{"product_id":"the-business-of-venture-capital-isbn-9781119639688","title":"The Business of Venture Capital","description":"\u003cp\u003e\u003cb\u003eThe new edition of the definitive guide for venture capital practitioners—covers the entire process of venture firm formation \u0026amp; management, fund-raising, portfolio construction, value creation, and exit strategies\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSince its initial publication, \u003ci\u003eThe Business of Venture Capital\u003c\/i\u003e has been hailed as the definitive, most comprehensive book on the subject. Now in its third edition, this market-leading text explains the multiple facets of the business of venture capital, from raising venture funds, to structuring investments, to generating consistent returns, to evaluating exit strategies. Author and VC Mahendra Ramsinghani who has invested in startups and venture funds for over a decade, offers best practices from experts on the front lines of this business.\u003c\/p\u003e \u003cp\u003eThis fully-updated edition includes fresh perspectives on the Softbank effect, career paths for young professionals, case studies and cultural disasters, investment models, epic failures, and more. Readers are guided through each stage of the VC process, supported by a companion website containing tools such as the LP-GP Fund Due Diligence Checklist, the Investment Due Diligence Checklist, an Investment Summary format, and links to white papers and other industry guidelines. Designed for experienced practitioners, angels, devils, and novices alike, this valuable resource:\u003c\/p\u003e \u003cul\u003e \u003cli\u003eIdentifies the key attributes of a VC professional and the arc of an investor’s career\u003c\/li\u003e \u003cli\u003eCovers the art of raising a venture fund, identifying anchor investors, fund due diligence, negotiating fund investment terms with limited partners, and more\u003c\/li\u003e \u003cli\u003eExamines the distinct aspects of portfolio construction and value creation\u003c\/li\u003e \u003cli\u003eBalances technical analyses and real-world insights\u003c\/li\u003e \u003cli\u003eFeatures interviews, personal stories, anecdotes, and wisdom from leading venture capitalists\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003e\u003ci\u003eThe Business of Venture Capital, Third Edition \u003c\/i\u003eis a must-read book for anyone seeking to raise a venture fund or pursue a career in venture capital, as well as practicing venture capitalists, angel investors or devils alike, limited partners, attorneys, start-up entrepreneurs, and MBA students. \u003c\/p\u003e \u003cp\u003eForeword xiii\u003c\/p\u003e \u003cp\u003ePreface xv\u003c\/p\u003e \u003cp\u003eAcknowledgments xxvii\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart One The Making of a VC\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e1 The Business of Cash and Carry 3\u003c\/p\u003e \u003cp\u003e2 Why Choose a Career in VC 11\u003c\/p\u003e \u003cp\u003e3 Attributes of Successful VCs 15\u003c\/p\u003e \u003cp\u003e4 Welcome to the Land of Ad-Venture 21\u003c\/p\u003e \u003cp\u003e5 Developing Your Investment Career 41\u003c\/p\u003e \u003cp\u003e6 A Business Where Enemies Accumulate 57\u003c\/p\u003e \u003cp\u003e7 Generational Transfer and Succession 63\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Two Raising Your Venture Fund\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e8 LP Universe 73\u003c\/p\u003e \u003cp\u003e9 LPs of Choice: Fund of Funds 89\u003c\/p\u003e \u003cp\u003e10 How LPs Conduct Fund Due Diligence 95\u003c\/p\u003e \u003cp\u003e11 Defining Your Fund’s Investment Strategy 99\u003c\/p\u003e \u003cp\u003e12 Investment Team Diligence 119\u003c\/p\u003e \u003cp\u003e13 Fund Size and Portfolio Construction 129\u003c\/p\u003e \u003cp\u003e14 Performance Analysis 137\u003c\/p\u003e \u003cp\u003e15 Terms of Fund Investment 155\u003c\/p\u003e \u003cp\u003e16 The Venture Firm’s Ethos, Culture, and Values 173\u003c\/p\u003e \u003cp\u003e17 Raising Your First Fund 193\u003c\/p\u003e \u003cp\u003e18 The Fundraising Roadshow 205\u003c\/p\u003e \u003cp\u003e19 Why LPs Seek First-Time Funds 221\u003c\/p\u003e \u003cp\u003e20 Sourcing Investment Opportunities 229\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Three Building Your Portfolio\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e21 Due Diligence Cheat Sheet 255\u003c\/p\u003e \u003cp\u003e22 Diligence 259\u003c\/p\u003e \u003cp\u003e23 Management Team Diligence: Assessing the Intangible 269\u003c\/p\u003e \u003cp\u003e24 Market, Product, and Business Model Analysis 293\u003c\/p\u003e \u003cp\u003e25 Terms and Conditions Apply 303\u003c\/p\u003e \u003cp\u003e26 Structure of the Term Sheet 309\u003c\/p\u003e \u003cp\u003e27 Buy Low, Sell High 317\u003c\/p\u003e \u003cp\u003e28 The Closing Process 353\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Four The Art of Value Creation\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e29 Serving on Boards 357\u003c\/p\u003e \u003cp\u003e30 Board Culture and Orientation 367\u003c\/p\u003e \u003cp\u003e31 Let Me Know How I Can Be Helpful: Value Creation 377\u003c\/p\u003e \u003cp\u003e32 Challenges in the Boardroom 391\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Five Exits: Liquidity Events and Champagne\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e33 Exit Strategies 407\u003c\/p\u003e \u003cp\u003e34 Acquisitions 417\u003c\/p\u003e \u003cp\u003e35 Initial Public Offering 435\u003c\/p\u003e \u003cp\u003e36 Secondary Sales 449\u003c\/p\u003e \u003cp\u003eNotes 451\u003c\/p\u003e \u003cp\u003eIndex 485\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eMAHENDRA RAMSINGHANI, B. Engg., MBA,\u003c\/b\u003e has over fifteen years of investment experience and is the founder of Secure Octane, a San Francisco–based cybersecurity fund. He is the former Managing Director of First Step Fund and has advised investment organizations in the U.S., Asia Pacific, and Middle East regions. He is a frequent speaker at engagements around the world, and contributes regularly to professional publications, including Techcrunch, \u003ci\u003eForbes\u003c\/i\u003e, and Venturebeat.   \u003c\/p\u003e\u003cp\u003e\u003ci\u003eThe Business of Venture Capital\u003c\/i\u003e, already in its \u003ci\u003eThird Edition\u003c\/i\u003e, is a remarkably forward-thinking guide to VC. Naturally, it's important to understand the basics of how venture capital works, and there the book certainly doesn't disappoint. Simply imitating the investment practices from those who came before us isn't enough, though—especially in today's hypercompetitive investing arena. We need to go beyond. \u003c\/p\u003e\u003cp\u003eThis book will help you build a foundation of knowledge about VC investing, and then it will help you shift that perspective. The \"business as usual\" approach might bring success, but for \u003ci\u003ereal\u003c\/i\u003e success—the kind that really means something, even after all the checks have been signed—we need to put our hearts and souls into serving the founders on the VC journey. Working within a structured approach to raising a fund, sourcing investments, and working toward (and attaining!) exits, we can help founders realize their dreams, innovate, and build a better future, one company at a time. Its commitment to such an intricate approach is what makes \u003ci\u003eThe Business of Venture Capital\u003c\/i\u003e the first-choice VC manual for capitalists, limited partners, entrepreneurs, and students. \u003c\/p\u003e\u003cp\u003eThe \u003ci\u003eThird Edition\u003c\/i\u003e includes updated case studies, the most relevant investment models, and refreshed content throughout. Venture capital is not for the faint of heart—this book provides a roadmap for getting into the business while managing risk and overcoming biases. Navigating the challenges of a VC career and knowing how to build that career, as well as how to get out when the time comes, is key. Prospective VCs must also understand portfolio strategy, due diligence, boardroom intricacies, and how to structure transactions and exits. It's a lot to know, and this book makes it manageable. There's no substitute for getting out there and learning by investing—but \u003ci\u003eThe Business of Venture Capital\u003c\/i\u003e will help investors hit the ground running.   \u003c\/p\u003e\u003cp\u003e\u003cb\u003ePRAISE FOR THE BUSINESS OF VENTURE CAPITAL\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003e\"In the \u003ci\u003eFirst Edition\u003c\/i\u003e of this book, Mahendra covered Arboretum's Fund I journey. A decade later, we are now on Arboretum Fund V. \u003ci\u003eThe Business of Venture Capital\u003c\/i\u003e continues to inspire, inform, and shape the journey of future fund managers.\"\u003cbr\u003e \u003cb\u003e —Jan Garfinkle, Founder and Managing Partner, Arboretum Ventures; Board Chair, National Venture Capital Association (2019-2020)\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003e\"Mahendra has written the book I needed when I first entered the venture business. Rather than blindly stumbling my way to understanding the basics, I would have saved so much time. This book is like getting a five-year head start for anyone who wants to get up to speed about how it really works.\"\u003cbr\u003e \u003cb\u003e —Mike Maples, Jr., Founding Partner, Floodgate\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003e\"A solid foundation of investment frameworks and mental models for any venture investor, a useful guide in our rapidly changing world.\"\u003cbr\u003e \u003cb\u003e —Beezer Clarkson, Managing Director, Sapphire Partners\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003e\"An essential guide for any investor—one of the few books that weaves real-life case studies with leading academic research.\"\u003cbr\u003e \u003cb\u003e —T.K. Kurien, Managing Partner and Chief Investment Officer, Premji Invest\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003e\"A definitive guide to a nuanced, complex business which has no formulas—\u003ci\u003eThe Business of Venture Capital\u003c\/i\u003e peels back the curtains to reveal an insider's look into the high-stakes world of high-tech VC.\"\u003cbr\u003e \u003cb\u003e —Peter Hebert, Co-founder and Managing Partner, Lux Capital, a VC firm with $2.4 billion under management\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003e\"A decade later, the \u003ci\u003eThird Edition\u003c\/i\u003e of this book continues to build upon the VC industry, its best practices, worst biases, swift changes, and all the excitement that goes with it.\"\u003cbr\u003e \u003cb\u003e —Brad Feld, Co-founder, Foundry Group and Techstars; Co-author,\u003c\/b\u003e \u003cb\u003e\u003ci\u003eVenture Deals\u003c\/i\u003e\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003e\"T.S. Eliot suggested that exploration would lead us back to where we started, allowing us to know the place for the first time. Mahendra's book was like that for me, shedding fresh light on areas I'd explored during two decades in VC while also expertly illuminating emerging trends.\"\u003cbr\u003e \u003cb\u003e —Chris \"SuperLP\" Duovos, Founder and Managing Director, Ahoy Capital\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003e\"Another masterpiece digging into the art of venture funds, portfolio construction, and deal mechanics! Loved it and a must-read.\"\u003cbr\u003e \u003cb\u003e —Harry Stebbings, Founder, Stride.VC and The Twenty Minute VC Podcast\u003c\/b\u003e\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47990179561701,"sku":"NP9781119639688","price":100.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781119639688.jpg?v=1761786807","url":"https:\/\/k12savings.com\/products\/the-business-of-venture-capital-isbn-9781119639688","provider":"K12savings","version":"1.0","type":"link"}