Venture Capital


Eboys : The First Inside Account of Venture Capitalists at Work
by Randall E. Stross

If you want to understand the 1990s, you have to understand venture capitalists. These are the people who listen to business pitches by the score, the financial-world equivalent of miners turning over tons of earth in search of precious metal. They're looking for the next Amazon.com, the next Yahoo!, the next eBay. Randall E. Stross, who teaches business history at San José State University, just happened to be there when a firm called Benchmark Capital discovered eBay. eBoys tells the story of how a group of not-quite-middle-aged men came to make an investment that returned a Silicon Valley record of 100,000 percent.

Stross is a gifted storyteller who weaves the personal histories of the Benchmark partners with stories of how the firm came to back such companies as Priceline.com and Webvan. We meet guys who weren't born to privilege, men who took unconventional routes into the venture capital business. Probably the most intriguing is Dave Beirne, a hyperaggressive executive recruiter who went into the business after realizing venture capitalists are the ones who really call the shots at high-tech start-ups. We also see the problems Silicon Valley guys have when they try to dot-com the bricks-and-mortar world. The short tale of an aborted partnership between Benchmark and Toys 'R' Us illustrates why the old economy is so mystified by the new.

Anyone interested in how business works should find something of interest in eBoys. From the organizational structure and corporate culture of Benchmark to the histories and personalities of its partners to its adventures in the world of Internet start-ups, it's a digital snapshot that reveals how successful businesses look, think, and mine gold in today's economy.

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Zero Gravity: Riding Venture Capital from High-Tech Start-up to Breakout IPO
by Steve Harmon, John Doerr (Introduction)

In the world of venture capital, investors look for deals that will return 10 to 20 times their original investment, although sometimes they do much, much better. Venture capitalists are looking for many things: not only a company that can dominate a business category, but one that will eventually be worth at least a half-billion dollars. And even if an entrepreneur can present a business plan that looks as if it can deliver a company of that size and prominence, the VC has to have confidence in that businessperson before time and money get invested in the startup.

That's a lot to expect from a new business, but there's more. According to Steve Harmon, an entrepreneur has few chances to get a VC's attention, so first impressions might mean the difference between millions invested and complete rejection. Harmon is an Internet-investment analyst who knows the VC world well, and Zero Gravity is his guide for people with new ideas: which VCs to approach (different firms specialize in different types of business startups, and each partner within those firms may have his or her own areas of specialization), how to approach them and get them excited about your idea, and what mistakes to avoid (hint: If you've already granted a chunk of the company to your doctor and your accountant in exchange for dribs and drabs of prestartup money, VC interest will be minimal).

This is about as complete a manual as an entry-level entrepreneur could hope for. Harmon not only covers the basics of searching for capital, he offers inspirational stories of the true VC successes (Amazon.com, Netscape, @Home) and includes interviews with the VCs themselves, letting them say in their own words how they pick the winners, and how you can become one of them.

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Fundamentals of Venture Capital
by Joseph W. Bartlett

Written in highly readable layman's language, Fundamentals of Venture Capital is a concise introduction to the key issues facing both investors and entrepreneurs as they embark on the journey of turning a good idea into a profitable reality.

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Done Deals: Venture Capitalists Tell Their Stories
by Udayan Gupta (Editor)

"Until a few years ago," notes journalist-consultant Udayan Gupta, "venture capitalists were hardly on anyone's radar screen." That's not the case these days, as financiers who used to work behind the scenes now regularly set markets afire with their public support of high-profile technology and Internet stocks. In Done Deals, Gupta allows 35 of the brightest stars in what has become a $30-billion-a-year business to tell their own stories in their own words. We get to see exactly what they were thinking when they backed such endeavors as Intel, eBay, Excite, Genentech, and 3Com. Gupta's intention is to demonstrate how the industry has changed over the past half-century and how it differs today among its various forms. He achieves this beautifully by dividing the first-person accounts into thematically attuned sections that focus on dealmakers of the future (such as Mitch Kapor of Accel Partners), early pioneers (including the late Benno Schmidt of J.H. Whitney & Co.), West Coast veterans (such as Don Valentine of Sequoia Capital), past and present East Coast practitioners (like Charles Waite of Greylock Management), and visionaries (including John Doerr of Kleiner Perkins Caufield & Byers). Some of the stories are more detailed than others, but taken together, they provide a well-rounded view that will interest anyone who must deal with this often intertwined yet still individual world.

