Agenda
Recording for ClassHow Winter & Spring Terms Will WorkWinter TermSpring TermKey IdeasHow the Fund is DesignedLet’s make a presentation
Recording for Class
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How Winter & Spring Terms Will Work
Fall
Introduction — theory & simulation
Winter
Application, rounds 1 & 2
Spring
Application, rounds 3 & 4
Winter Term
Key Deliverable: Each student joins a team of other students (3-4 per team) and presents about deal flow twice during the term. A pitch includes an investment memo and a presentation.
Presentation Template - Link
# | 2026 Date | Event |
1 | Jan 8, 2026 | Kick-Off |
2 | Jan 15, 2026 | Pitch 1: Choose a Deal & Team |
3 | Jan 22, 2026 | Pitch 1: Prep — Submit assets (research, memo, presentation) - 50% complete |
4 | Jan 29, 2026 | Pitch 1: Prep — Submit assets (research, memo, presentation) - first complete draft |
5 | Feb 5, 2026 | Pitch 1: Presentation Day |
6 | Feb 12, 2026 | Pitch 2: Choose a Deal & Team |
7 | Feb 19, 2026 | Pitch 2: 50% of assets complete — Submit assets (research, memo, presentation) - 50% complete |
8 | Feb 26, 2026 | Pitch 2: First full draft complete — Submit assets (research, memo, presentation) - first complete draft |
9 | Mar 5, 2026 | Pitch 2: Presentation Day |
10 | Mar 12, 2026 | Discuss screening calls |
Spring Term
Key Deliverable: Each student joins a team of other students (3-4 per team) and pitches 2 deals during the term. A pitch includes an investment memo and a presentation.
Week | 2026 Date | Content | Assignment |
1 | Apr 2, 2026 | Kick-Off | ㅤ |
2 | Apr 9, 2026 | Pitch 3: Choose a Deal & Team | Team’s share their team assignment (owner, memo, presentation, [optional: research]) |
3 | Apr 16, 2026 | Pitch 3: Prep | Submit assets (research, memo, presentation) - 50% complete |
4 | Apr 23, 2026 | Pitch 3: Prep | Submit assets (research, memo, presentation) - first complete draft |
5 | Apr 30, 2026 | Pitch 3: Presentation Day | ㅤ |
6 | May 7, 2026 | Pitch 4: Choose a Deal & Team | Team’s share their team assignment (owner, memo, presentation, [optional: research]) |
7 | May 14, 2026 | Pitch 4: 50% of assets complete | Submit assets (research, memo, presentation) - 50% complete |
8 | May 21, 2026 | Pitch 4: First full draft complete | Submit assets (research, memo, presentation) - first complete draft |
9 | May 28, 2026 | Pitch 4: Presentation Day, Public Showcase (invite select guests) | ㅤ |
10 | Jun 4, 2026 | End of Year Celebration | ㅤ |
Key Ideas
How the Fund is Designed
Diagram Class → IC → COO
The fund is 100% owned by PSU Foundation (”Chief Operating Officer”)
COO has signing authority (i.e., final say on investments)
Investment Committee (IC) recommends deals to the COO
Class recommends deals to the COO
Investment Policy Statement
Revised Investment Criteria
Criteria
30% — Impact
20% — DEI
20% — Return / ROI
10% — Geography
10% — Educational Opportunity
5% — Optics
5% — Diversified Portfolio
How VCs Make Money
$100M fund
$2M in Management Fees to GPs
For GPs for operating the fund
Annual fee
2% of capital commitments = 2% * $100M = $2M
Scenario 1 $1B in net profits from exits
$100M in Contributed Capital to GPs & LPs
How much money you put in
$180M in Carried Interest to GPs
GPs get their rewards
$720M in Contributed Capital to GPs & LPs
Remainder is distributed equally
Scenario 2 $50M in net profits from exits
$50M in Contributed Capital to GPs & LPs
How much money you put in
$0M in Carried Interest to GPs
GPs get their rewards
$0M in Contributed Capital to GPs & LPs
Remainder is distributed equally
Power Law — what really drives big net profits
“6% of deals drive 60% of returns”
Preferable to find one “unicorn” ($1B exit) than 10 $100M exits
What makes a lead investor
Write the term sheet and negotiate the deal with the entrepreneur
Sufficient expertise in term sheets
Put the most money in the round
Win the most if the startup wins
What perks do lead investors get
Serve on the board (i.e., decision-making power)
Controlled the preferred series of stock (e.g., better financial position for exits)
Close relationship with the founders
What that means for follow-on investors
Less influence on valuation and terms (must choose among existing options)
Less contact with founders
Good enough to make a handshake deal.
Let’s make a presentation
We’ll go through Stratsea and make their deck