Raising Venture Capital

Offering a deep insight into the venture capital deal-making process, Raising Venture Capital also provides valuable introduction to the subject. The book is practical in focus but based on sound academic theory, research and teaching materials gathered over the last 4 years at Tanaka Business School. Part one covers the history of the venture capital industry, shows why entrepreneurs need venture capital finance, and looks at how venture capitals raise and structure their funds. It also covers valuation methods for venture capital investments, and portfolio management. Part two illustrates how successful entrepreneurs raise finance from venture capitals, and gives details on how to approach venture capitals, how to choose the right venture capital firm, and how venture capitals and entrepreneurs work together after the deal is done. Part three gives a blow-by-blow account of the structure of a venture capital deal.

Offering a deep insight into the venture capital deal-makingprocess, Raising Venture Capital also provides valuableintroduction to the subject. The book is practical in focus butbased on sound academic theory, research and teaching materialsgathered over the last 4 years at Tanaka Business School.Part one covers the history of the venture capital industryshows why entrepreneurs need venture capital finance, and looks athow venture capitals raise and structure their funds. It alsocovers valuation methods for venture capital investments, andportfolio management.Part two illustrates how successful entrepreneurs raise financefrom venture capitals, and gives details on how to approach venturecapitals, how to choose the right venture capital firm, and howventure capitals and entrepreneurs work together after thedeal is done.Part three gives a blow-by-blow account of the structure of aventure capital deal.

Preface xiiiPart I The Business of Venture Capital 11 Entrepreneurs and Venture Capitalists 32 Other People's Money 93 The Limited Partnership 154 The Competitive Environment 255 The VC's Investment Model 31Part II Accessing Venture Capital 496 Introduction to Part II 517 Is Venture Capital the Right Option? 538 Choosing a VC Firm 599 The Entry Point 6510 The Investment Process 7111 Preparing for the Investment Process 81Part III The VC Term Sheet 9912 Introduction to Term Sheets 10113 Business Valuation 12114 Investment Structure 12315 Syndication 12516 Investment Milestones 12917 Corporate Governance 13918 Equity Participation 14719 Share Incentives 16920 Share Vesting 17521 Pre-emption Rights on Securities Issues 18522 Anti-dilution Rights 19123 Provisions Relating to Share Transfers 20324 Deal Management Terms 219Index 229