Building Value

Learn the venture capital process and industry from the inside-out In Building Value: The Business of Venture Capital, renowned professor and venture capital (VC) firm partner Simon Barnes delivers an easy-to-read guide to the often-mysterious world of venture capital and how entrepreneurs and venture capitalists should engage with each other to arrive at constructive start-up investment deals. In the book, you'll discover why successful entrepreneurial finance is more about behaviour than it is about numbers. You'll learn why VC is a people business, first and foremost, and why effectively aligning the interests of funders and entrepreneurs is so important. You'll also find: Insights drawn from the author's 25 years' experience backing and building start-ups in the UK, EU, and US A holistic view of the venture capital industry that focuses on building value A comprehensive discussion of the entire VC process, from negotiating the deal to helping build a successful venture-backed business Perfect for students in MBA programs, Building Value is also a can't-miss resource for venture capitalists, entrepreneurs raising capital for the first time, professional fund managers, and professionals and entrepreneurs participating in incubator or accelerator programmes.

About the Author vii Acknowledgements ix Chapter 1 Why Do Start-ups Raise Capital? 1 Chapter 2 Equity and the Art of Milestone-Based Financing 13 Chapter 3 A History Lesson 43 Chapter 4 Business Models 59 Chapter 5 A Day in the Life 85 Chapter 6 Valuation 111 Chapter 7 Inside the Deal 149 Chapter 8 Raising the Next Round 201 Chapter 9 Towards the Exit 245 Chapter 10 Building Value: The Business of Venture Capital 281 Case Study Solutions 293