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Confessions of a Venture Capitalist: Inside the High-Stakes World of Start-up Financing
by Ruthann Quindlen

Many people would love to pick the brains of a venture capitalist to uncover exactly what gets their juices (and checks) flowing. Some books promise such advice from the recipient's point of view, but rarely is the story told from a financier's. As its title promises, however, Confessions of a Venture Capitalist does just that. Ruthann Quindlen, a one-time investment banker now with Silicon Valley's Institutional Venture Partners, lays it on the line in this revealing glimpse inside her world. Short, humorous chapters make it an easy read--a fact that might lead some to suspect that specifics are lacking. But details are there, as evidenced in a section called "Less Is More, or Subtraction by Addition." "Rather than coming to us with just themselves and their bright idea, they believe we want to see business types as part of the initial management team," she writes. "Often, we like the technology entrepreneur and the plan, but end up in the awkward position of not being able to back the business types.... Focus instead on your idea and why customers will love it and how you and only you can make it happen." Such suggestions should prove useful to entrepreneurs, and anyone else interested in today's venture-capital economy.

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2000 Guide to Entrepreneurial Venture Financing
by Inc. Capital Growth

This guide, financing manual and investor directory all in one is everything you need to get started in developing a growth business and finding the contacts and the assistance to do so. It provides useful information on topics ranging from "Business Incubation" to "Cashing Out." And, it not only provides you with expert advice and opinions, but it also provides a list of venture investors who have recently invested their money in companies in the Southern and Middle Atlantic regions.

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Angel Investing: Matching Startup Funds with Startup Companies -- A Guide for Entrepreneurs, Individual Investors, and Venture Capitalists
by Robert J. Robinson, Mark Van Osnabrugge

According to Robert J. Robinson and Mark van Osnabrugge, so-called business angels--those generally unheralded private investors who usually specialize in high-growth fields and often involve themselves directly in the endeavors they fund--now provide 30 to 40 times more financing each year than their more famous counterparts, venture capitalists. In Angel Investing, Robinson and Van Osnabrugge use personal interviews, anecdotal evidence, and more than 300 research studies to show exactly who these financiers are, how they operate, and where they can be found. Robinson, an international management consultant, and Van Osnabrugge, an associate professor at Harvard Business School, also compare various financing options, explain precisely how angels and venture capitalists function differently, describe proven ways to attract them, and provide relevant resources. "The vast size and power of the business angel market in the United States is not well understood but is of incredible importance to our entrepreneurial sector and, indirectly, to maintaining our economic growth and standard of living," the authors write. They pack their book accordingly with valuable information for serious fund-seekers who have exhausted the traditional three F's (founder, family, and friends), as well as those who are considering entrepreneurial investments of their own.

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Angel Financing: How to Find and Invest in Private Equity
by Gerald A. Benjamin, Joel Margulis

Capital is the single most important factor to getting your venture off the ground, but finding it can be a challenge, particularly if you're running out of funding options. Suppose your venture is too small for institutional players. What do you do once you've exhausted your personal financial resources? Where do you go after banks, the leasing companies, the venture capital firms, have turned you down? What you need is an "angel"-a private investor with high net worth. Angel Financing-the only book of its kind-provides you with a road map to this valuable, little known, source of capital financing.

Explains the structure of the direct private capital market

Covers everything from the valuation process to writing an investor-oriented business plan

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Directory of Venture Capital (2nd Edition)
by Kate Lister, Thomas D. Harnish, Tom Harnish

Covers more than 600 venture capital firms with their addresses, phone numbers, types and sizes of investments, geographic preference, etc.

Have a great business idea, but need the capital to get it off the ground? Find the right investors with the Directory of Venture Capital, Second Edition. Whether your venture is biotechnology, Web-based and information technology, healthcare, industrial, or consumer goods, the Directory of Venture Capital, Second Edition is an essential guide to locating the appropriate funding for your emerging technology or start-up.

