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    Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist
    Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist
    Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist
    Audiobook7 hours

    Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist

    Written by Brad Feld and Jason Mendelson

    Narrated by Sean Pratt

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    About this audiobook

    As each new generation of entrepreneurs emerges, there is a renewed interest in how venture capital deals come together. Yet there really is no definitive guide to venture capital deals. Nobody understands this better than authors Brad Feld and Jason Mendelson. For more than seventeen years, they've been involved in hundreds of venture capital financings, and now, with Venture Deals, they share their experiences in this field with you.

    Inspired by a series of blog posts-created by the authors after a particularly challenging deal-this reliable resource demystifies the venture capital financing process and helps you gain a practical perspective of this dynamic discipline.

    Whether you're an experienced or aspiring entrepreneur, venture capitalist, or lawyer who partakes in these particular types of deals, you can benefit from the insights found throughout this book.

    Engaging and informative, Venture Deals skillfully outlines the essential elements of the venture capital term sheet-from terms related to economics to terms related to control. Feld and Mendelson strive to give a balanced view of the particular terms along with the strategies to getting to a fair deal.

    In addition to examining the nuts and bolts of the term sheet, Venture Deals also introduces you to the various participants in the process, discusses how fundraising works, reveals how VC firms operate, and describes how to apply different negotiating tactics to your deals. You'll also gain valuable insights into several common legal issues most startups face and, as a bonus, discover what a typical letter of intent to acquire your company looks like.

    While it would be desirable to do venture capital deals with a simple agreement on price, a handshake, and a short legal agreement, this rarely happens. Venture Deals reveals how venture financings really work, and will save you a remarkable amount of time and money in your journey to create an amazing company.
    LanguageEnglish
    PublisherAscent Audio
    Release dateSep 6, 2011
    ISBN9781596599659

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      * Lead investors tend to contribute a majority of capital in a round* There are all kinds of VC funds—make sure you’re talking with a fund that specializes in your sector and stage (seed, growth, late-stage)* Your VC has raised money just like you have—General Parters generally contribute 1%-5% of a fund, with Limited Partners contributing the rest* Ask your VC their strategy for follow-on funding (the pool of funding they have set aside to participate in future rounds)* Make sure you’re talking with a decision maker at the fund before getting your hopes up—usually a General Partner* When coming into negotiations, choose a few key fundamentals and be willing to compromise on the rest, as well as knowing at what threshold you should step away from the deal* Most VC funds last anywhere between 10 and 17 years; if your VC invests, this is the beginning of a long relationship (and is about a lot more than the money)* VCs will do everything they can to gain control over key decisions in the future of your company while having a minority stake* Make sure you understand all of the terms in your note; there are dozens of industry-specific terms that can have a lot of bearing on the future of your company; also understand what terms matter and what terms don’t. Don’t sign anything you don’t understand.* Don’t propose a term sheet/price to a VC; let them play their hand first and negotiate from there* Never tell a VC who else you’re talking to, unless you want them to form a syndicate* Your lawyer is a reflection of you. An excellent lawyer is worth every penny.