M10-S3 - Contracting for Value Creation: The Venture Capital Process

Reference Document :

Leleux and Martel: "Venture Capital Investment Contracts: A Primer and Taxonomy”

, IMD Note. This document is not to be read: it is a reference technical note covering in detail many issues in deal structuring in early stage companies. Objectives: Introduce the venture capital process and valuation in that context. Provide an inside perspective on the interaction between valuation and contracting. Read the E-docs inc case Preparation Questions : 1. What do you think about edocs, Inc. as an investment opportunity? Strengths / weaknesses and overall evaluation. 2. What do you think about the deal between the edocs, Inc. management team and the partners at Charles River Ventures (CRV)? 3. How do you analyze the requirement that edocs "not shop around the deal"? Do you see it as normal or abusive? 4. What are the key drivers of any "deal"? M10-S3 - Case - E-docs inc