Raising Venture Capital

From early beginnings in the aftermath of World War II, the venture capital industry has evolved from an ad hoc collection of pioneering investors into a sophisticated, fast paced and highly specialised industry. During this period, venture capitalists have provided the fuel for entrepreneurs to create companies that have changed the face of the planet. The question of how the venture capital industry works, however, remains a mystery for many novice entrepreneurs, and the dynamics of venture capital deals are challenging for those without first-hand experience. This book examines the fundamentals that drive the VC industry, explains how these fundamentals translate into investments, and culminates in a blow-by-blow account of how venture capital deals are negotiated and structured by examining a real venture capital ‘term sheet’ in detail.

• Raising Venture Capital provides practical insights into positioning a business to raise venture capital finance, and how to navigate the investment process, based on a mix of real life deal experience and sound academic theory and research.
• The book reveals how the delicate relationship between entrepreneurs and venture capitalists is managed before, during and after the deal, creating the ideal platform on which to build a successful business.
• By understanding the principles that drive venture capital deals this book explains how entrepreneurs and venture capitalists can structure a win-win deal creating value for both.
• A detailed, clause-by-clause examination of a venture capital term sheet provides practical solutions to the typical ‘sticking points’ in a venture capital deal, provides insight into what can and cannot be negotiated, and minimises the risk of potentially successful deals being derailed.
• The book is intended for entrepreneurs and venture capitalists actively engaged in doing deals, investment bankers, lawyers and consultants who work with high growth venture-backed businesses and MBA students and policy makers alike who wish to understand how the venture capital business operates.