Mastering the VC Game: A Venture Capital Insider Reveals How to Get from Start-up to IPO on Your Terms [Hardcover]

Jeffrey Bussgang (Author)

Book Description

Release date: April 29, 2010

Entrepreneurs who dream of building the next Amazon, Facebook, or Google have the opportunity to take advantage of one of the most powerful economic engines the world has ever known: venture capital. To do that, you need to woo, impress, and persuade venture capitalists to back your endeavor. That task alone is a challenge. But finding and choosing the right investor can be harder still. Even if you manage to get backing, you want your VC to be a partner, not some dictator who will undermine your vision and take control of your life's work.

Jeffrey Bussgang is one of a very few people who have played on both sides of this high-stakes game. By his early thirties, he had helped build two successful start-ups-one went public, the other was acquired. Now he uses his experience and unique perspective on "the other side" as a venture capitalist helping entrepreneurs bring their dreams to fruition.

In the book, Bussgang offers high-level insights, colorful stories, and practical advice gathered from his own experience as well as from interviews with dozens of the most successful players on both sides of the game, including Twitter's Jack Dorsey and LinkedIn's Reid Hoffman. He reveals how to get noticed, perfect a pitch, and negotiate a partnership that works for everyone.

An insider's guide to the secrets of the world venture capital, Mastering the VC Game will prove invaluable for entrepreneurs seeking capital and successful partnerships.

To learn more, visit JeffBussgang.com.

Editorial Reviews

Review

"Finding the right VC for you and your company can be a challenging task. Bussgang's recounting of his experience gives a unique perspective on the VC world and is a compelling read for entrepreneurs."
-Tony Hsieh, CEO, Zappos.com

"Mastering the VC Game is part how to and part war story. It is the best kind of book: a fun and educational read."
-Fred Wilson, managing partner, Union Square Ventures

"A 360-degree perspective on the venture capitalist-entrepreneur virtuous cycle. Read this to understand what it takes to be a catalyst to the best economic driver the world has ever known."
-Tim Draper, managing director, Draper Fisher Jurvetson

"Jeffrey Bussgang offers practical advice about raising venture capital from the right people at the right time for the right project. The book is insightful for entrepreneurs and venture capitalists alike."
-William A. Sahlman, professor, Harvard Business School and coauthor, New Business Ventures and the Entrepreneur

"This book is excellent. It is not only a great read (I couldn't put it down) but also extremely informative on the process and the whole larger system in which VCs and entrepreneurs operate."
-William Aulet, managing director, MIT Entrepreneurship Center

"Bussgang's compelling book provides endless insights into the global world of venture capital. The discussions about China are particularly noteworthy. It is very valuable reading for entrepreneurs who aspire to scale their business into long-term leading enterprises."
-Jim Breyer, Managing Partner, Accel Partners

"Jeff Bussgang has written the definitive book on how venture capital works. I've read a lot of books on this subject, was an entrepreneur for 10 years and have been a VC for 15 years. Jeff's book is by far the best to date on this subject."
-Brad Feld, Managing Partner, Foundry Group

"There are tons of books to help entrepreneurs understand things like accounting, marketing, and sales. But until now you were left to fend for yourself to grasp the insider game of venture capital funding. Read this book right now so you can look your potential VC in the eye with confidence."
-David Meerman Scott, bestselling author of The New Rules of Marketing & PR

From the Author

I wrote this book to demystify the VC world for entrepreneurs, having seen both sides over many years.

I hope the book will help entrepreneurs level the playing field when pursuing VC capital so that they can secure the necessary resources to achieve their vision.  In the book, I reveal industry insights drawn from my experience as a practicing VC.  I also include the perspectives of some of the leading entrepreneurs and VCs in the industry, who were kind enough to divulge their own secrets about their approach to the business. I wrote the book not only to share this knowledge, but also because I strongly believe in the importance of the venture-backed start-up to our economy and our society as a whole.

Over the next decade, hundreds of billions of dollars will be invested in new or young companies and it is critical that this capital be invested wisely.  Mastering the VC Game will help entrepreneurs be more effective in financing and launching start-ups and in creating companies that benefit us all, while also providing insight into the critical role these enterprises play in the global economy.

I wrote this book to promote entrepreneurship, not make money.

Therefore, I have chosen to donate a portion of my proceeds to Endeavor, a non-profit dedicated to transforming emerging market economies through entrepreneurship.  Founder/CEO Linda Rottenberg was a college classmate of mine with whom I did volunteer work in Boston's inner city schools and I have always admired her passion for helping others help themselves.  Endeavor entrepreneurs have created over 38,000 jobs throughout the world.  To learn more visit endeavor.org.

