Home > Store

Venture Capital Handbook: An Entrepreneur's Guide to Raising Venture Capital, Revised and Updated Edition

Register your product to gain access to bonus material or receive a coupon.

Venture Capital Handbook: An Entrepreneur's Guide to Raising Venture Capital, Revised and Updated Edition

Book

  • Sorry, this book is no longer in print.
Not for Sale

Description

  • Copyright 2002
  • Dimensions: 6" x 9-1/8"
  • Pages: 448
  • Edition: 1st
  • Book
  • ISBN-10: 0-13-065493-0
  • ISBN-13: 978-0-13-065493-9

In Venture Capital Handbook: Revised and Updated Edition, leading venture capitalist David Gladstone and Laura Gladstone walk you step-by-step through the entire VC funding process, showing exactly how to get funded fast -- without the trauma. This end-to-end update of the classic VC guide covers the latest techniques, tax rules -- and, above all, marketplace realities.

Sample Content

Online Sample Chapter

Creating a Proposal for Raising Venture Capital

Table of Contents



Introduction.


Acknowledgments.


1. Anyone Can Raise Ventura Capital.

I'll Back You. What Is Venture Capital? When Did Venture Capital Begin? Types of Venture Capital. Where Can You Find Venture Capital? How Do Venture Capital Companies. What Types of Business Do VCs Back? Which Industries Do Venture Capitalists Prefer? What Types of Products or Services Do Venture Capitalists Prefer? How Much Venture Capital Is Available? Opportunities Available for Entrepreneurs. Can You Raise Venture Capital? How Much Money Should You Seek? What Type of Funds Are You Seeking? How Will the Venture Capitalist Be Involved? How to Select a Venture Capital Company. Should You Phone the Venture Firm? Other Questions for the Venture Capitalist. How Long Does It Take to Get the Money? Myths About Venture Capital.



2. Summary Presentation.

What Does a Summary Look Like? Why Is the Venture Capitalist Interested? How to Complete a Summary. Type of Business. What Kind of Cover Letter Is Needed? Strategic Use of Summary. Another Kind of Venture Capital. Perspective for Your Summary. What Do Venture Capitalists Think About Summaries? Confidentiality of Your Great Idea. Objective.



3. The Proposal.

Should You Use a Broker or Consultant? Most Important Quality of a Business Proposal. Do You Really Need All of This? What Is the Venture Capitalist Really Looking For? How to Package Your Proposal. How Many Venture Capitalists Should Be Contacted? Syndication's. Objective.



4. A Thousand Questions.

What Are the Major Questions? Business Proposal Questions. Other Information the Venture Capitalist Will Need. Will the Venture Capitalist Ask All These Questions? Objective.



5. Meetings and Negotiations.

The Office of the Venture Capitalist. What Do Venture Capitalists Look Like? How Long Will the Meeting Last? What Is the Object of the Meeting? What Happens in a Typical Meeting with a Venture Capitalist? What Type of Presentation Should Be Made? What is The Primary Characteristic the Venture Capitalist Is Seeking in an Entrepreneur? What Are the Other Characteristics of the Entrepreneur? Know Your Stuff. Things You Do Not Say to the Venture Capitalist. Things Not to Do in the Meeting. How to Negotiate in the First or Subsequent Meetings. How to Cut the Deal. Ownership by the Venture Capitalist. How Do Venture Capitalists Price Investments? Downside Risk. After the Negotiations. Objective.



6. The Commitment Letter.

Commitment Letters. What Is In the Commitment Letter? Comments on the Commitment Letter. What Is An Investment Memorandum or Term Sheet? Consulting Agreement. Nonlegal Commitment Letter. Arguing Over Minor Points. Items You Should Not Sign in the Commitment Letter. Objective.



