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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.
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.
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.
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.
What Are the Major Questions? Business Proposal Questions. Other Information the Venture Capitalist Will Need. Will the Venture Capitalist Ask All These Questions? Objective.
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.
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.
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.
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.
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.
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.
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.
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.
Commitment Letter. Legal Document 1. Legal Document 2. Legal Document 3. Legal Document 4. Legal Document 5.