The 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. Author Alexander Haislip easily explains the most complex concepts in venture capital and how the business is evolving to meet modern market needs. He illuminates the opaque industry that drives innovation in Silicon Valley and beyond. * Learn how venture capital firms are organized and managed * Develop techniques for fundraising and making high-growth investments * Understand preferred stock provisions and startup valuation methods * Navigate recent regulatory changes and evaluate investment returns The author draws on more than half a decade of experience and interviews with high-level investors in the U.S. and abroad. Whether you are contemplating a career in this industry, hoping to raise money for an entrepreneurial endeavor, or are already a seasoned veteran of venture finance, the book's insights and real-world examples will cement your understanding. Essentials of Venture Capital is the first comprehensive book to explain venture capital, how it is changing and what it will look like in the future.
Preface
Acknowledgments
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