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INTRO TO GROWTH

Chapter kickoff

1. What is growth stage?

2. Growth vs. VC & buyout

3. How growth investors make money

4. Growth investor mindset

5. Evolution of growth stage firms

6. What makes a good growth investment

Additional resources & how to upgrade

Quiz: Intro to Growth

1 Quiz

Quiz: Intro to Growth

VALUATION

Chapter kickoff

1. Intro to growth valuation

2. Valuation framework – Buy $2 tomorrow for $1 today

3. Valuation framework – Growth trumps all

4. Valuation framework – Growth vs. multiple compression

5. Challenges in valuing growth

6. Valuation process

7. Step #1 – Pick metric

8. Step #2 – Comps for entry multiple

9. Step #3 – Benchmarking

10. Step #4 – Financial projections for exit

11. Step #5 – Exit multiple

12. Step #6 – Scenario analysis

13. Step #7 – Ability to pay

14. Conclusion

Quiz: Valuation

1 Quiz

Quiz: Valuation

FINANCIAL MODELING: PAPER MODEL

Chapter kickoff

1. Intro

2. What to expect

3. What are paper LBOs

4. Case study prompt + ASBICIR

5. Model walkthrough – Assumptions, S&U

6. Model walkthrough – I:S, C:F, Interest

7. Model walkthrough – Returns

8. Case study Q&A + outro

Quiz: Paper Model

1 Quiz

Quiz: Paper model

FINANCIAL MODELING: LBO MODEL

Chapter kickoff

1. Intro + LBO vs. Growth

2. Updated case study prompt

3. Model – Template

4. Model – Assumptions + S&U

5. Model – IS, Pro Forma BS

6. Model – BS, CF

7. Model – Debt Schedule 1

8. Model – Debt Schedule 2

9. Model – CF, Interest

10. Model – Returns

11. Prompt Q&A Discussion

Quiz: LBO model

1 Quiz

Quiz: Full LBO model

FINANCIAL MODELING: GROWTH MODEL

Chapter kickoff

1. Getting started

2. Case study prompt

3. Model template walkthrough

4. Pre-money, post-money valuation

5. Leverage – no drawn debt at close

6. Minority vs. control – (Part 1) Cap table, primary vs. secondary, rollover equity

7. Minority vs. control – (Part 2) PF BS, exit proceeds

8a. Employee option pool

8b. Pre-money vs post-money options

9. Net operating losses

10. Cohort analysis & SaaS revenue waterfall

11. SaaS build – Sales & marketing, CAC

12. Sensitizing projections

13. Unit economics – LTV, CAC

14. SaaS metrics

15. **Bonus** Expected dilution

16. IPO exits

17. Valuation

18. Liquidation preference

19. Prompt discussion Q&A + Wrap up

20. Update to net operating losses

Quiz: Growth model

1 Quiz

Quiz: Growth model

FINANCIAL MODELING: PRACTICE

Chapter kickoff

Direct-to-consumer (PROMPT)

Direct-to-consumer (SOLUTION)

Two-Sided Marketplace (PROMPT)

Two-Sided Marketplace (SOLUTION)

MARKET THESIS

Chapter kickoff

1. Intro

2. What to expect

3. Example case study prompts

4. Case study example

5. Thesis template

6. Top resources

7. Step-by-step process & Step 1 – Brainstorm trends

8. Step 2 – Trends to Markets

9. Step 3 – Research firm

10. Step 4 – Favor strong business models

11. Step 5 – Favor large markets

12. Step 6 – Favor markets with prospects

13. Step 7 – Favor markets with exits

14. Step 8 – Prep for interview questions

15. Step 9 – Fill out presentation template

1 Quiz

MOCK COLD CALL

3. Cold calling is underrated

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Intro to growth

3. How growth investors make money

Growth Equity Interview Guide – Standard 3. How growth investors make money

FAQ: What IRR do growth investors target?

This can vary by fund, but more importantly by time period and macro environment.

For instance, when interest rates are low, growth funds tend to achieve higher returns. And vice versa.

That said, most funds underwrite deals to a 25% IRR or above.

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