Capstone – Project Charter

Empower Startups with Capital Through Venture Debt

A Collaboration Between

Engagement Synopsis

We are interested in following a model based in debt financing that will empower startups with the capital they need, while allowing Next Gen to amass a portfolio of early-stage companies. Our current vision is to provide startups with the cash they need, but are unable to find in the market (due to a lack of investor desire or additional factors). The goal would be to provide lower, more attractive interest rates, reasonable payback timeframes, unsecured loans,  NextGen as a result develops longstanding relationships with these startups, including repayment of principal, interest, and a certain amount of equity. The companies as a result receive the cash necessary to grow

HOST VENUE ADDRESS

  • Next Gen HQ
    • 530 5th Ave (between 44th and 45th Streets)
    • 9th Floor
    • New York, NY 10036

REQUIRED PREREQUISITES

LEARNING OBJECTIVES

  • If successful, students will...
    • Learn the 'ins-and-outs' of the venture debt industry -- a rising sector of startup investing.
    • Explore what programs, firms, accelerators, etc. are currently on the market and available for startups, including which models are performing well and which are falling short.
    • Evaluate and measure a startup's willingness to part with equity for cash, which will be helpful in any profession concerning investing.
    • Contribute to a new vertical that may be core to Next Gen's future.

Company Information

CompanyNext Gen
HQNew York
RevenueUnlisted
Employees5-10
StageEstablished Startup
Hiring PotentialFollow-on Projects, Formal Internship, Entry Level Full-Time, Upper Level Full-Time
Websitehttp://www.ngsummit.com

Company Overview

NextGen is the premier business hub, community, and event series empowering entrepreneurs with the resources, knowledge, and mentorship to grow their businesses. At Next Gen, we work with over 20,000 entrepreneurs and 4,000 startups — many of whom note fundraising as a primary concern. To further our value-add, we have built a robust network of venture investors, spanning hundreds of angels, VC firms, and institutions, that we leverage to engage with our members. We frequently host pitch competitions to bridge these new connections, as well. To date, outside of the formal pitch events, we have worked to connect individual companies with applicable investors on a case-by-case basis, sorting by industry, stage, and general fit. Now, we are seeking to explore a venture debt model that will enable Next Gen to support our top entrepreneurs while obtaining equity for long term gain.

Company Supervising Team

Co-founder

Dylan

[email protected]

Course Info & Engagement Details

SchoolUniversity of Notre Dame Mendoza College of Business
Engagement FormatCapstone - Small Team Consulting Project - Students work in small groups of 2-6 directly with faculty and host company project champions on developing real solutions to real-world challenges.
ProgramCollege of Business
Course2019 FALL – MBA Interterm (APPLY)
Level
Students Enrolled120 Enrolled, 4-5 per group per project
Meeting Day & Time10/14 - 10/17/2019 on-site at host company
Student Time Commitment1-3 Hours Per Week
Company Time Commitment3-5 Hours
Duration4 days (10/15/2019 - 10/17/2019)
Departments InvolvedGrowth Strategy
Product Design & Development
Purchasing, Logistics, Supply Chain
Reporting, Financial Planning & Analysis
Sales & Business Development
File Attachments

School Supervisors

Instructor

Alice

[email protected]

Students

There are currently no students assigned.

Collaboration Timeline

  • August 29, 2019

    Finalize Project Details and Legal Documents – We’ll help build to project and ensure it’s appropriate for a group of MBAs to complete over a one-week period.

  • September 13, 2019

    MBAs Select Projects – Students rank their top three projects and are assigned based on their backgrounds and skillsets.

  • September 30, 2019

    Students are Provided Background Information – Students begin to ramp up for the engagement

  • October 14, 2019

    STUDENTS ON-SITE: KICKOFF MEETING – Students begin to work on the project. Company introduces key personnel and answers questions about the business model and project.

  • October 16, 2019

    STUDENTS ON-SITE: WORKING WITH DAILY CHECK-IN

  • October 16, 2019

    STUDENTS ON-SITE: WORKING WITH DAILY CHECK-IN

  • October 17, 2019

    STUDENTS ON-SITE: FINAL PRESENTATION

Key Milestones & Project Process

  • October 14, 2019 - Entrepreneurial Financing Market Research

    • What’s types of creative investment vehicles are out there?
    • Crowd Funding vs. Venture Debt vs. Traditional VC Funding
    • What are the pros and cons of each financing model?

  • October 16, 2019 - Establish Plan for Debt Financing

    • What benefits do entrepreneurs need?
    • Why would this financing model be beneficial to entrepreneurs?
    • How would the debt investment need to be structured?
    • What legal paperwork is required?
    • How would this debt investment be framed/marketed to entrepreneurs?

  • October 17, 2019 - Risk & Growth Analysis

    • How does this model scale?
    • What are the risks as we scale?