Building Wealth through Venture Capital

Venture capital demystified, for both investors and entrepreneurs Building Wealth Through Venture Capital is a practical how-to guide for both sides of the table—investors and the entrepreneurs they fund. This expert author duo combines renowned venture capital experience along with the perspective of a traditional corporate executive and investor sold on this asset class more recently to flesh out wealth-building opportunities for both investors and entrepreneurs. Very simply, this book will guide investors in learning how to succeed at making money in venture capital investment, and it will help entrepreneurs increase their odds of success at attracting venture capital funds and then employing those funds toward a lucrative conclusion. The authors explain why venture capital will remain the asset class best-positioned to capitalize on technological innovation in the coming years. They go on to demystify the market for those seeking guidance on reaping its rich returns. Learn what it takes to succeed as an investor or entrepreneur, and gain the wisdom of experience as the authors explain key factors that determine outcomes. Through a relaxed, down-to-earth narrative, the authors share their own experiences as well as those of their nationally-recognized colleagues. Illustrative anecdotes and personal interviews expand upon important points, and case studies demonstrate the practical effect of critical concepts and actions. World-class professional expertise and personal experience come together to help you: Understand the nature of both venture capitalists and successful entrepreneurs Develop wealth-building capabilities in investing in or attracting venture capital Learn how entrepreneurs and investors can work together toward a lucrative conclusion Examine the ways in which recent financial regulatory developments and technological advances already in place are democratizing access to venture capital, enabling unprecedented expansion of venture capital opportunities As the field expands through these regulatory and technological developments, savvy participants will have unprecedented opportunity to benefit. Building Wealth Through Venture Capital explains what you need to know, and shows you how to navigate this arcane but lucrative asset class.

Preface vii Introduction Part I Understanding the Major Players 1 Chapter 1 The Venture Capitalist: Funder of Dreams 3 Chapter 2 The Entrepreneur: His Mind and His “Cultivation” 7 Part II For the Investor: A Guide to Realizing Big Returns 23 Chapter 3 Why Should You Invest in Venture Capital? 25 Chapter 4 How to Find the Right Venture Capital Firm 35 Chapter 5 Venture Capital Investment versus “Buffett’s Real Rules” of Investment 51 Chapter 6 Avoid the Seduction of Unicorns: Get in Early 63 Chapter 7 Finding the Highest Quality Investments at the Right Price 73 Part III for the Entrepreneur: a Guide to the Money Search and All That Follows 87 Chapter 8 The Mating Dance: Prospecting for a Venture Capital Investor 89 Chapter 9 The Final Exam: Due Diligence 101 Chapter 10 Finding Your Deal-Doing Lawyer 115 Chapter 11 Financing Has Arrived and “You’re Married” Now What? 123 Chapter 12 The Last Dance: A Successful Exit 133 Chapter 13 Interview with a Successful Entrepreneur 149 Part IV Looking Ahead: What’s to Come 169 Chapter 14 The Foreseeable Future 171 Acknowledgments 187 About the Authors 189 Index 191