Raising Venture Capital for the Serious Entrepreneur
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.