Paperback: 448 pages
Publisher: FT Press; 1 edition (November 1, 2001)
Language: English
ISBN-10: 0130654930
ISBN-13: 978-0130654939
Product Dimensions: 6 x 1.1 x 8.9 inches
Shipping Weight: 1.6 pounds (View shipping rates and policies)
Average Customer Review: 3.7 out of 5 stars See all reviews (23 customer reviews)
Best Sellers Rank: #559,463 in Books (See Top 100 in Books) #98 in Books > Business & Money > Finance > Corporate Finance > Venture Capital #420 in Books > Textbooks > Business & Finance > Entrepreneurship #781 in Books > Textbooks > Business & Finance > Finance
Rather than Silicon Valley technopreneurs, this plain-English book is oriented toward Main Street small business operators. Within those confines, the author actually does a diligent job of demystifying the interaction with potential investors, explaining the fundamental process, and breaking down the deal documents into understandable components.Is this the right book for you? Judge for yourself, from the following excerpts:- Number 2 on the list of Ten Things Not To Say to a venture capitalist: "Some friends and I ... purchased the franchise to a doughnut operation. I am putting $25,000 of my money into the deal through a second mortage on my house, and my wife and I are going to help operate the doughnut shop."- Put the financial history in columnar format.Readers who find such caliber of advice instructive, are taught to negotiate and structure collateralized loans with equity kickers, typically denominated in the hundreds of thousands.If your needs lie on a different plane, obviously you should look elsewhere.
I am in the process of investing in a start up and found Mr. Gladstone's advice invaluable to the investor. He describes succinctly, in bullet form, the conditions that an investor should lay down for the owner when offering to invest. Most helpful was his point that the investment is a loan AND a stock deal, and how to structure both. He also provides a rule of thumb for how much of a company the investor can ask for given the value of a company. And he reinforces the point that the investor can make 12-15% a year on the stock market,(even more today), so to invest in a venture that is almost by definition riskier will require some serious multiples. This was all in all a very helpful book to the investor. I did not find the book so helpful in finding and nurturing outside sources of money, which was what I was originally interested in, but now that I have invested some of my own money, the book is extremely valuable.
I read and used the first edition of this book in 1983 and since then have used it in raising $27 MM in equity financing for four companies. In addition, it has served as the basis for a short term course in "Raising Equity Capital" for start-up companies. One of the business plans based on this book was regarded as "one of the best seen" by VC companies around the country. I highly recommend it for the novice and the professional.
Dear Mr. Gladstone,With your help, I have written a business plan that presents my ideas, my projections and vision of my new business in a professional and unique manner. Thank you!I purchased your Venture Capital Handbook about 8 months ago and completed my business plan in about 30 days. I presented it to two venture capital firms and both firms showed an immediate interest.I have found out the financing process is very lengthy and fustrating and have not yet received any funds. The good news is that the VC's are getting close to consumating the partnership with funds up to $7,000,000.00. Meanwhile, I am always looking for a back up.Your book has given me the best and easiest guidance in assembling a plan anyone could ask for. I have recommened it to others that are seeking funding and use the book for reference purposes.Although I am a novice at writting a business plan, I feel that I have completed something that will one day be the most valuable document I have ever written.Thanks again and I hope you e-mail you with good news soon.Tom Metroyanis
Not long ago, venture capital was a cottage industry and little information was available for entrepreneurs to get prepared prior to raising capital from VC firms. Gladstone was among the first authors to demystify Venture Capital and explain the process step by step, in plain English.Although sometimes superficial, this book is a classic (which justifies the 4th star). Since 1988, it has been a good introduction to the venture capital process written for entrepreneurs. Over the years, many venture capital colleagues borrowed it from my bookshelves too.Whether your are an entrepreneur in the US or in Europe, the process it describes is fundamentally what you are going to face.
I returned this book for a refund. It contains no more information about the VC business or getting VC funding that can be found on the Internet. It lacks the details about valuations, company structure, business plans, financing and other processes that one needs to understand before starting a company and going for funding. The advice given is so obvious, that one might think the process is easy. Most VC companies provide advice and information on their web sites and this book provides no additional value to what is already present.
In all of my study of raising venture capital, this is the first book, in over 4 years of searching, that was able to answer all of my questions. My only fault with it is that it is over 10 years old. I wish David would update it to include information on the Internet economy.Other than that, a solid book! If you are serious about going after venture capital, BUY IT AND WORK THIS BOOK!!!
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