Raising Venture Capital for the Serious Entrepreneur
Preface
Introduction
Crediitica, Inc. Case Study
Section A: Understanding the Basics of the Venture Capital Method
1. Developing a Financing Map
2. Getting to the First Stepping Stone
3. The Unique Cash Flow and Risk Dynamics of Early Stage Ventures
Section B: Raising the Finance
4. Determining the Amount of Capital to Raise and What to Spend It On
5. Getting Behind How Venture Capital Firms Think
6. Creating a Winning Business Plan
Section C: Valuing the Early Stage Venture
7. Funding Early-Stage Companies
Section D: Negotiating the Deal: Term Sheets
8. Agreeing a Term Sheet with a Venture Capitalist
9. Terms for Splitting the Rewards
10. Allocating Control Between Founders/Management and Investors
11. Aligning the Interests of Founders/Management and Investors
Section E: Exercises
12. Term Sheet Exercises
Appendix A
Appendix B
Have the negotiating edge when getting your new business off the ground
Written by Dermot Berkery, an internationally known venture capitalist with Delta Partners, this complete toolbook thoroughly details how venture capitalists arrange the financing for a company; what they look for in a business plan; how they value a business; and how they structure the terms of an agreement. Within its pages, you'll find everything you need to successfully raise new business capital with the most attractive terms possible.
Using informative case studies, detailed charts, and term sheet exercises, Raising Venture Capital for the Serious Entrepreneur discusses the basic principles of the venture capital method, strategies for raising capital, methods of valuing the early-stage venture, and proven techniques for negotiating the deal. The author leads you step-by-step through:
- Developing a Financing Map
- Getting to the First Stepping Stone
- Understanding the Unique Cash Flow and Risk Dynamics of Early Stage Ventures
- Determining the Amount of Capital to Raise and What to Spend It on
- Learning How Venture Capital Firms Think
- Creating a Winning Business Plan
- Funding Early-Stage Companies
- Agreeing on a Term Sheet with a Venture Capitalist
- Setting Terms for Splitting the Rewards
- Allocating Control between Founders/Management and Investors
- Aligning the Interests of Founders/Management and Investors
This invaluable guide also includes term sheet exercises that test your understanding of various financing situations facing companies. In addition, the book features three extensive case studies: the first covering a fictional start-up company used throughout the book, the second offering a stepping stone map, and the third presenting a term sheet used in practice by venture capitalists.