7. Due Diligence.

What to Expect From a Visit to Your Business. How to Give a Good Cook's Tour. Investigating the Individuals. Venture Capitalists Are Paranoid. Other Aspects of the Background Check. Do They Have a Test for Entrepreneurs? Experience Is the Watchword. Investigating the Entrepreneur and the Team. Questions for Other People in the Organization. Investigating the Business, the Product, and the Industry. When the Venture Firm Finds Something Wrong. Questions for the Venture Capitalist. Background Information on the Venture Capital Company. Timing Questions for the Venture Capitalist. Objective.



8. The Closing.

First Closing: Legal Documents For Loans With Options. Simple Is Good. Unethical Venture Capitalist. Second Closing: Legal Documents for the Purchase of Preferred Stock. Lawyers as Businesspeople. Experienced Lawyers Are Best. Legal Fees Keep Going Up. How Lawyers Run Up Your Legal Bill. Syndications and Lawyers. The Closing: A Moment of Truth. Closing Fees That You Pay. What to Remember About Lawyers. Objective.



9. Working Together.

Major Policy Decisions Should Be Joint Ones. Monthly Financials. Hold Board or Investor Meetings at Least Monthly. Other Discussion Items for the Venture Capitalist. You Are Building Confidence. Warning Signals to the Venture Capitalist. Why Entrepreneurs Have Financial Problems. Why Entrepreneurs Have People Problems. The Protean Entrepreneur. When You Have Problems. Analysis of the Situation. What the Venture Capitalist Will Do. Ten Things Not to Say. Secret of a Successful Relationship. Venture Capitalist as Board Member. Degree of Involvement by the Venture Capitalist. Objective.



The Exit.

It's All a Matter of Price. First Method: Going Public. Second Method: Purchase by the Company or Entrepreneur. Purchase by Employee's Stock Ownership Trust. Exit by Puts and Calls. Third Method: Sale of the Company to Another Company. Fourth Method: Finding a New Investor. Fifth Method: Liquidation of the Company. Negotiating with the Venture Capitalist. Objective.



11. Using Brokers.

Accountants: How to Use Them. Investment Bankers: What They Can Do. Lawyers: Are They O.K. as Financial Brokers? Independent Financial Brokers: What Do They Want? Qualities to Look for in a Broker. Agreement with the Broker. Some Tips on Dealing with Brokers. Amount and Type of Fees. Who Should Present the Plan to the Venture Capitalist? Objective.



Advice From Us to You.

Keeping Up With Venture Capitalists. Selecting a Venture Firm. Venture Capital Process. Venture Capitalists as Human Beings. Problem Companies Looking for Financing. Financing for Your Job or Your Ego. Too Much Information. Do You Understand Credibility? Ten Commandments for an Entrepreneur. Parting Shot.



Glossary.


Actual Documents.

Commitment Letter. Legal Document 1. Legal Document 2. Legal Document 3. Legal Document 4. Legal Document 5.



Index.

Preface

Introduction

This book has been great fun to write, and, with this revision, it is ready for another 15-year run. One of the teachers currently using the book in her class calls it a classic. When the book was written almost 20 years ago, there was no indication that Venture Capital Handbook would become a classic. But with the tremendous increase in venture capital and the many new and young businesses looking for VC, the book has proved its worth by filling a need for guidance in this field.

The chief strength of the book is that it is a "nuts and bolts" approach on how to raise venture capital. It talks about the process in straight talk without a lot of theory or war stories. It shows the reader how to win the game of raising venture capital.

It has been gratifying to see Venture Capital Handbook be so useful to so many entrepreneurs and small business owners. Some entrepreneurs, in letters to the author have claimed to have raised great sums of money using this book. It is wonderful that there are so many business schools that use the book today, and it is gratifying to know that so many people are studying how to raise venture capital. It would be fun to know how many billions of dollars have been raised by venture capital firms by using this book. It would be quite a rush to know exactly how many businesses came into existence because of this book.

