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Startups and Venture Capital

Vak
2024-2025

Admission requirements

The course is open to law students, students from other relevant disciplines and exchange students. An introductory class on corporations or business organizations is recommended but not required.

Description

This course provides a brief overview of U.S. venture capital and the role of “startup lawyers” in Silicon Valley. Topics will include entity formation, equity compensation, conventional financing terms, and corporate governance. We will also discuss the broader startup and venture capital “ecosystem” beyond purely legal issues.

Course objectives

Objectives of the course: By the end of the term each student should:

  • Understand the capital structure of a U.S. startup, including common stock, preferred stock, and equity compensation.

  • Be capable of producing a capitalization table that describes a company’s capital structure before and after a proposed financing.

  • Understand conventional terms of seed and venture capital financings, such as liquidation preferences and conversion rights.

  • Be capable of recognizing those conventional terms in actual agreement language.

  • Recognize governance challenges faced by startup boards, such as conflicts between founders and VC investors.

  • Build a basic vocabulary relating to the VC system in Silicon Valley.

Timetable

Check MyTimetable.

Mode of instruction

  • Number of (2 hour) lectures: 10 lectures of 2 hours

  • Names of lecturers: Professor Abe Cable

  • Required preparation by students: Assigned readings described in the syllabus and related exercises.

Assessment method

Examination form(s)
Written exam (English) consisting of short answer questions and multiple-choice questions.

Submission procedures
none

Areas to be tested within the exam
The examination syllabus consists of the required reading (literature) for the course, the course information guide and the subjects taught in the lectures, the seminars and all other instructions which are part of the course.

Reading list

Obligatory course materials
Literature: readings to be posted on Brightspace

Course information guide:

  • Outline as posted on Brightspace

Reader:

  • To be announced on Brightspace

*

Recommended course materials:

  • To be announced on Brightspace*

Registration

Registration for courses and exams takes place via MyStudymap. If you do not have access to MyStudymap (guest students), look here (under the Law-tab) for more information on the registration procedure in your situation.  

Exchange students have priority and will be registered for the course first by the Office for International Education. Any remaining seats will be available for students from Leiden University and other Dutch Universities.

Contact

  • Coordinator: Mrs. Mahshid Alizadeh, LLM

  • Email: incomingexchange@law.leidenuniv.nl

Remarks

A maximum of 25 students can participate in this course.