All Money Is Not Created Equal

All Money Is Not Created Equal

by David Spreng
Released July 2023
Publisher(s): Wiley
ISBN: 9781119887805

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Book description

Finance your company's growth without losing your stake in it

Too often, thanks to multiple rounds of equity investment, company founders wind up with only a small fraction of the businesses they start. But this situation isn't inevitable. The intelligent use of a variety of financing options—including debt financing—can help to maintain, or even grow, a founder's stake.

In All Money Is Not Created Equal: The Entrepreneur's Guide to Finding the Right Funding for Your Business, renowned Silicon Valley veteran David Spreng delivers an expert guide for entrepreneurs and founders seeking to maintain as much ownership stake as possible in the companies they create as they move through the various stages of the financing process. The book draws on the author's decades of experience as a venture capitalist, venture debt lender, and CEO of a publicly traded company in Silicon Valley, as well as interviews with entrepreneurs, board members, investors, and bankers.

Readers will also find:

  • A well-rounded and insightful perspective on the financing process informed by industry veterans
  • An informal and accessible exploration of a complex topic that remains critical to the success of entrepreneurs and founders
  • Discussions of alternatives to equity financing, including debt financing, in the growth phase of startups

An essential handbook for startup founders, entrepreneurs, and managers, All Money Is Not Created Equal also deserves a place in the hands of company board members, venture capitalists, investors, and investment bankers interested in the company financing process.

Table of contents

  1. Cover
  2. Title Page
  3. Copyright
  4. Dedication
  5. Foreword
  6. Acknowledgments
  7. Introduction
  8. Part One: Setting the Stage
    1. Chapter 1: A Tale of Two Companies
      1. Key Takeaways
    2. Chapter 2: All About Growth: My Journey from Venture Capital to Venture Debt
      1. Key Takeaways
  9. Part Two: Startups: Understanding the Arena
    1. Chapter 3: The Stages of a Startup
      1. What Funding Looks Like
      2. Seed
      3. Early Stage
      4. Late Stage
      5. Growth
      6. Key Takeaways
      7. Notes
    2. Chapter 4: Geography Matters – to a Point
      1. What's in a Name?
      2. Key Takeaways
      3. Notes
    3. Chapter 5: The Startup Ecosystem
      1. How Startup Funding Works
      2. Key Takeaways
      3. Notes
  10. Part Three: Getting the Money
    1. Chapter 6: Your First Outside Investors
      1. Eye of the Investor
      2. Key Takeaways
    2. Chapter 7: What Kind of Money Is Right for Your Business?
      1. When to Borrow Money
      2. Banks versus Venture Debt Lenders
      3. When Debt Doesn't Make Sense
      4. On the Fence
      5. Key Takeways
      6. Note
    3. Chapter 8: The Ins and Outs of Venture Capital
      1. How is venture capital different from angel money?
      2. What is the difference between venture capital and private equity?
      3. Where does the money for venture capital come from?
      4. How specifically does a fund work?
      5. How is the money from a fund invested?
      6. What does the fund get for its investment in a startup?
      7. What do founders get?
      8. When do LPs get returns from VC fund investments?
      9. When does the VC firm/general partner get paid out?
      10. When do founders see money?
      11. Why do investors take such risks with venture capital?
      12. Key Takeaways
    4. Chapter 9: Debt Is Not a Four-Letter Word
      1. Not Like Other Debt
      2. Key Takeaways
    5. Chapter 10: What a Deal with Debt Looks Like
      1. Getting Started
      2. The Process
      3. Going to the Board
      4. How Much?
      5. The Interest-Only Period
      6. Covenants Are Your Friend
      7. Key Takeaways
    6. Chapter 11: Making the Most of Debt
      1. Be Realistic
      2. Be Confident
      3. Know What Kind of Lender You're Dealing With
      4. What to Watch For
      5. Bank Money? Don't Bank on It
      6. Key Takeaways
    7. Chapter 12: Options for Exits
      1. Cons
      2. Alternative Exits
      3. On Their Radar
      4. Liquidity versus Liquidation
      5. Key Takeaways
      6. Notes
  11. Part Four: Making the Best Use of Your Money
    1. Chapter 13: Bullshitters, Liars, and Jerks
      1. Bullshitters
      2. Liars
      3. Bullshitting versus Lying
      4. Jerks
      5. Key Takeaways
    2. Chapter 14: Bullshitters, Liars, and Jerks, Part 2: What You Need to Be on Guard For
      1. Bullshitters
      2. Liars
      3. Transparency Is Essential
      4. Jerks
      5. Key Takeaways
    3. Chapter 15: Your Team: Getting the Right People in the Right Jobs
      1. Too Much Turnover
      2. The “Need for Speed”
      3. Making the Money Count versus Counting the Money
      4. Key Takeaways
    4. Chapter 16: Founder versus CEO
      1. Key Takeaways
    5. Chapter 17: Getting the Most from Your Board
      1. Structure
      2. Lead Director
      3. How the Board Adds Value
      4. Key Takeaways
    6. Chapter 18: The Moral Contract
      1. Key Takeaways
  12. Part Five: Going Forward
    1. Chapter 19: Runway's Story of Going Public
      1. Gating Events
      2. Key Takeaways
    2. Chapter 20: Conclusion
  13. Appendix
    1. Glossary
    2. Recommended Reading, Listening, and Viewing
    3. FAQs
    4. Sample Term Sheet
    5. Notes
  14. Index
  15. End User License Agreement

Product information

  • Title: All Money Is Not Created Equal
  • Author(s): David Spreng
  • Release date: July 2023
  • Publisher(s): Wiley
  • ISBN: 9781119887805