The business of venture capital: insights from leading practitioners on the art of raising a fund, deal structuring, value creation, and exit strategies

The definitive guide demystifying the venture capital business The Business of Venture Capital covers the entire spectrum of a venture capital business, from raising venture funds to structuring investments, value creation as board member and assessing exit pathways. Author Mahendra Ramsinghani covers the distinct aspects of the venture capital fund raising and investment process with insights and perspectives from leading experts. Interviewees include Limited Partners (LPs) such as Credit Suisse, Grove Street Advisors and General Partners(GPs) from Foundry Group, Spark Capital, Benchmark Capital, Norwest Venture Partners, Shasta Ventures and Bessemer Venture Partners. If youre curious aboutventure capital businesses, youve found the only book that covers it all. Thefirst book to address the full investment cycle of the venture capital business Demystifies the key aspects of the business - raising venture funds, fund-level due diligence and fund terms, structuring investments, value creation, and exits Foreword by Mark Heesen, President, National Venture Capital Association Benefit from the experiences of the best-in-class practitioners, who have made investments in leading companies like Zynga, Twitter Describes how venturecapital is an art as well as a science In-depth and thorough, The Business ofVenture Capital is the one book that includes insights, tools and real world examples every practitioner can benefit from. INDICE: Foreword xiii Preface xvii Acknowledgments xxix PART ONE: Raising the Venture Fund 1 CHAPTER 1: The Universe of Limited Partners 5 An Overview of Alternative Assets 6 Sources of Capital 10 Comparison of Limited Partnerships 29 Summary 29 CHAPTER 2: Fund Due Diligence 33 Sourcing and First Screens 34Fund Due Diligence: How LPs Evaluate Venture Firms 36 Evaluating the Fund Managers 39 Emerging Managers: A Promise of the Future 53 The Quest for the Elusive Top Quartile Managers 61 Fund Investment Strategy 67 Market Timing 77 Fund Size and Portfolio Construction vis-a-vis Fund Strategy 80 Fit within the LP'sCurrent Portfolio 85 Why LPs Terminate Existing Relationships 87 Summary 87 CHAPTER 3: Terms of Investment: The Limited Partnership Agreement 89 Sample Terms in a Fund's PPM 90 Other LP-GP Terms 105 What Matters Most 110 Summary 110 CHAPTER 4: Fund Structure, Governance, and Operations 113 Key Constituents of the GP Team 114 Finding Suitable Partners 125 Fund Governance and Economics 126 Governance of Management Services GP LLC 127 Summary 134 CHAPTER 5: Getting to the First Close 135 Build Your Target List of Investors 137 Fund Marketing Materials 141 Presentation Slides 142 Making the Presentation Pitch: Drink Your Own Kool-Aid 144 Attracting the Lead Investor: Your 'Nut' 144 Communicate, Create, and Maintain Momentum 146 Offering Sweeteners to Attract LPs: A Double-Edged Sword 147 The Role of Placement Agents in Fund-Raising 147 Caveat Emptor151 Summary 152 PART TWO: The Investment Process 153 CHAPTER 6: The Art of Sourcing Investment Opportunities 155 The Best Source: The Network 157 The Fountainheads of Academia and Research 160 Corporate Research 161 Venture Events and Trade Conferences 163 Venture Farming 165 Angels and Pledge Funds 167 Business Plan Competitions 171 Cold Calling 172 You Win Some, You Miss Some 172 Summary 174 CHAPTER 7: The Art of Conducting Due Diligence 177 What Is Important: Jockey, Horse, or Markets? 178 Attributes of the Jockey 179 Serial Entrepreneurs versus First-Time Entrepreneurs 183 What about Charisma? 184 Management Team Due Diligence: How to Assess the Jockey 185 The Importance of Conducting Background Investigations 192 Assessing the Market 194 Evaluating the Idea or Product 199 Reviewing the Business Model 201 Considering the Financial Projections 202 Weighing the Importance of Business Plans 203 The Due Diligence Checklist 203 Summary 206 CHAPTER 8: The Basics of Corporations, Ownership, and Control 209 Authorized Shares and Issued Shares 211 Shareholder Rights 217 Role of the Board 217 Summary 218 CHAPTER 9: Valuation Methods and Other Voodoo Arts 219 The Drivers of Valuation 220 The Simplified Form of the VC Method of Valuation 221 Comparable Valuations of Similar Investments (Comps) 224 Discounted Cash Flow Method 226 Summary 228 CHAPTER 10: S

• ISBN: 978-0-470-87444-8
• Editorial: John Wiley & Sons
• Encuadernacion: Cartoné
• Páginas: 432
• Fecha Publicación: 02/11/2011
• Nº Volúmenes: 1
• Idioma: Inglés