We know the book is having an impact because our venture capital friends make snide comments to us about "giving away the secrets of the business." It seems that we have made it more difficult for them to gain the advantage over the entrepreneur. But we are sure that this book has also made it easier for them to work with some of the entrepreneurs who have read it because the book gives the reader some insight into the world of the venture capitalist.

In this second edition, we have a father-daughter team doing the revision and updating the book for the current times. It has been easy to update the book because so much of the business of raising venture capital has not changed. We both work at a new fund we created called Gladstone Capital Corporation. Our Web page is www.gladstonecapital.com. Come visit our Web page and learn about our fund and more about venture capital.

Updates

Submit Errata

More Information

InformIT Promotional Mailings & Special Offers

I would like to receive exclusive offers and hear about products from InformIT and its family of brands. I can unsubscribe at any time.

Overview


Pearson Education, Inc., 221 River Street, Hoboken, New Jersey 07030, (Pearson) presents this site to provide information about products and services that can be purchased through this site.

This privacy notice provides an overview of our commitment to privacy and describes how we collect, protect, use and share personal information collected through this site. Please note that other Pearson websites and online products and services have their own separate privacy policies.

Collection and Use of Information


To conduct business and deliver products and services, Pearson collects and uses personal information in several ways in connection with this site, including:

Questions and Inquiries

For inquiries and questions, we collect the inquiry or question, together with name, contact details (email address, phone number and mailing address) and any other additional information voluntarily submitted to us through a Contact Us form or an email. We use this information to address the inquiry and respond to the question.

Online Store

For orders and purchases placed through our online store on this site, we collect order details, name, institution name and address (if applicable), email address, phone number, shipping and billing addresses, credit/debit card information, shipping options and any instructions. We use this information to complete transactions, fulfill orders, communicate with individuals placing orders or visiting the online store, and for related purposes.

Surveys

Pearson may offer opportunities to provide feedback or participate in surveys, including surveys evaluating Pearson products, services or sites. Participation is voluntary. Pearson collects information requested in the survey questions and uses the information to evaluate, support, maintain and improve products, services or sites, develop new products and services, conduct educational research and for other purposes specified in the survey.

Contests and Drawings

Occasionally, we may sponsor a contest or drawing. Participation is optional. Pearson collects name, contact information and other information specified on the entry form for the contest or drawing to conduct the contest or drawing. Pearson may collect additional personal information from the winners of a contest or drawing in order to award the prize and for tax reporting purposes, as required by law.

Newsletters

If you have elected to receive email newsletters or promotional mailings and special offers but want to unsubscribe, simply email information@informit.com.

Service Announcements

On rare occasions it is necessary to send out a strictly service related announcement. For instance, if our service is temporarily suspended for maintenance we might send users an email. Generally, users may not opt-out of these communications, though they can deactivate their account information. However, these communications are not promotional in nature.

Customer Service

We communicate with users on a regular basis to provide requested services and in regard to issues relating to their account we reply via email or phone in accordance with the users' wishes when a user submits their information through our Contact Us form.

Other Collection and Use of Information


Application and System Logs

Pearson automatically collects log data to help ensure the delivery, availability and security of this site. Log data may include technical information about how a user or visitor connected to this site, such as browser type, type of computer/device, operating system, internet service provider and IP address. We use this information for support purposes and to monitor the health of the site, identify problems, improve service, detect unauthorized access and fraudulent activity, prevent and respond to security incidents and appropriately scale computing resources.

Web Analytics

Pearson may use third party web trend analytical services, including Google Analytics, to collect visitor information, such as IP addresses, browser types, referring pages, pages visited and time spent on a particular site. While these analytical services collect and report information on an anonymous basis, they may use cookies to gather web trend information. The information gathered may enable Pearson (but not the third party web trend services) to link information with application and system log data. Pearson uses this information for system administration and to identify problems, improve service, detect unauthorized access and fraudulent activity, prevent and respond to security incidents, appropriately scale computing resources and otherwise support and deliver this site and its services.

