The Business of Venture Capital: The Art of Raising a Fund, Structuring Investments, Portfolio Management, and Exits (Wiley Finance)

The Business of Venture Capital: The Art of Raising a Fund, Structuring Investments, Portfolio Management, and Exits (Wiley Finance) Description

The Business of Venture Capital has been recognised as the final, most thorough book on the topic ever since it was first published. This industry standard text, now in its third edition, describes the many facets of the venture capital industry, from raising venture funds to structuring investments to generating reliable returns to assessing exit strategies. Author and venture capitalist Mahendra Ramsinghani offers best practises from professionals working on the front lines of this industry. He has invested in startups and venture funds for over ten years.

Anyone looking to build a venture fund or pursue a career in venture capital, as well as practising venture capitalists, angel investors or devils alike, limited partners, attorneys, start-up entrepreneurs, and MBA students, should read The Business of Venture Capital, Third Edition.

Here’s what you will learn in this course:

Foreword xiii

Preface xv

Acknowledgments xxvii

Part One The Making of a VC

• 1 The Business of Cash and Carry 3
• 2 Why Choose a Career in VC 11
• 3 Attributes of Successful VCs 15
• 4 Welcome to the Land of Ad-Venture 21
• 5 Developing Your Investment Career 41
• 6 A Business Where Enemies Accumulate 57
• 7 Generational Transfer and Succession 63

Part Two Raising Your Venture Fund

• 8 LP Universe 73
• 9 LPs of Choice: Fund of Funds 89
• 10 How LPs Conduct Fund Due Diligence 95
• 11 Defining Your Fund’s Investment Strategy 99
• 12 Investment Team Diligence 119
• 13 Fund Size and Portfolio Construction 129
• 14 Performance Analysis 137
• 15 Terms of Fund Investment 155
• 16 The Venture Firm’s Ethos, Culture, and Values 173
• 17 Raising Your First Fund 193
• 18 The Fundraising Roadshow 205
• 19 Why LPs Seek First-Time Funds 221
• 20 Sourcing Investment Opportunities 229

Part Three Building Your Portfolio

• 21 Due Diligence Cheat Sheet 255
• 22 Diligence 259
• 23 Management Team Diligence: Assessing the Intangible 269
• 24 Market, Product, and Business Model Analysis 293
• 25 Terms and Conditions Apply 303
• 26 Structure of the Term Sheet 309
• 27 Buy Low, Sell High 317
• 28 The Closing Process 353

Part Four The Art of Value Creation

• 29 Serving on Boards 357
• 30 Board Culture and Orientation 367
• 31 Let Me Know How I Can Be Helpful: Value Creation 377
• 32 Challenges in the Boardroom 391

Part Five Exits: Liquidity Events and Champagne

• 33 Exit Strategies 407
• 34 Acquisitions 417
• 35 Initial Public Offering 435
• 36 Secondary Sales 449

Notes 451

Index 485