Raising Venture Capital for the Serious Entrepreneur by Berkery, Dermot;

Short description:

Obtain Funding from Venture Capitalists at the Best Terms Possible

Authoritative and comprehensive, Raising Venture Capital for the Serious Entrepreneur is an all-in-one sourcebook for entrepreneurs seeking venture capital from investors. This expert resource contains an unsurpassed analysis of the venture capital process, together with the guidance and strategies you need to make the best possible deal_and ensure the success of your business.

Written by a leading international venture capitalist and filled with case studies, charts, and

exercises, Raising Venture Capital for the Serious Entrepreneur explains:

• How to develop a multistage financing map
  
  
• How to determine the amount of capital to raise and what to spend it on
  
  
• How to devise a business plan that entices investors
  
  
• How to spot the true meaning of terms in a term sheet
  
  
• How to negotiate the terms line-by-line
  
  
• How to split the rewards between founders and investors
  
  
• How to allocate control and align interests between founders/management and investors

Long description:

Have the negotiating edge when getting your new business off the ground

Written by Dermot Berkery, an internationally known venture capitalist with Delta Partners, this complete toolbook thoroughly details how venture capitalists arrange the financing for a company; what they look for in a business plan; how they value a business; and how they structure the terms of an agreement. Within its pages, you'll find everything you need to successfully raise new business capital with the most attractive terms possible.

Using informative case studies, detailed charts, and term sheet exercises, Raising Venture Capital for the Serious Entrepreneur discusses the basic principles of the venture capital method, strategies for raising capital, methods of valuing the early-stage venture, and proven techniques for negotiating the deal. The author leads you step-by-step through:

• Developing a Financing Map
• Getting to the First Stepping Stone
• Understanding the Unique Cash Flow and Risk Dynamics of Early Stage Ventures
• Determining the Amount of Capital to Raise and What to Spend It on
• Learning How Venture Capital Firms Think
• Creating a Winning Business Plan
• Funding Early-Stage Companies
• Agreeing on a Term Sheet with a Venture Capitalist
• Setting Terms for Splitting the Rewards
• Allocating Control between Founders/Management and Investors
• Aligning the Interests of Founders/Management and Investors

This invaluable guide also includes term sheet exercises that test your understanding of various financing situations facing companies. In addition, the book features three extensive case studies: the first covering a fictional start-up company used throughout the book, the second offering a stepping stone map, and the third presenting a term sheet used in practice by venture capitalists.

Have the negotiating edge when getting your new business off the ground

Written by Dermot Berkery, an internationally known venture capitalist with Delta Partners, this complete toolbook thoroughly details how venture capitalists arrange the financing for a company; what they look for in a business plan; how they value a business; and how they structure the terms of an agreement. Within its pages, you'll find everything you need to successfully raise new business capital with the most attractive terms possible.

Using informative case studies, detailed charts, and term sheet exercises, Raising Venture Capital for the Serious Entrepreneur discusses the basic principles of the venture capital method, strategies for raising capital, methods of valuing the early-stage venture, and proven techniques for negotiating the deal. The author leads you step-by-step through:

• Developing a Financing Map
• Getting to the First Stepping Stone
• Understanding the Unique Cash Flow and Risk Dynamics of Early Stage Ventures
• Determining the Amount of Capital to Raise and What to Spend It on
• Learning How Venture Capital Firms Think
• Creating a Winning Business Plan
• Funding Early-Stage Companies
• Agreeing on a Term Sheet with a Venture Capitalist
• Setting Terms for Splitting the Rewards
• Allocating Control between Founders/Management and Investors
• Aligning the Interests of Founders/Management and Investors

This invaluable guide also includes term sheet exercises that test your understanding of various financing situations facing companies. In addition, the book features three extensive case studies: the first covering a fictional start-up company used throughout the book, the second offering a stepping stone map, and the third presenting a term sheet used in practice by venture capitalists.

Table of Contents:

Preface

Introduction

Crediitica, Inc. Case Study

Section A: Understanding the Basics of the Venture Capital Method

1.Developing a Financing Map

2.Getting to the First Stepping Stone

3.The Unique Cash Flow and Risk Dynamics of Early Stage Ventures

Section B: Raising the Finance

4.Determining the Amount of Capital to Raise and What to Spend It On

5.Getting Behind How Venture Capital Firms Think

6.Creating a Winning Business Plan

Section C: Valuing the Early Stage Venture

7.Funding Early-Stage Companies

Section D: Negotiating the Deal: Term Sheets

8.Agreeing a Term Sheet with a Venture Capitalist

9.Terms for Splitting the Rewards

10.Allocating Control Between Founders/Management and Investors

11.Aligning the Interests of Founders/Management and Investors

Section E: Exercises

12.Term Sheet Exercises

Appendix A

Appendix B