Book description
Venture capital demystified, for both investors and entrepreneursBuilding Wealth Through Venture Capital is a practical how-to guide for both sides of the table—investors and the entrepreneurs they fund. This expert author duo combines renowned venture capital experience along with the perspective of a traditional corporate executive and investor sold on this asset class more recently to flesh out wealth-building opportunities for both investors and entrepreneurs. Very simply, this book will guide investors in learning how to succeed at making money in venture capital investment, and it will help entrepreneurs increase their odds of success at attracting venture capital funds and then employing those funds toward a lucrative conclusion.
The authors explain why venture capital will remain the asset class best-positioned to capitalize on technological innovation in the coming years. They go on to demystify the market for those seeking guidance on reaping its rich returns. Learn what it takes to succeed as an investor or entrepreneur, and gain the wisdom of experience as the authors explain key factors that determine outcomes.
Through a relaxed, down-to-earth narrative, the authors share their own experiences as well as those of their nationally-recognized colleagues. Illustrative anecdotes and personal interviews expand upon important points, and case studies demonstrate the practical effect of critical concepts and actions. World-class professional expertise and personal experience come together to help you:
- Understand the nature of both venture capitalists and successful entrepreneurs
- Develop wealth-building capabilities in investing in or attracting venture capital
- Learn how entrepreneurs and investors can work together toward a lucrative conclusion
- Examine the ways in which recent financial regulatory developments and technological advances already in place are democratizing access to venture capital, enabling unprecedented expansion of venture capital opportunities
As the field expands through these regulatory and technological developments, savvy participants will have unprecedented opportunity to benefit. Building Wealth Through Venture Capital explains what you need to know, and shows you how to navigate this arcane but lucrative asset class.
Table of contents
- Cover
- Title Page
- Preface
- Introduction
-
PART I: Understanding the Major Players
- CHAPTER 1: The Venture Capitalist: Funder of Dreams
-
CHAPTER 2: The Entrepreneur: His Mind and His “Cultivation”
- DNA of the Entrepreneur
- Driven by Passion
- Motivated by the Opportunity to Make a Positive Difference
- The Need to Recognize Reality: Beware the Seduction of Money and Power
- The Importance of Fortunate Timing
- Experience and Maturity Can Be Important, Too
- Resolute, Energetic Drive Is the Most Common Denominator
- They're Not Just Resolute; They Are Bold and Daring, Too
- Environments That Cultivate Entrepreneurs
- The Emergence of an Entrepreneurial Ecosystem in Chicago
- The Age‐Old Question: Nature or Nurture?
-
PART II: For the Investor: A Guide to Realizing Big Returns
-
CHAPTER 3: Why Should You Invest in Venture Capital?
- It Makes Sense Even for Conservative Investors
- A Hedge Against Inflation and Lengthy Bear Markets
- Hedge Funds and Private Equity Buyout Funds No Longer So Attractive
- Venture Capital's Strong Historical Returns
- Don't Invest More Than You Can Afford to Lose
- Substantial Institutions Love Venture Capital
- Emotional Reasons for Venture Capital Investment
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CHAPTER 4: How to Find the Right Venture Capital Firm
- Surveying the Landscape of Venture Capital Firms
- Firm Selection by Venture Stage Focus
- Why Should You Care About a Firm's Venture Stage Focus?
- Firm Selection by Industry Focus
- Firm Selection Based on Geographic Focus
- The New Online Equity Crowdfunders
- Other Resources for Selecting a Venture Capital Firm
- Vetting Venture Capital Firm Candidates
- CHAPTER 5: Venture Capital Investment versus “Buffett's Real Rules” of Investment
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CHAPTER 6: Avoid the Seduction of Unicorns: Get in Early
- It's All High Risk, So Get in Early When the Biggest Returns Are Possible
- Excessive Unicorn Valuations: All the Risk without the Big Reward Potential
- Business Valuation 101
- Applying Business Valuation 101 to Venture Capital Investment
- Try Applying That Logic to Unicorns
- Why Many Unicorn Valuations Don't Make Sense to Us
- Unicorns Having Difficulty Exiting and Delivering Investor Returns
- Now You Know Why We Believe in Early‐Stage Investment
- Our Concerns for the Venture Capital Industry and Individual Investors
- CHAPTER 7: Finding the Highest Quality Investments at the Right Price
-
CHAPTER 3: Why Should You Invest in Venture Capital?
