EVC co-chair,
Cerise Miller, Polsky Center,
VCIC faculty sponsor:
Professor Scott Meadow