Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist Author: Brad Feld | Language: English | ISBN:
B00AO2PWOI | Format: PDF
Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist Description
A full revised edition of the Wall Street Journal bestselling book on startups and entrepreneurshipAs each new generation of entrepreneurs emerges, there is a renewed interest in how venture capital deals come together. Yet there is little reliable information focused on venture capital deals. Nobody understands this better than authors Brad Feld and Jason Mendelson. For more than twenty years, they've been involved in hundreds of venture capital financings, and now, with the Second Edition of Venture Deals, they continue to share their experiences in this field with you.
Engaging and informative, this reliable resource skillfully outlines the essential elements of the venture capital term sheet—from terms related to economics to terms related to control. It strives to give a balanced view of the particular terms along with the strategies to getting to a fair deal. In addition to examining the nuts and bolts of the term sheet, Venture Deals, Second Edition also introduces you to the various participants in the process and discusses how fundraising works.
- Fully updated to reflect the intricacies of startups and entrepreneurship in today's dynamic economic environment
- Offers valuable insights into venture capital deal structure and strategies
- Brings a level of transparency to a process that is rarely well understood
Whether you're an experienced or aspiring entrepreneur, venture capitalist, or lawyer who partakes in these particular types of deals, you will benefit from the insights found throughout this new book.
- File Size: 478 KB
- Print Length: 273 pages
- Page Numbers Source ISBN: 1118443616
- Publisher: Wiley; 2 edition (December 12, 2012)
- Sold by: Amazon Digital Services, Inc.
- Language: English
- ASIN: B00AO2PWOI
- Text-to-Speech: Enabled
X-Ray:
- Lending: Enabled
- Amazon Best Sellers Rank: #16,872 Paid in Kindle Store (See Top 100 Paid in Kindle Store)
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in Kindle Store > Kindle eBooks > Business & Money > Entrepreneurship & Small Business > Starting a Business - #19
in Kindle Store > Kindle eBooks > Business & Money > Finance - #30
in Books > Business & Money > Small Business & Entrepreneurship > New Business Enterprises
I am a 2x entrepreneur who has raised over $20M in VC funding, so when i say this is a must-read IF you want to raise money I am speaking out of experience.
I wish I had this book in 2007, when I was trying to raise money. Terms like "double ratchet anti-dilution", "preferred", "participation", "vesting pool' or "liquidation events" were all terms that I was completely ignorant about. worst yet, our attorneys had to explain these to me, and at $750/hr it was a costly lesson. $30 for this book would have saved me $1,000's in legal fees, and hundreds of thousands in earnings.
Well, but now that i have read this book my long-held view about VCs is further perpetuated.
VCs are in the business to accomplish two things: (1) preserve their LP capital (i.e. don't lose money). and (2) earn outsized earning to makeup for all the duds (i.e. take everything you can).
Note, "make the entrepreneur lots of money" is not on the list. This is something that the authors and most VCs, including Mark Suster on his talks/blogs will confirm this. As an entrepreneur you end up working for the VCs and will get wealthy if your company ends up being one of the 0.01% of VC companies that have very successful exits. If your company does just "great", or "OK" then expect to earn nothing from the exit - while the VC will walkaway with 2x to 5x of the investment.
This is not a bad thing if you expect to be in the 0.01%, but as that number indicates - it's not likely.
so lets look at the main two things covered in this book that describe how VCs make money:
VCs get their money from pension funds, alternative asset funds, government organizations, and basically any large sources of capital that is looking for risk-adjusted better-than-average returns.
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