Lecture 7 - Foundations of Venture Capital:
Creating Value Post-Investment
Overview
Lecture 7 asks an honest question that limited partners care about: how much of a venture return comes from picking well, and how much from helping after the investment is made? That is the distinction between selection and treatment — and it is the frame for everything a good investor does once capital is committed.
The session works through the concrete levers of post-investment value: board governance, bringing in talent and professionalizing the company, follow-on discipline, regulatory and reimbursement strategy in MedTech, building relationships with key clinical opinion leaders, positioning the company for eventual acquirers, and mobilizing the syndicate. The through-line is the role of an investor's network — the part of the job that is hardest to see from the outside and often decides whether a promising company reaches a meaningful milestone. Illustrations use a hypothetical teaching company rather than any real portfolio company.
Learning Objectives
By the end of this session, a participant should be able to:
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Distinguish selection effects from treatment effects in venture returns.
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Describe the main levers investors use to create value after investing.
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Understand how board governance and professionalization shape outcomes.
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Explain how regulatory, reimbursement, and KOL strategy matter in MedTech.
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See how an investor's network contributes to a company's progress.
Key Concepts Covered
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Selection vs. treatment
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Board governance and control rights
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Talent and professionalization
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Follow-on discipline
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Regulatory and reimbursement strategy
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KOL networks and M&A positioning
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Syndicate support and the role of the network
Guest Speaker
Framework presentation followed by a fireside conversation and audience Q&A. Illustrations use a hypothetical teaching company; no real portfolio company is discussed.
Go Deeper
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Kaplan & Strömberg (2003) — Review of Economic Studies
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Gompers, Gornall, Kaplan & Strebulaev (2020) — Journal of Financial Economics
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Hellmann & Puri — research on venture capital and the professionalization of startups
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Sørensen (2007) — Journal of Finance
Educational content only. Not investment, legal, or tax advice, and not an offer of any security.