From Concept to Wall Street: A Complete Guide to Entrepreneurship and Venture Capital

Chapter 7. Practical Aspects of Raising Venture Capital

INTRODUCTION

This chapter addresses the practical aspects of raising venture capital and the characteristics and the problems of each round of investments, starting from the contacts with the investors and ending in the receipt of the money. This chapter is aimed primarily at entrepreneurs who are raising venture capital for the first time and at others who have no experience in this field.

It is important to understand that the process of raising venture capital is complicated and that there are no guarantees of success. From among more than one million companies which are founded in the United States every year, less than 0.1% receive financing from the venture capital industry. Of every ...