The Business of Venture Capital: Insights from Leading Practitioners on the Art of Raising a Fund, Deal Structuring, Value Creation, and Exit Strategies (Wiley Finance) [Hardcover]

Mahendra Ramsinghani (Author)

Book Description

Publication Date: October 25, 2011 | Series: Wiley Finance (Book 612)

The Business of Venture Capital describes the various aspects of Raising the venture fund, sourcing and structuring investments and insights to generate returns in a consistent manner.  The book covers the distinct aspects of the venture capital investment process and provides insights and perspectives from leading venture capitalists, including the Midas list of winners who had consistent, repeated success in a world where every now and then, there are one hit wonders. This is the only book that covers it all- VC fundraising, sourcing deals and exits of investments.

Editorial Reviews

Review

" If you read only one guide to becoming a successful VC, this is the one to read."
--Paul Maeder, Chairman, National Venture Capital Association (NVCA)

"Captures the LP mindset succinctly--any GP or aspiring VCs can benefit from this book."
--Timothy Recker, Chairman, Institutional Limited Partners Association (ILPA)

"An immensely useful and comprehensive guide" --Mark Florman, CEO, British Venture Capital Association (BVCA)

"a critical resource for the bookshelf of any practitioner or entrepreneur."
--Kelly M. Williams, Managing Director and Head of Customized Fund Investment Group, Credit Suisse, a fund-of-funds with $27 billion under management

" packs the insights and wisdom of those who have done it, not once but multiple times."
--Frank Caufield, cofounder, Kleiner Perkins Caufield and Byers, one of the world's leading venture firms

From the Inside Flap

The definitive guide to demystifying the venture capital business, The Business of Venture Capital covers the entire spectrum of this field, from raising funds and structuring investments to assessing exit pathways. It is the first book of its kind to focus on the four critical pillars of the venture capital business raising the fund, sourcing and structuring investments, creating value as a board member, and finally, leading investments to exits. Written by a practitioner for practitioners, the book provides the necessary breadth and depth, simplifies the jargon, and balances the analytical logic with experiential wisdom. Starting with a Foreword by Mark Heesen, President, National Venture Capital Association (NVCA), this important guide includes insights and perspectives from leading experts.

The Business of Venture Capital:

• Covers the process of raising the venture fund, including identifying and assessing the Limited Partner universe; fund due-diligence criteria; and fund investment terms in Part One

• Discusses the investment process, including sourcing investment opportunities; conducting due diligence and negotiating investment terms; adding value as a board member; and exploring exit pathways in Part Two

• Offers insights, anecdotes, and wisdom from the experiences of best-in-class practitioners

• Includes interviews conducted by Leading Limited Partners/Fund-of-Funds with Credit Suisse, Top Tier Capital Partners, Grove Street Advisors, Rho Capital, Pension Fund Managers, and Family Office Managers

• Features the insights of over twenty-five leading venture capital practitioners, frequently featured on Forbes' Midas List of top venture capitalists, including Frank Caufield (cofounder, Kleiner Perkins Caufield and Byers), David Cowan (Bessemer Venture Partners), Todd Dagres (Spark Capital), Promod Haque (Norwest Venture Partners), Tim Draper (Draper Fisher Jurvetson), Brad Feld (Foundry Group), Mitch Lasky (Benchmark Capital), John Jarve (Menlo Ventures), Terry McGuire (Polaris Capital and former NVCA chair), Bryan Roberts (Venrock), and Bob Nelsen (ARCH Venture Partners)

Those aspiring to raise a fund, pursue a career in venture capital, or simply understand the art of investing can benefit from this book. The companion website offers various tools such as GP Fund Due Diligence Checklist, Investment Due Diligence Checklist, and more, as well as external links to industry white papers and other industry guidelines.

