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This course examines the venture capital (VC) financing model from both a theoretical and a practical perspective. The course traces the start-up process from initial formation of a new venture and angel investments, through multiple institutional venture capital financing rounds, with a view to potential exits via acquisition or initial public offering. The class will analyze each step in the process from the perspective of the business entity, the founders and employees, the investors, and the lawyers for each party. It also will consider the incentives and control structures used at each stage of financing, with a focus on both the underlying economic and financial theory, as well as on pragmatic considerations in structuring the transactions. Students will learn the VC business model to understand what makes it unique from other investment forms and how that impacts the startup ecosystem. Students will be expected to participate in teams in a term sheet negotiation exercise, become familiar with spreadsheet capitalization tables, participate in class discussions, and sit for an examination. There will be required readings for each session that include a range of materials from law review articles and case law to model deal documents and case studies. Some sessions will include guest speakers with experience in VC or entrepreneurship. This course is co-taught by Gordon Davidson and Michael Esquivel. Both are partners at Fenwick & West LLP who advise technology companies, startups, and venture capitalists. Elements used in grading: Class participation/assignments, negotiation exercises and written summary, and the final exam (open book).