The Directory of Venture Capital, Second Edition is a comprehensive, easy-to-use resource for both new and experienced entrepreneurs. Its authors-veteran business financier Kate Lister and seasoned entrepreneur Tom Harnish-have compiled a wealth of information on what you'll need to know, from researching venture capitalists to selecting the right lawyer to closing the deal. Inside you'll also find:A database of over 600 actively investing venture firms/funding sources, listed both by state and by areas of investing interest (also available in electronic format)You won't waste time and money sending proposals to firms that are no longer investingSamples of standard agreements and contracts: a term sheet, stock purchase agreement, and articles of incorporation

In the Directory of Venture Capital, Second Edition, you'll learn what venture companies look for in a business partnership; how to best approach a company for funds; what level of returns venture capitalists expect; and what investments they prefer in terms of geography, size of company, portfolio, stage of funding, and personal interests. You'll also get invaluable advice on how to determine if your venture is a strong enough candidate for investment from a venture firm.

With venture capitalization at an all-time peak, you can't afford to miss out on the opportunities that await your business vision. And with the Directory of Venture Capital, Second Edition, you have a solid partner to help you and your business dreams take off.

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Inside the Minds : Venture Capitalists - Inside the High Stakes and Fast Moving World of Venture Capital
by Ebranded Books.Com Staff, eBrandedBooks.com, Jon Pirone

Inside the Minds: Venture Capitalists includes interviews with leading venture capitalists from companies such as Softbank, CMGI, Bertelsmann Ventures, Internet Capital Group, New Enterprise Associates, divine interVentures, Sequoia Capital and other leading firms. These highly acclaimed VCs take us where they feel the future of the Internet is going and how everyone can take advantage of it on some level. Also, learn how some of the best minds behind the Internet revolution value companies, assess business models, and identify opportunities in the marketplace. And last but not least, enjoy some of the incredible stories behind a handful of the most successful investments of all time. An unprecedented look inside the high stakes and fast pace world of venture capital makes for exciting and highly interesting reading for industry executives, entrepreneurs,investors, or anyone with a general interest in the amazing wealth being generated by the Internet revolution. Inside the Minds: Venture Capitalists is the first book in the Inside the Minds series by eBrandedBooks.com,featuring interviews with the leading minds of the Internet and technology revolution. Other books include Inside the Minds: Internet CFOs, Inside the Minds: Internet Marketing, Inside the Minds: Internet BizDev, Inside the Minds: Internet Lawyers, and Inside the Minds: Chief Technology Officers.

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The Venture Capital Cycle
by Paul A. Gompers, Josh Lerner

In the last 25 years, the venture-capital industry has grown from a less than $1 billion to an over $60 billion business--growth that has far surpassed any other class of investment products. Today, the industry consists of several thousand professionals working at about 500 funds concentrated in California, Massachusetts, and a handful of other states. Despite the industry's size, there are many misconceptions about the nature and role of venture capitalists; their trade remains shrouded in mystery.

Paul Gompers and Josh Lerner's Venture Capital Cycle is an illuminating academic examination of the form and function of venture-capital funds. Gompers and Lerner are Harvard Business School professors who have researched extensive original data to analyze venture-capital fundraising, investing, and exiting methods. Beginning with a historical overview of entrepreneurial finance, the book examines how venture partnerships are structured, how venture capitalists are compensated, the staging of investments in operating companies, and the relative performance of venture-capital-backed offerings. There's also an interesting comparison of corporate venture organizations, such as Xerox PARC, with those of independent and other venture groups. Venture capitalists use industry knowledge and monitoring skills to finance projects with significant uncertainty, typically concentrating investments in early-stage companies and high-tech industries. Large information gaps between entrepreneurs and investors create conflicted interests, and the book looks at some of the novel checks and balances most often employed.

One of the book's themes is that the whole venture-capital process is best understood as a cycle: from the raising of a fund; to investing in, monitoring, and adding value to firms; then exiting deals; returning capital to investors; and finally renewing itself by raising additional funds. The need to exit an investment successfully shapes all aspects of the venture-capital cycle, from the ability to raise capital to the types of investments made. Another theme is that because venture funds must make long-term illiquid investments, they need to secure funds from their investors for periods of 10 years or more. The supply of venture capital consequently cannot adjust quickly to changes in the investment environment.

The authors conclude that increasing familiarity with the venture-capital process has made the long-term prospects for venture investment more attractive than ever. Entrepreneurs, venture capitalists, and investors will find this book a scholarly, well-documented examination of the industry.

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