Gucci Belts and Venture Finance

Venture Finance was engaging. With his designer shirts and big ol' Gucci belt, Professor Rossi paces around the front of the classroom in an attempt to get more steps added to his pedometer. Enthusiasm sweats from his brow.

I was pumped about venture finance. At the time, I was working for a private equity firm so I had a natural interest in a non corporate-finance finance class. Also, it seems that private equity is popping up everywhere, so the timing of the class seemed fitting. 

The Handsome Flying V's Final Presentation

We learned about angel investors, private equity funding, bootstrapping, having your "skin in the game" and lastly, how to succeed in life. "How to succeed in life" (my coined term) was my favorite part. In the last class, Rossi puts finance to the side for a bit and presents corporate brands that dominate. He highlights Apple (of course), Southwest, Harley Davidson and Disney. I'm a branding strategy guy, so the conversation was music to my ears. As Rossi put it, "it's all about the experience," which I couldn't agree with more.

At one point, he described a Gator football game, of which I attended two this past year (SC and LSU). Dang those games are such a blast (even for someone who can't name but two players on the field). Rossi asked a question, "Why do we opt into standing in the scorching sun for four hours, screaming next to sweaty drunkards, dealing with overloads of traffic, buying $5.00 bottles of gatorade? Especially when your couch is so much more comfortable? Why would nearly 90,000 crazies do such a thing every Saturday?" Of course, it's about the experience. 

Rossi showed us how to gauge the health of a company through their financial statements, and he taught us how to ask the right questions to understand the most important part of a company - the people. But outside of the people, the class really came down to understanding and quantifying risks. Risks are everywhere and management risks, sales and marketing risks, development risks, and commercialization risks are the foundation of valuation. 

We got a double whammy of risks in this Term 2 - while Rossi was busy caressing his Gucci belt, we were also learning how to not be like the former BP CEO in Risk and Crisis management, taught by Professor Florig. 

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For the finance final, every team had to put together a valuation and presentation for Zipcar, the hippy, Boston-born car-sharing club. If you want to learn more about it, let me know - you learn a lot about a company after sitting through 14 presentations on them. No question, our team's presentation was the best. Brad, our New England accented sports fanatic, thought it'd be fun to have a cocktail party in the front of the classroom. We popped open a fake bottle of Sam Adams, and we were off. Rossi was speachless, and awarded us an A.

Cocktail Party Final Presentation

I was glad the term was over because it meant a party was due. Derrick, in his infinite wisdom, opted for a keg of magic juice (or whatever drink name would imply a sugary liquid that goes down too easy and effects your brain too quickly). We partied at the top of the Holiday Inn, sun shining strong, Five Star pizza trying to soak up that sugary goodness, and stories of the semester floating around the pool. We were halfway through this MBA venture and our risk of making it through were slowly being mitigated.