See all Editorial Reviews

Product Details

• Hardcover: 256 pages
• Publisher: Portfolio Hardcover; First Edition edition (April 29, 2010)
• Language: English
• ISBN-10: 1591843251
• ISBN-13: 978-1591843252
• Product Dimensions: 6 x 0.9 x 9 inches
• Shipping Weight: 1 pounds (View shipping rates and policies)
• Average Customer Review: 4.7 out of 5 stars  See all reviews (83 customer reviews)
• Amazon Best Sellers Rank: #311,457 in Books (See Top 100 in Books)

More About the Author

Jeffrey Bussgang is a General Partner at Flybridge Capital Partners, an early stage venture capital firm with more than $500 million under management. Prior to becoming a venture capitalist, he was a successful serial entrepreneur for ten years and the co-founder of Upromise. He also serves as an Entrepreneur in Residence at Harvard Business School, where he earned an MBA with highest distinction. Bussgang writes a popular blog, www.SeeingBothSides.com and lives in the Boston area with his wife and three children. The book website can be viewed at www.JeffBussgang.com.

Most Helpful Customer Reviews

58 of 61 people found the following review helpful

2.0 out of 5 stars Great Potential, Poor Execution September 9, 2010

By Alex

Format:Kindle Edition|Amazon Verified Purchase

This book could have been a definitive work but it misses the mark on it's title promise, "Mastering the VC Game". It should have been titled, "A general introduction to venture capital." The table of contents laid out a wonderful road map that promised answers on what we entrepreneurs care about most. But when you get into the book, it was unsatisfying and provided fewer answers than what could be found in a cursory blog search. Specifically, the book seemed mostly focused on reconciling the underlying motivations for VCs and Entrepreneurs. The motivations for Entrepreneurs was interesting but, given the likely reader of this book, ran long. The motivations for VCs was more enlightening, especially around deal terms, but was presented too generally to be truly valuable. You can't fault the author here because frankly all VCs are different.

Where the book really missed out on great opportunities to help entrepreneurs "Master the VC game" is the discussions around actually raising the money. Here too, he speaks in anecdotes and generalities, and doesn't share any real best practices.

For example, on pitching: He does a great job of highlighting the importance of finding the right person where you feel your idea is in their sweet spot. But what goes into a pitch? What should you focus on most in your first meeting? How do you create and deliver a compelling story? What are common pitching pitfalls? These questions have good answers but none of these were explored much and instead he provides general thoughts on being passionate and prepared. Good answers to these some of these questions are covered in Jerry Weissman's Presenting to Win.

Another example of an important missed on opportunity is on how much money to raise. A critical decision that very few people have good grasp on. It is skimmed over here and presented as a trade off between capital and exit options. A valid and valuable lesson. But there are a few important nuances not covered. First, how the capital you raise actually impacts your pre-money valuation for many firms which means that your dilution is not linear depending on how much you raise. Nor is there any mention of what investors may look for at different stages of investment. To be fair, these are REALLY hard issues to be declarative on but there should have been an exploration of them.

And what about actually playing the VC game? How do you manage the process? Do you hit 30 all at once? Do you start with a few throw aways and then work your way up to the big boys? Do you get one going and then leverage him to speed up or pressure others? How long should we expect to be raising? When should we step back and reevaluate? When and how should you re-approach someone who said no?

A bright spot in the book was discussion around terms. He gave a good breakdown and made the most important recommendation-- get a good lawyer. But even here, most of the content could be easily found on VC blogs.

Overall, well written and a good intro to the world of VC. But this book is not an entrepreneur's guide to Mastering the VC game.

10 of 10 people found the following review helpful

5.0 out of 5 stars Incredibly Insightful Look into the World of VC April 29, 2010

By Victoria Song

Format:Hardcover|Amazon Verified Purchase

This book offers valuable insights for anyone interested in the venture capital process, entrepreneurs and VCs alike. If you'd like to better understand how VCs think, this is definitely the book to read. There are great anecdotes interspersed throughout, which makes it a fun and quick read--I read the whole book in a part of one day. Bussgang shares his in-depth knowledge through stories of successful entrepreneurs such as the founder of Twitter, Jack Dorsey; founder of LinkedIn, Reid Hoffman; and founder of Constant Contact, Gail Goodman, one which I personally found inspiring.

What I appreciate most about the book is the great advice and wisdom that Bussgang offers, not just from his personal experiences, but also from those of his colleagues and mentors. By openly exploring the VC process through captivating accounts of entrepreneurs and VCs, Bussgang shows that finding the right VC-Entrepreneur partnership is not only essential, but can also feel like a match made in heaven. If that's the kind of partnership you're interested in making now or ever, this is definitely the book to read.

Mastering the VC Game really is the only book of its kind.

12 of 14 people found the following review helpful

1.0 out of 5 stars Good topic ... May 28, 2010

By R

Format:Hardcover

... but > 75% of the reviews are by people who have only reviewed this one book ever. This kind of a slant always makes me wonder if these are legit or are written for purposes of kissing up.