|
Private Equity and Venture Capital firms are in the business of generating a high rate of return for their investors, not in creating or building businesses. It is clear that the objectives of the VC fund are rarely the same as the entrepreneur seeking venture capital. It is only when the entrepreneur understands that he or she has to tailor the venture to meet the requirements of the VC fund and not the other way around that the parties have a real chance of succeeding. The objective of this book is to show the entrepreneur how they can create a business that assists the VC fund achieve its objectives. In doing so, there is a high probability of raising VC finance. Venture capital is not for everyone no matter how profitable the venture might be. VC funds are not in the business of solving an entrepreneur's need for funding albeit that may be the outcome. They are simply there to achieve a high rate of return for their investors or limited investment partners. The entrepreneur that understands this and builds a proposal to meet that objective, should be much more successful in gaining venture capital finance without compromising the underlying business. |
|
||
|
Venture Capital is a unique form of finance that involves a negotiated investment in a privately held business. It involves significant restrictions on the freedom of the entrepreneur while at the same time offering support with developing the business. But watch out if things go wrong - VC firms are quick to replace management and, if necessary, sell off the business to recover their investment. The book covers the impact of taking the money on the management of the business, the manner in which the business should be prepared for due diligence and for a subsequent involvement by the VC firm. Understanding what it takes to be attractive to a VC firm is essential in preparing the business for VC investment. This section of the book covers what it means to have a compelling business concept as well as how to construct a robust exit strategy. The book includes a detailed step by step action plan template
for raising venture capital.
Chapters in the book include:
Finding the Money opens up the doors of the Venture Capital funds to the smart entrepreneur. Raising venture capital is a mystery for most emerging businesses and the vast majority will never get the opportunity to participate in the huge amounts of funds now available for private equity investments. This book sets out a practical and proven process that enables the high growth entrepreneurial business to successfully raise venture capital. Most business owners mistakenly believe that venture capital is just another form of finance albeit for higher risk investments. They think the objective of venture capital is to help them build their business. They are wrong! The purpose of venture capital is to allow investors the opportunity to invest in higher risk emerging company investments to achieve a higher return on their money than if they invested in the stock market. Because the investment is being made in a private company and they are often dealing with an immature management team, an emerging market and products that still have to prove themselves, they invest under an active management process. This provides support for the entrepreneurial team but also allows the venture capital firm to intervene to correct a situation going bad. They are able to replace management, change the shareholding of the founders and, if necessary, sell off the business to correct the situation. Finding the Money explains how the venture capital industry operates and identifies the impact on the founders and the business of having a venture capital investment. A set of investment criteria for venture capital is set out that can enable the entrepreneur to find out whether his or her business could be successful in raising venture capital. Few businesses are able to meet the investment criteria but for those that can, this book sets out a step-by-step process for raising the money. "The money is there in venture capital as never before. It is a matter of understanding the processes and desired outcomes. This can be done but only by aligning the interests of the entrepreneur and the management team with the objectives of the venture capital firm. Then it can be a genuine win-win." Dr McKaskill is a successful serial entrepreneur who has raised venture capital twice, once in the UK and once in the USA, and knows just how the process works. His experience over the past few years on teaching entrepreneurs has assisted him in developing a clear and easy to understand explanation for how venture capital works, what ventures best suit this sort of investment and how the entrepreneur should approach the equity raising activity. Finding the Money offers the entrepreneur advice on - WHY SEEK VENTURE CAPITAL? IS IT WORTH IT? HOW DO I FIND OUT IF I HAVE THE RIGHT OPPORTUNITY FOR
A VC FIRM? WHAT DO I HAVE TO DO TO RAISE VENTURE CAPITAL? WHAT WILL VENTURE CAPITAL DO TO MY BUSINESS? WHAT HAPPENS IF YOU DON'T MEET THE PERFORMANCE TARGETS?
TESTIMONIALS: Compulsory reading for all start-up businesses, particularly
those seeking private or venture capital to grow, who need
to provide a clear exit pathway for the investors and shareholders."
"a bible for the beginner and a must read for both Investee
and Investor"... "Raising and using capital wisely is usually the difference
between success and failure. Tom provides you with a systematic
approach for wise decisions. An entrepreneur only gets a few
chances to pitch a venture capital group. This book will prepare
you and significantly enhance your opportunity to receive
funding. This book is a "must read" for the entrepreneur
who wants to leverage other people's money. Tom provides you
with a systematic approach to raising venture capital." "Simple, straightforward and practical advice that speaks
directly to the entrepreneur"
|
||||
 |
 |
|||
|
© Tom McKaskill 2007
|
||||