Cookies and Related Technologies

This site uses cookies and similar technologies to personalize content, measure traffic patterns, control security, track use and access of information on this site, and provide interest-based messages and advertising. Users can manage and block the use of cookies through their browser. Disabling or blocking certain cookies may limit the functionality of this site.

Do Not Track

This site currently does not respond to Do Not Track signals.

Security


Pearson uses appropriate physical, administrative and technical security measures to protect personal information from unauthorized access, use and disclosure.

Children


This site is not directed to children under the age of 13.

Marketing


Pearson may send or direct marketing communications to users, provided that

  • Pearson will not use personal information collected or processed as a K-12 school service provider for the purpose of directed or targeted advertising.
  • Such marketing is consistent with applicable law and Pearson's legal obligations.
  • Pearson will not knowingly direct or send marketing communications to an individual who has expressed a preference not to receive marketing.
  • Where required by applicable law, express or implied consent to marketing exists and has not been withdrawn.

Pearson may provide personal information to a third party service provider on a restricted basis to provide marketing solely on behalf of Pearson or an affiliate or customer for whom Pearson is a service provider. Marketing preferences may be changed at any time.

Correcting/Updating Personal Information


If a user's personally identifiable information changes (such as your postal address or email address), we provide a way to correct or update that user's personal data provided to us. This can be done on the Account page. If a user no longer desires our service and desires to delete his or her account, please contact us at customer-service@informit.com and we will process the deletion of a user's account.

Choice/Opt-out


Users can always make an informed choice as to whether they should proceed with certain services offered by InformIT. If you choose to remove yourself from our mailing list(s) simply visit the following page and uncheck any communication you no longer want to receive: www.informit.com/u.aspx.

Sale of Personal Information


Pearson does not rent or sell personal information in exchange for any payment of money.

While Pearson does not sell personal information, as defined in Nevada law, Nevada residents may email a request for no sale of their personal information to NevadaDesignatedRequest@pearson.com.

Supplemental Privacy Statement for California Residents


California residents should read our Supplemental privacy statement for California residents in conjunction with this Privacy Notice. The Supplemental privacy statement for California residents explains Pearson's commitment to comply with California law and applies to personal information of California residents collected in connection with this site and the Services.

Sharing and Disclosure


Pearson may disclose personal information, as follows:

  • As required by law.
  • With the consent of the individual (or their parent, if the individual is a minor)
  • In response to a subpoena, court order or legal process, to the extent permitted or required by law
  • To protect the security and safety of individuals, data, assets and systems, consistent with applicable law
  • In connection the sale, joint venture or other transfer of some or all of its company or assets, subject to the provisions of this Privacy Notice
  • To investigate or address actual or suspected fraud or other illegal activities
  • To exercise its legal rights, including enforcement of the Terms of Use for this site or another contract
  • To affiliated Pearson companies and other companies and organizations who perform work for Pearson and are obligated to protect the privacy of personal information consistent with this Privacy Notice
  • To a school, organization, company or government agency, where Pearson collects or processes the personal information in a school setting or on behalf of such organization, company or government agency.

Links


This web site contains links to other sites. Please be aware that we are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of each and every web site that collects Personal Information. This privacy statement applies solely to information collected by this web site.

Requests and Contact


Please contact us about this Privacy Notice or if you have any requests or questions relating to the privacy of your personal information.

Changes to this Privacy Notice


We may revise this Privacy Notice through an updated posting. We will identify the effective date of the revision in the posting. Often, updates are made to provide greater clarity or to comply with changes in regulatory requirements. If the updates involve material changes to the collection, protection, use or disclosure of Personal Information, Pearson will provide notice of the change through a conspicuous notice on this site or other appropriate way. Continued use of the site after the effective date of a posted revision evidences acceptance. Please contact us if you have questions or concerns about the Privacy Notice or any objection to any revisions.

Last Update: November 17, 2020