-
PART III: For the Entrepreneur: A Guide to the Money Search and All That Follows
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CHAPTER 8: The Mating Dance: Prospecting for a Venture Capital Investor
- Actually, Lots of Sources and Lots of Available Dollars
- How to Appeal to the Venture Capitalist
- Prospecting for Gold, or, Better Yet, Drilling for Oil
- Venture Capitalists' View of Deal Stages
- Targeting Your Money Search Based on VC Industry Focus
- How to Do All This VC Screening
- An Alternative: Introduction through Expert Middlemen
- Making Contact with the VC
- Other Ways of Making Contact
- Evolution of the Venture Capital Community: Angel Groups and Online VC Portals
- More on Online Venture Capital Investment Platforms
-
CHAPTER 9: The Final Exam: Due Diligence
- Is Due Diligence Really That Important?
- A Warning to Entrepreneurs: Beware of Limited Due Diligence
- Return on Due Diligence Investment Tough to Quantify
- Make No Mistake: Due Diligence Is Important
- What Due Diligence Is All About
- The Due Diligence Process
- The Focus of Due Diligence Questioning
- Importance of Treating the VC with Respect and Sincerity
- Time Can Be of the Essence
- Some Advice for Less Experienced VCs
- Some Advice for Less Experienced Investors
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CHAPTER 10: Finding Your Deal‐Doing Lawyer
- So Many Types of Lawyers to Consider
- Why You Need a Deal‐Doing Lawyer
- Knowledge of the Venture Capital Process
- Some Realities to Consider
- Finding the Right Legal Counsel
- Speed Can Be Important
- Lots of Legal Consistency
- Build Trust, Not Litigation
- The Typical Process
- Differing Degrees of Legal Orientation
-
CHAPTER 11: Financing Has Arrived and “You're Married”…Now What?
- Now You Answer to a Higher Authority—a Board of Directors
- Be Ready to Make Management Changes
- Anticipate Complications and Management Challenges
- The Critical Search for Talent as the Venture Evolves
- Executive Search Consultants: Expensive, But Can Be Worth It
- The Board's Role as Guardians of the Venture and the Investors' Money
- Board Meetings
- Bankers and Suppliers: Sources of Lower Cost Funds
- Following the Money
- When Crisis Management Is Required
-
CHAPTER 12: The Last Dance: A Successful Exit
- What Constitutes a Successful Exit?
- A Range of Exit Options
- IPO as a Badge of Honor
- Remaining Private May Better Meet the Entrepreneur's Needs
- Going Public Can Also Mean Vulnerability to Rumors and Ruin
- Other Risks of Going Public
- Beware of Investment Bankers' Inherent Drive to Go Public
- Investment Bankers and Venture Capitalists Are Not the Same
- The Groupon Story: A Post‐IPO Nightmare
- Lessons Reinforced by Groupon's Story
- Timely Liquidation Less Risky than Betting on Volatile Public Markets
- There Are Exceptions: The Nanophase Technologies Story
- Sale to or Merger with a Complementary Business
- Benefits of Being Acquired: The Cleversafe Story
- Issues to Consider Before Selling the Baby
- Truly “All's Well that Ends Well”
- CHAPTER 13: Interview with a Successful Entrepreneur
-
CHAPTER 8: The Mating Dance: Prospecting for a Venture Capital Investor
-
PART IV: Looking Ahead: What’s to Come
-
CHAPTER 14: The Foreseeable Future
- The Case for Even Greater Innovation and Venture Capital Opportunity
- Technology Advancement—and Investment—Opportunities
- Artificial Intelligence: Computers Becoming Even More Integral to Our Lives
- Will the Computer Be Wise?
- Big Data and Predictive Analytics: The Why of Everything
- Biology as a Computer
- Nanotechnology: The Domain of the Very Small
- Robotics: Machines Come to Life
- Virtual Reality: The Unreal Simulating the Real
- The Internet and the Coming “Third Wave”
- Biomedical Advances through Information Flow
-
CHAPTER 14: The Foreseeable Future
- Acknowledgments
- About the Authors
- Index
- End User License Agreement
Product information
- Title: Building Wealth through Venture Capital
- Author(s):
- Release date: July 2017
- Publisher(s): Wiley
- ISBN: 9781119409359
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