Hardcover: 288 pages
Publisher: Wiley; 1 edition (January 13, 2014)
Language: English
ISBN-10: 1118551982
ISBN-13: 978-1118551981
Product Dimensions: 5.3 x 1 x 7.3 inches
Shipping Weight: 9.6 ounces (View shipping rates and policies)
Average Customer Review: 4.8 out of 5 stars See all reviews (10 customer reviews)
Best Sellers Rank: #962,112 in Books (See Top 100 in Books) #161 in Books > Business & Money > Finance > Corporate Finance > Venture Capital #6579 in Books > Business & Money > Small Business & Entrepreneurship > Entrepreneurship #6732 in Books > Business & Money > Investing
The book is a comprehensive review of the venture capital industry and provides insights for investors on how to participate in it; it also offers interesting advice for fund managers in raising capital and improving the investment process. Lou Gerken is at ease in explaining success stories and failures, and shows how to learn from both. However, one area where the book doesn’t go deep enough is whether investing in venture capita funds is today worth the associated risks: the only statistical evidence offered is a single page summary of returns prepared by Cambridge Associates but those statistics are biased because they do not include the negative returns of the funds that failed and also are deeply affected by the selection of the reference periods and of the benchmarks. If it was possible to access the internal statistics of some of the largest investors, such as CALPERS (more than € 60 billion invested in hundreds of private equity and venture capital funds in a period of 20 years), one could have a truer view of the trend in average returns to investors because they are based on hundreds of investments of different vintages; those statistics normally show that in recent years (i.e. after 2004) the returns have decreased to the point that, considering the risk involved in venture capital and private equity, it may no longer be wise to invest in that sector. The venture capital and private equity professionals, both on the side of the limited partners and of the general partners, obviously do not share that view, which would mean the end of their jobs; they claim that recent results are affected by the J curve (i.e.
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