From February 6th through February 9th five members of the Krannert Finance club traversed the great expanse known as the Great Plains to participate in the Mountain Region for the Venture Capital Investment Competition at UC Boulder.
The Venture Capital Investment Competition allows VCs, entrepreneurs, and top MBA students to network and test their skills at conducting condensed due diligence, valuation, and business analysis, as well as practice negotiating skills – all in a very competitive, fun environment. At each event 6 teams of 5 students listen to entrepreneurial pitches and work together to conduct a valuation and term sheet negotiation. Actual Venture Capitalists act as judges and observe student and entrepreneur interactions through question answer sessions and the negotiating process. Finally, the event concludes with a pretty in-depth question and answer session between the VCs and the students.
This year’s team consisted of Kyle Knerr, Tom Zhang, Andrejs Strateicuks, Gary Brizendine II, and Niraj Chitrakar. The competitors this year consisted of students from Rice University, Booth School of Business, Kellogg School of Management, Notre Dame, and University Wisconsin-Madison.
Our competition started on Wednesday at 7PM when we received information about the businesses which we were to consider investing in. We poured over business plans and pitches until about 11PM, and decided to call it a night because of our early start the next day.
Thursday began early for most of us, as we met at 7:00 at Rawls to drive to Chicago to catch an early flight out of O’Hare. We continued our due diligence during the flight, as there was no time to waste! Once we got to our hotel, we quickly grabbed some grub and continued to work our magic, compiling lists of questions and valuations into the late evening.
Friday consisted of a barrage of PowerPoint presentations, question-answer sessions, and group discussions. We had 2 hours to come to an acceptable valuation and term sheet. We turned ours in at almost exactly 1:59:59 – talk about stress!
While we didn’t place in this year’s competition, we all had a lot of fun, and I believe that we have set the foundation to improve our teams for the years to come. I encourage everyone, regardless of their concentration, to contact Finance Club for more information or with any questions they may have.