Breaking Into Wall Street – Venture Capital & Growth Equity Modeling

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Venture Capital & Growth Equity Modeling , Breaking Into Wall Street – Venture Capital & Growth Equity Modeling download

Breaking Into Wall Street – Venture Capital & Growth Equity Modeling

Ace Your InterviewsGet everything you need to answer deal/technical questions and complete case studies with confidence

Outperform At WorkThe more models and deal analyses you have, the better you’ll perform… and the higher your bonus will be

Let’s cut to the chase: There are quite a few venture capital and growth equity courses on the market, but most of them miss the mark because they do not teach what you need to know for interviews and case studies.

Most “courses” use one of the following (wrong) approaches:

Wrong Approach #1: Heavy Focus on Term Sheets – It’s good to know about the common legal and control terms in deals, but no VC or growth equity fund will test you based on these; they care mostly about your ability to evaluate investments. If they wanted summaries of written documents, they could pay an overpriced lawyer or ask ChatGPT!

Wrong Approach #2: Generic 3-Statement Models and Valuations – The problem here is that these models are not specific to what you do in venture capital and growth equity. Sure, it’s good to know how to build a basic 3-statement model… but it doesn’t matter unless you know how to use it to make an investment recommendation.

The correct approach – the one our course uses – is based on real-life case studies given in interviews.

Before creating this course, we gathered dozens of case study examples from students and readers who had been through VC, GE, and related interviews, and we synthesized the best parts into the course materials.

The goal was to highlight the most important points while “trimming the fat.”

Our approach focuses on the 3 most important points in venture capital and growth equity interviews:

1) The Numbers – You need to know the cap table math and financial analysis around a company’s growth and potential exit, so each case study here covers that.

2) The Market – But it’s equally important to understand the market, including why a company’s product might succeed or fail, its pricing and potential sales, and how it differentiates itself from competitors.

3) The Recommendation – Finally, you need to understand how to put together all the pieces to make an investment recommendation. You must be able to look at a company and its financial, product, and market information and say “Yes” or “No.”

No other training on the market puts together all the pieces quite like this because they focus on endless definitions and explanations of term sheets (yawn…) or generic models that could apply to virtually any finance job (you can get these for free in our YouTube channel!).

Everyone is pressed for time and distracted by endless content these days, so we focused on making this course accessible as well.

That means there are study plans for as little as 2-4 hours, but if you want to go into more depth, there are also 10-hour and 20-hour options available.

Think of it as a “Choose your own adventure,” but each door is a different case study, and the grand prize is a job offer at the VC or growth equity firm you’re most interested in.

The course is divided into 5 short case studies (think: weekend crash-course plan) and 4 longer case studies (think: on-the-job mastery).

Through these case studies, you’ll learn to:

• Analyze a startup’s market and customers, including cohort analysis for Software as a Service (SaaS) companies.
• Build capitalization tables (cap tables) for Seed and Series A – C funding rounds.
• Model the impact of liquidation preferences, employee option pools, participating preferred (capped and uncapped), and more.
• Discern if a startup’s financial forecasts are credible or closer to a fantasy novel.
• Understand how “down rounds” and terms like anti-dilution and pay-to-play affect exits and investment results.
• Value tech and biotech companies based on multiples and the DCF, with adjustments for “key person” risk, illiquidity, and more.
• Explain how biotech and tech startups differ and how that translates into valuation, cap table, and exit differences.
• Evaluate different deal structures, such as SAFE Notes vs. priced equity rounds, and the trade-offs between valuations and downside protection for the investors.
• Value biotech startups with a Sum-of-the-Parts DCF that analyzes each drug’s potential separately.
• Build advanced cap tables with support for features such as convertible notes, venture debt, pro-rata equity, anti-dilution provisions, participating preferred, and pari passu vs. ranked seniority.
• Make investment recommendations based on everything above, factoring the qualitative and quantitative factors.

If you want to answer interview questions and case studies with ease and leap up the ladder once you start working, this is the course for you.

