Venture capital handbook : an entrepreneur's guide to raising venture capital / David Gladstone, Laura Gladstone.

Format:

Book

Author/Creator:

Gladstone, David.

Contributor:

Gladstone, Laura.

Language:

English

Subjects (All):

Venture capital--United States--Handbooks, manuals, etc.

Venture capital.

United States.

Genre:

Handbooks and manuals.

Physical Description:

xxi, 424 pages : illustrations ; 24 cm

Edition:

Updated and revised edition.

Place of Publication:

London : New York : Financial Times/Prentice Hall, 2002.

Contents:

Chapter 1 Anyone Can Raise Venture Capital 1

I'll Back You 3

What Is Venture Capital? 5

When Did Venture Capital Begin? 8

Types of Venture Capital 9

Where Can You Find Venture Capital? 13

How Do Venture Capital Companies Invest in Businesses? 14

What Types of Business Do VCs Back? 15

Which Industries Do Venture Capitalists Prefer? 18

What Types of Products or Services Do Venture Capitalists Prefer? 20

How Much Venture Capital Is Available? 22

Opportunities Available for Entrepreneurs 22

Can You Raise Venture Capital? 23

How Much Money Should You Seek? 24

What Type of Funds Are You Seeking? 26

How Will the Venture Capitalist Be Involved? 27

How to Select a Venture Capital Company 29

Should You Phone the Venture Firm? 30

Other Questions for the Venture Capitalist 34

How Long Does It Take to Get the Money? 35

Myths About Venture Capital 37

Chapter 2 Summary Presentation 43

What Does a Summary Look Like? 44

Why Is the Venture Capitalist Interested? 46

How to Complete a Summary 47

Type of Business 48

What Kind of Cover Letter Is Needed? 51

Strategic Use of Summary 53

Another Kind of Venture Capital 54

Perspective for Your Summary 57

What Do Venture Capitalists Think About Summaries? 58

Confidentiality of Your Great Idea 59

Chapter 3 The Proposal 61

Should You Use a Broker or Consultant? 63

Most Important Quality of a Business Proposal 64

Do You Really Need All of This? 90

What Is the Venture Capitalist Really Looking For? 91

How to Package Your Proposal 93

How Many Venture Capitalists Should Be Contacted? 96

Syndications 98

Chapter 4 A Thousand Questions 101

What Are the Major Questions? 102

Business Proposal Questions 105

Other Information the Venture Capitalist Will Need 136

Will the Venture Capitalist Ask All These Questions? 140

Chapter 5 Meetings and Negotiations 141

The Office of the Venture Capitalist 142

What Do Venture Capitalists Look Like? 142

How Long Will the Meeting Last? 143

What Is the Object of the Meeting? 144

What Happens in a Typical Meeting With a Venture Capitalist? 145

What Type of Presentation Should Be Made? 146

What is The Primary Characteristic The Venture Capitalist is Seeking in an Entrepreneur? 147

What Are the Other Characteristics of the Entrepreneur? 148

Know Your Stuff 152

Things You Do Not Say to the Venture Capitalist 153

Things Not to Do in the Meeting 156

How to Negotiate in the First or Subsequent Meetings 159

How to Cut the Deal 161

Ownership by the Venture Capitalist 162

How Do Venture Capitalists Price Investments? 163

Downside Risk 169

After the Negotiations 175

Chapter 6 The Commitment Letter 177

Commitment Letters 179

What Is In the Commitment Letter? 180

Comments on the Commitment Letter 200

What Is An Investment Memorandum or Term Sheet? 201

Consulting Agreement 206

Nonlegal Commitment Letter 208

Arguing Over Minor Points 209

Items You Should Not Sign in the Commitment Letter 209

Chapter 7 Due Diligence 211

What to Expect From a Visit to Your Business 212

How to Give a Good Cook's Tour 212

Investigating the Individuals 219

Venture Capitalists Are Paranoid 220

Other Aspects of the Background Check 222

Do They Have a Test for Entrepreneurs? 223

Experience Is the Watchword 224

Investigating the Entrepreneur and the Team 226

Questions for Other People in the Organization 227

Investigating the Business, the Product, and the Industry 228

When the Venture Firm Finds Something Wrong 237

Questions for the Venture Capitalist 238

Background Information on the Venture Capital Company 240

Timing Questions for the Venture Capitalist 242

Chapter 8 The Closing 243

First Closing: Legal Documents For Loans With Options 244

Simple Is Good 254

Unethical Venture Capitalist 254

Second Closing: Legal Documents for the Purchase of Preferred Stock 255

Lawyers as Businesspeople 259

Experienced Lawyers Are Best 260

Legal Fees Keep Going Up 260

How Lawyers Run Up Your Legal Bill 262

Syndications and Lawyers 265

The Closing: A Moment of Truth 266

Closing Fees That You Pay 266

What to Remember About Lawyers 267

Chapter 9 Working Together 271

Major Policy Decisions Should Be Joint Ones 273

Monthly Financials 274

Hold Board or Investor Meetings at Least Monthly 277

Other Discussion Items for the Venture Capitalist 278

You Are Building Confidence 280

Warning Signals to the Venture Capitalist 280

Why Entrepreneurs Have Financial Problems 284

Why Entrepreneurs Have People Problems 286

The Protean Entrepreneur 288

When You Have Problems 290

Analysis of the Situation 291

What the Venture Capitalist Will Do 292

Ten Things Not to Say 296

Secret of a Successful Relationship 302

Venture Capitalist as Board Member 304

Degree of Involvement by the Venture Capitalist 305

Chapter 10 The Exit 309

It's All a Matter of Price 311

First Method: Going Public 311

Second Method: Purchase by the Company or Entrepreneur 317

Purchase by Employee's Stock Ownership Trust 318

Exit by Puts and Calls 319

Third Method: Sale of the Company to Another Company 324

Fourth Method: Finding a New Investor 331

Fifth Method: Liquidation of the Company 333

Negotiating with the Venture Capitalist 335

Chapter 11 Using Brokers 337

Qualities to Look for in a Broker 344

Agreement with the Broker 346

Some Tips on Dealing with Brokers 349

Amount and Type of Fees 349

Who Should Present the Plan to the Venture Capitalist? 351

Chapter 12 Advice From Us to You 353

Keeping Up With Venture Capitalists 354

Selecting a Venture Firm 355

Venture Capital Process 356

Venture Capitalists as Human Beings 357

Problem Companies Looking for Financing 357

Financing for Your Job or Your Ego 358

Too Much Information 359

Do You Understand Credibility? 360

Ten Commandments for an Entrepreneur 360.

Notes:

Includes index.

ISBN:

0130654930

OCLC:

249323989