See all Editorial Reviews

Product Details

• Hardcover: 392 pages
• Publisher: Wiley; 1 edition (October 25, 2011)
• Language: English
• ISBN-10: 0470874449
• ISBN-13: 978-0470874448
• Product Dimensions: 9.1 x 6.3 x 1.7 inches
• Shipping Weight: 1 pounds (View shipping rates and policies)
• Average Customer Review: 5.0 out of 5 stars  See all reviews (26 customer reviews)
• Amazon Best Sellers Rank: #62,953 in Books (See Top 100 in Books)

More About the Author

Mahendra Ramsinghani manages Invest Detroit's First Step Fund, Detroit, MI - a fund focused on micro-investments in pre-seed and seed stage companies. Mahendra has been involved in financing of over thirty start-ups and has a decade of experience in fostering the growth of early-stage technology businesses. As Director - Venture Capital Initiatives for Michigan Economic Development Corporation (MEDC) Mahendra led the legislation for two Fund-of-Fund programs that deploy $200+ million in VC funds Michigan.

Mahendra's background includes a Bachelor's in Electronics Engineering, an MBA with a major in Marketing & Finance. In 2005, he conceptualized and started an orphanage in India. He lives with his wife, Deepa and daughter Aria in Ann Arbor, MI.

Customer Reviews

Most Helpful Customer Reviews

5 of 5 people found the following review helpful:

5.0 out of 5 stars A Must Read for All Entrepreneurs Considering Starting a Venture Fund, October 6, 2011

By 

Doug Neal - See all my reviews

Amazon Verified Purchase

This review is from: The Business of Venture Capital: Insights from Leading Practitioners on the Art of Raising a Fund, Deal Structuring, Value Creation, and Exit Strategies (Wiley Finance) (Hardcover)

The Business of Venture Capital is an indispensable guide for entrepreneurs who are considering raising a successful venture fund. The author's in depth knowledge and research provides entrepreneurs with a behind the scene authoritative and informative look at what makes a good venture firm operate and how they make their decisions.

5 of 5 people found the following review helpful:

5.0 out of 5 stars The New Bible for Venture Capitalists, October 6, 2011

By 

Terry Cross - See all my reviews

This review is from: The Business of Venture Capital: Insights from Leading Practitioners on the Art of Raising a Fund, Deal Structuring, Value Creation, and Exit Strategies (Wiley Finance) (Hardcover)

The Business of Venture Capital covers the entire spectrum of the VC Business from fund raising, to developing the investment strategy, deal terms, portfolio management and exits. The author is obviously a strong practitioner writing for present and future practitioners with lots of useful, real-time, and up to date examples and quotes from many of the leading VCs and Limited Partners etc. It's the kind of book you will find yourself referring to over and over again if you pursue a career as a VC, but it also a must read for one planning to be a VC. Look at it as a place you can go to get the best answers from the well-versed VCs on all the finer points of this business. This is probably not a read for entrepreneurs, though it may be interesting to some, but it may well become the new Bible for the VC profession.

3 of 3 people found the following review helpful:

5.0 out of 5 stars If you want to be a VC, October 25, 2011

By 

ned (Ann Arbor, MI USA) - See all my reviews

This review is from: The Business of Venture Capital: Insights from Leading Practitioners on the Art of Raising a Fund, Deal Structuring, Value Creation, and Exit Strategies (Wiley Finance) (Hardcover)

EVERYBODY wants to be a venture capitalist. Who wouldn't? It seems so easy... just find the next Google, invest a little money and bingo... you're rich. Raise a fund? That'll be easy too. After all, you know lots of rich people, and they'll definitely want to invest in YOUR fund. And, even if you can't find the next Google, collecting a 2% management fee on your $100 million fund will be awesome.

If you think this is all it takes to be a VC, just stop reading. If, however, you understand that in the real world there will be lots of hurdles, twists, and turns, stop reading AND buy this book. Ramsinghani lays out what those hurdles are and gives concrete examples from the lives of some of the world's most successful venture capitalists on how to overcome them. It's a long road, but this book is the insider's guide on how to navigate it.