The Way of the VC

Venture Capital funds are the fastest growing sector of the financial industry, and possibly the least understood. In this book, the author provides a primer on what some of the world's best venture capitalists have in common. How do the world's top venture capitalists consistently obtain supernormal returns? How do they add value to entrepreneurs they have backed? Why is a top venture capitalist like a skilled chef? How did Lip Bu Tan, when he was Chairman of Walden, manage to invest in Creative Technology, despite the CEO's aversion for VCs? How did Nam Ho, Founder and Managing Partner of Altos Venture, turn an introduction by a Stanford Business School professor into a venture capital firm managing a quarter billion dollars of capital? How does Bing Gordon, Partner at Kleiner Perkins Caufield & Byers and author of the business plan that resulted in KPCB's investment in Electronic Arts, time exits properly? Why did Soo Boon Koh, Managing Director of IGlobe Ventures, back a GPS company which was filing for Chapter 11, in the post 9-11 market? The Way of the VC: Having Top Venture Capitalists on Your Board is essential reading for venture capital practitioners, including partners, principals, analysts, consultants and limited partners--both institutional and private. It is also useful to students of finance who want a better understanding of what goes on in the venture capital world.

Acknowledgments ix Foreword xi Introduction xiii Chapter 1 The Call to Adventure 1 Chapter 2 Finding the Right Partner at the Right Time: Focus on the Forest, Not the Trees 33 Chapter 3 Transitions in Partnership: A Bridge Over Troubled Waters 73 Chapter 4 Growing Together 115 Chapter 5 Smart Money: The Top VC on Your Board 139 Chapter 6 If You Need to Woo a Turkey Buzzard 167 Chapter 7 The Partnership Becomes Wildly Successful 221 Chapter 8 Conclusion 243 Appendix 251 Index 271