Skip to Main Content
Venture Deals, 4th Edition
book

Venture Deals, 4th Edition

by Brad Feld, Jason Mendelson
August 2019
Beginner content levelBeginner
368 pages
9h 33m
English
Wiley
Audiobook available
Content preview from Venture Deals, 4th Edition

CHAPTER 1The Players

While it might seem like there are only two players in the financing dance—the entrepreneur and the venture capitalist—there are often others, including angel investors, lawyers, accountants, and mentors. Any entrepreneur who has created a company that has gone through multiple financings knows that the number of people involved can quickly spiral out of control. This is especially true if you aren’t sure who is actually making the decisions at each step along the way.

The experience, motivation, and relative power of each participant in a financing can be complex, and the implications are often mysterious. Let’s begin our journey to understanding venture capital financings by making sure we understand each player and the dynamics surrounding the participants.

The Entrepreneur

Not all investors, bankers, and lawyers realize it, but the entrepreneur is the center of the entrepreneurial universe. Without entrepreneurs there would be no term sheets and no startup ecosystem.

Throughout this book we use the terms entrepreneur and founder interchangeably. While some companies have only one founder, many have two, three, or even more. Sometimes these cofounders are equals; other times they aren’t. Regardless of the number, they each have a key role in the formation of the company and any financing that occurs.

The founders can’t and shouldn’t outsource their involvement in a financing to their lawyers. There are many issues in a financing negotiation that only ...

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

Venture Deals, 4th Edition

Venture Deals, 4th Edition

Brad Feld, Jason Mendelson
Venture Deals, 3rd Edition

Venture Deals, 3rd Edition

Brad Feld, Jason Mendelson
Fundamentals of Corporate Finance, Second Edition

Fundamentals of Corporate Finance, Second Edition

Robert Parrino, David S. Kidwell, Thomas W. Bates

Publisher Resources

ISBN: 9781119594826Purchase book