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Building Wealth through Venture Capital: A Practical Guide for Investors and the Entrepreneurs They Fund



Building Wealth through Venture Capital: A Practical Guide for Investors and the Entrepreneurs They Fund

Leonard A. Batterson, Kenneth M. Freeman

ISBN: 978-1-119-40936-6 June 2017 224 Pages



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 xi

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