Description
Book SynopsisThe first comprehensive guide for mastering venture capital Essentials of Venture Capital is your guide to understanding how venture capital and technology finance works from the inside out.
Table of ContentsPreface ix
Acknowledgments xv
1 Industry Overview 1
What Is Venture Capital? 1
How Venture Capital Works 8
Performance Expectations 16
Venture Capital in Crisis 28
Summary 37
Notes 38
2 Careers and Organization 39
Launching a Career 39
Nurturing Your Career as a Venture Capitalist 43
Firm Structure and Organization 54
Planning for the Future 60
Summary 64
Notes 66
3 Fundraising 67
Fundraising Is a Venture Capitalist’s Number-One Priority 68
What Limited Partners Want 71
Working with Limited Partners 73
Why Invest in Funds That Lose Money? 80
First-Time Funds 89
Bigger Funds 97
The Future of Fundraising 99
Summary 101
Notes 103
4 Investing Basics 105
What Makes a Good Deal? 105
Macroeconomics of Investing 109
Investment Process 114
Stock Classifications 118
Typical Preferred Stock Clauses 120
Stock During Different Stages of Development 128
Syndication 131
Valuation 133
Summary 140
Notes 142
5 Finding Investments 145
Gathering Opportunities 146
Hunting for Investments 148
Growing Your Own Investments 159
Alternative Methods 163
Missed Opportunities 169
Summary 170
Notes 172
6 Getting the Money Back 175
Gains from Investment 176
Going Public 178
Getting Acquired 188
The IPO Crisis 195
Solving the IPO Problem 197
Are Fewer IPOs a Bad Thing? 200
New Strategies and Adaptations for Liquidity 204
Summary 216
Notes 219
7 Booms, Bubbles, and Busts 223
Riding the Waves 225
Boom Beginnings 230
Bubbles 237
Busts 242
Summary 249
Notes 251
8 Going Global 253
Strategies for Foreign Investing 254
Venture Capital Outside the United States 263
Israel 264
China 270
India 277
Russia 283
Europe 288
The Rest of the World 296
Summary 300
Notes 303
About the Author 307
Index 309
