Students from the University of Waterloo take home the win at the Venture Capital & Entrepreneurship Case Competition (VCEC). Comprised of a mix of AFM, and CFM students, Shivam Dubey (3A, AFM), David Zhao (3A,AFM), Jun Park (3A, CFM) and Fineas Tatar (3A,AFM), the team attributed their success to the diversity of experience they bring through each of their programs. This annual competition is held by the W5 – Western Entrepreneurship Association and the Western Venture Association. The case competition is structured to provide experience that mirrors real-life pitching as a startup company and to evaluate companies as if the team was a venture capitalist.
The VCEC is a competition that creates collaboration between entrepreneurship and venture capitalist. Teams are able to compete as an Entrepreneurship team, or a Venture Capital team. Entrepreneurship teams are challenged to create a start-up (based on given parameters) to pitch and receive funding. The Venture Capital teams are challenged to create and present their strategies on how they plan to spend their capital.
The SAF students entered as a Venture Capital (VC) team. VC teams were required to propose their newly created venture fund by presenting to a panel of real-life industry Venture Capitalists their investment and management strategies, and who they identified as potential target companies. “We researched multiple verticals thoroughly, and combined with what we learned from SVF to make our VC Fund proposal deck,” stated Fineas. The VC teams were allocated capital to which they used to select the start-up the team wished to invest in.
The Entrepreneurship team focused on putting together presentations to best pitch their company to acquire the most amount of funding from the VC teams. The top three Entrepreneurship teams advanced to the final round by acquiring the most funding from the VC teams.
The winning Entrepreneurship team was determined by having the highest exit multiplier, an imaginary figure that determined how much the original VC funding would grow. The Waterloo VC team selected to invest the majority of their funding into the winning Entrepreneurship team. This selection resulted in the highest return on their invested capital which ultimately helped them win the competition.
Being on the venture fund team [SVF] definitely gave us an advantage since we came into the competition with real world experience. Knowing what venture capital deal structures were like, what to look for when evaluating a start-up, and having experience doing due diligence and market sizing work on a variety of different industries helped us win.