Sourcing, screening, valuation and term sheets

Module 02 / 5 · 65 min

Find and screen deals, value a young or growing company, build a cap table and read a term sheet in plain language.

In this module you will learn to

Build deal flow and screen opportunities against clear investment criteria
Run a first meeting and outline an investment memorandum
Value an early-stage company with the VC method and explain pre-money, post-money and dilution
Build a simple cap table and explain the key terms of a VC or PE term sheet

Built on

Erudite Africa course specification 3.j: Private Equity and Venture Capital, Levels 1 and 2 (October 2026)
Erudite Africa Training Module: Ethiopian Context, program overview and regulatory register (October 2026)
Investment Proclamation No. 1180/2020, Investment Regulation No. 474/2020 and Ethiopian Investment Board Directive No. 1082/2025; Commercial Code Proclamation No. 1243/2021
Capital Market Proclamation No. 1248/2021; ECMA Directive No. 980/2024; ECMA collective investment scheme and venture capital fund rules (reported, to confirm); ESX Rulebook (December 2024)
NBE directives as listed in the lessons: FXD/01/2024, FXD/04/2026, SBB/92/2024; NBE Monetary Policy Committee release No. 7 (July 2026)
IFC Performance Standards on Environmental and Social Sustainability, GIIN IRIS+ and the 2X Criteria

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.