The Little Book of Venture Capital Investing by Gerken, Louis C. -- Read -- Imperial Library of Trantor

Index

Cover Contents Title Copyright Dedication Acknowledgments An Introduction to Venture Capital Investing Chapter One: An Historic Overview of Venture Capitalism

In the Beginning The Roots of Venture Capital The First VCs Shockley Chooses Silicon The Traitorous Eight Why Was the Venture Capital Method of Investing Chosen? Past Is Prologue

Chapter Two: The VC Industry Today

Adventures in VC Investing How It All Began The MoneyTree Report Geographical Definitions Industry Classifications Sector Definitions Cooking the Soup Outstanding Venture Capital Firms If It Was Easy . . .

Chapter Three: The Value Proposition

The Multiplier Effect of Venture Capital Water, Water Everywhere Economy and Jobs Impact More Economic Benefits Start-Up Business Benefits Social Benefit of New Technology and Innovation Medical Innovations Casual Games 3D Printing Orbital in Orbit Social Media Cyborgs Future of the Car The Cashless Society Robodiptera Financial Benefits to Investors The Power of VC’s Multiplier Effect Sowing the Seed

Chapter Four: Prevailing Investment Climate

View of Prevailing Investment Climate The Size of Government Debt The Deficit Simpson-Bowles Discretionary Caps Federal Health Spending Additional Spending Cuts Tax Reform Accountability Give Us Only What We Need Changing with the Times How Investment Climate Affects Start-Ups and Job Creation Why Is Entrepreneurship Still Declining in the United States? Policies for a Vibrant VC Sector Tax Policy for Long-Term Investments A Vibrant Capital Markets System Research Funding for America’s Innovation Economy Immigration and Workforce Recruiting Health Care and Medical Innovation Energy and Clean Technology Cyber Security and Intellectual Property Protection Summary

Chapter Five: Field Guide for VC Investing Options—Nonlisted

Alternative Investments and Venture Capital Traditional Stages of Venture Capital Financing The Seed Stage The Start-Up Stage Expansion Stage—Second Round Financing Expansion Stage—Third Round Financing The Bridge/Pre-Public Stage Traditional VC Funds Active in 2012 The Common Denominator Alternatives to Traditional Venture Capital Funds

Chapter Six: Investment Options—Listed

Private Equity Exchanges PIPEs—Private Investments in Public Equities Corporate Venture Capital (CVC) Listed Spin-Offs Listed Venture Capital Funds Tradable Venture Capital Mutual Funds Listed PE Funds or BDCs

Chapter Seven: Investment Process—Sourcing and Screening

Private Placement Memorandum (PPM) Relationships Really Do Matter The GP’s Network What a VC Wants Searching High and Low It Starts at “Hello . . .”

Chapter Eight: Investment Process—Due Diligence and Selection

LP Due Diligence of the VC Dimensions of a Great GP The Truth and Nothing but the Truth Getting to the First Close The Limited Partnership Agreement (LPA) Subscription Agreement Best Intentions What Do You Have under the Hood? Business Plan or Business Model? The Stark Reality of the Post-2008 Landscape What’s It Worth? A Seat at the Table The Paperwork Final Word

Chapter Nine: Investment Process—Portfolio Construction, Monitoring, and Monetizing

Some Important Words on Portfolio Construction Monitoring Duties of a Board of Directors Communication Processes, Systems, Roles, and Responsibilities Course Adjustments Cut Losses Early Methods of Monetization Conclusion: Is VC Still Alive?

Appendix: Resources About the Authors