Brian DeChesare
Founder, Breaking Into Wall Street

Here’s What You’ll Get When You Sign Up for This Venture Capital & Growth Equity Modeling Course:

 Introduction to Startups, Cap Tables, and VC/Growth Deals
WHY IT’S IMPORTANT: This training gets you up to speed quickly with startup evaluation and the analysis of deal terms and exit options – critical for all venture capital and growth equity roles.

You’ll complete 5 short case studies in this introductory training; each one is based on a company at a different stage in the lifecycle, such as Seed funding vs. Series A, B, C, and D rounds.

Through these case studies, you’ll learn how to evaluate deal terms for startup investments, assess their valuations, and determine if VC investors could plausibly earn their targeted returns multiples.

Each case study is based on a company in a different sector, ranging from AI to direct-to-consumer to SaaS and life sciences, so you’ll also understand the industry differences.

This entire section is designed to be a “weekend crash course,” so you quickly can learn the most important points without getting bogged down in minutiae.

 Startup and SaaS Financial Modeling and Valuation
WHY IT’S IMPORTANT: These lessons explain how to model and value a “small business” SaaS company based on a granular financial model with individual employees and customer contracts.

“Granular financial models” are the name of the game in venture capital and startups. If you can’t predict how much cash flow the company will generate in the next two quarters, how can you predict the amount of outside funding it might need to raise?

This case study walks you through the entire model, from revenue and expenses to the construction of “real” financial statements based on random and disorganized historical data (just like most startups in real life).

You’ll also learn to calculate and interpret key SaaS metrics, such as LTV / CAC, Gross and Net Retention, Payback Periods, and more.

 Late-Stage Exit and Growth Equity Modeling
WHY IT’S IMPORTANT: This training explains how to model and value later-stage companies and recommend the best exit option (M&A vs. IPO vs. SPAC), considering all the investor groups.

In this case study, you’ll learn how the analysis and valuation of a later-stage tech company differ from an early-stage one.

You’ll also learn how to model exit scenarios such as an IPO, a SPAC, and an M&A deal with a significant Earnout component and recommend the best one for the company’s short-term and long-term goals.

The last few lessons walk you through this company’s cap table and a flow-of-funds analysis, so you can see how the exit options affect the different investor groups and make a recommendation based on that.

Advanced Cap Table Case Study
WHY IT’S IMPORTANT: This module gives you practice with building a “real world” cap table based on messy financings, a down round, and ambiguous conversion and exit terms.

These lessons walk you through an advanced capitalization table with support for features such as convertible notes and venture debt, in addition to liquidation preferences and participating preferred stock.

You’ll learn how to model the conversions to common shares, how anti-dilution affects all the investors, and how to properly deal with options and warrants in an exit (including the circularity inherent in these calculations).

Finally, you’ll learn about the lenders’ perspective on the deal by calculating the returns to the venture debt firm responsible for an earlier funding round.

Sum-of-the-Parts Biotech Valuation
WHY IT’S IMPORTANT: This case study walks you through a full valuation of Ventyx as it attempts to raise follow-on equity, including drug-by-drug analysis.

These lessons break down the Sum-of-the-Parts DCF and valuation for biotech firms, from market research to revenue and cash flow estimates.

You’ll learn how to value each pipeline drug, risk-adjust for the probability of success, and then combine everything into a single corporate-level DCF that factors in net operating losses (NOLs) and tax savings.

In the final lessons, you’ll use this model to make an investment recommendation and support your findings with a quick analysis of the public comps and precedent transactions.

Commonly Asked Questions:

1. Business Model Innovation: Acknowledge the reality of a legitimate enterprise! Our approach involves the coordination of a collective purchase, in which the costs are shared among the participants. We utilize this cash to acquire renowned courses from sale pages and make them accessible to individuals with restricted financial resources. Our clients appreciate the affordability and accessibility we provide, despite the authors’ concerns.
2. Venture Capital & Growth Equity Modeling Course

• There are no scheduled coaching calls or sessions with the author.
• Access to the author’s private Facebook group or web portal is not permitted.
• No access to the author’s private membership forum.
• There is no direct email support available from the author or their team.