INSEAD the business school for the world

Selected Case

published: 18 Dec 2009, 48 Pages
  • Research Area: Decision Sciences
  • Industry: Venture Capital, Utilities
  • Region: Europe

Abstract:
Direct Energie is a highly successful start-up in the French electricity distribution industry, providing electricity to SMEs. Due to its rapid expansion, the company is looking to raise additional funds, weighing its options whether to do so simply in France or also in the UK. NBGI Ventures, which has a chance to make such an investment, now needs to assess the opportunities and risks involved, and from this formulate a term sheet and a valuation to present to Direct Energie.

Pedagogical Objectives:
The case frames the venture investment opportunity and the accompanying items - term sheet and PPM - as presented to the VC fund. The objective is to provide a basic understanding of the problems, questions and deliverables typical in a VC investment. It can be used for self study and in-class teaching. By putting the student in the VC?s position and making references to term sheet vocabulary and structure, students can proceed at a pace and depth they are comfortable with. If used for self study, the solution material (TN) should be made available to students.

Keywords:
Venture Capital, Nbgi Ventures, Early Stage Investing, Exit Strategy, Direct Energie, Term Sheet, Electricity Provider, Valuation, Edf, Oil Price Sensitivity, Electricity Spot Prices, Benefit of International Investor, Negotiations with Founders, Pro-Rata


Share