Understanding Venture Capital
By Earl Smith
()
Currently unavailable
Currently unavailable
About this ebook
The money chase has been the death of many good companies. There are a range of reasons why this is so. Some companies simply do not deserve funding - they are not an attractive investment opportunity. Others embark on the money chase too early. They haven’t established the business base to justify funding. Still others are run by people who seem to like the money chase better than running the business. All of these reasons and more make embarking on the search for venture funding a perilous business which risks your company and all it may become.
Over the years, I have worked with a large number of companies and management teams that have sailed these choppy seas. I’ve written this book to let you in on some of the knowledge - sometimes hard won - that I have accumulated.
I would be the first to admit that the challenges of getting funded are beyond the scope of this, or any other, book. My intention from the beginning has been to introduce an idea which I have found highly useful - that of "investment grade". My purpose has been to help founders see their company from the perspective of the investor and realize that that view is significantly different from the one they normally have.
Over and over again I encounter founders who have developed significant animosity towards investors. It's easy to find postings on the various social media sites that reflect this animosity. I recently came across one such thread in which the poster spent a great deal of time denigrating investors. Given that this individual was an entrepreneur who was seeking funding, the behavior seemed counterproductive at minimum and self sabotaging. In fact contrary to what this individual was stridently contending, most investors are not stupid, Machiavellian, overbearing, dishonest or any of the other additives that this person was running around. I know a great deal about investors because I do a great deal of work with them. None of them match the description that this individual was putting forth.
The base fact is that the perspective of an investor is fundamentally different than that of a founder. But there is a collateral fact that is important. At critical times in the growth of the company these two different perspectives need each other. The company needs the financial resources in order to unlock the value that the founders have built up. Without those resources, the company will be in a substantial competitive disadvantage and likely will not realize its full potential.
So an accommodation between founders and investors is a gateway through which a company can progress to a greater future. Founders who realize this and are able to reach such an accommodation are the ones who end up running rapidly growing companies. If there is a lesson that I would like to leave you with, it is this:
Learn to understand the attitudes approach and objectives of an investor, except them as legitimate and honest reflections and then approach them in a professional manner, addressing their legitimate concerns and meeting them more than halfway on the journey towards mutual interests.
Earl Smith
Rev. Earl Smith became the youngest chaplain ever hired by the California Department of Corrections when he was asked to become the chaplain at San Quentin in 1983. In 2000, Earl was named National Correctional Chaplain of the Year. He currently serves as chaplain for the San Francisco 49ers and the Golden State Warriors. He has appeared on HBO, CNN, The 700 Club, Trinity Broadcasting and the Discovery Channel, and has been featured in Newsweek and Time. He was born and raised in Stockton, California, where he lives today with his wife, Angel, and their children Ebony, Earl Jr., Tamara, and Franklin.
Read more from Earl Smith
Way Down in the Hole: Race, Intimacy, and the Reproduction of Racial Ideologies in Solitary Confinement Rating: 0 out of 5 stars0 ratingsDeath Row Chaplain: Unbelievable True Stories from America's Most Notorious Prison Rating: 4 out of 5 stars4/5Prisoner Reentry and Social Capital: The Long Road to Reintegration Rating: 0 out of 5 stars0 ratingsWorkism: The Postmodern Curse: The Arc of Generations Rating: 0 out of 5 stars0 ratingsSyncopated Singularity Rating: 0 out of 5 stars0 ratingsBusiness Development Rating: 0 out of 5 stars0 ratingsBusiness Development: The Path to Profits Rating: 0 out of 5 stars0 ratingsThe Cabal Trilogy Rating: 0 out of 5 stars0 ratingsZen Sense Rating: 0 out of 5 stars0 ratingsCollected Articles and Essays Rating: 0 out of 5 stars0 ratingsCollected Articles and Essays Volume Two Rating: 0 out of 5 stars0 ratings
Related to Understanding Venture Capital
Related ebooks
Take the Money and Run! An Insider's Guide to Venture Capital Rating: 5 out of 5 stars5/5Exit Right: How to Sell Your Startup, Maximize Your Return and Build Your Legacy Rating: 0 out of 5 stars0 ratingsThe Six Secrets of Raising Capital: An Insider's Guide for Entrepreneurs Rating: 4 out of 5 stars4/5Be Your Own VC: 10 Bootstrapping Principles to Generate Cash and Keep Control Rating: 0 out of 5 stars0 ratingsProperty Profits: A Lazy Investor's Guide to Making Money in Real Estate Even if You Don't Have Time or Patience for All the B.S. Rating: 0 out of 5 stars0 ratingsOther People's Money: The Basics Rating: 0 out of 5 stars0 ratingsHow to Get Funding For Your New Product Idea Rating: 5 out of 5 stars5/5Startup Granules Rating: 0 out of 5 stars0 ratingsHow To Raise Collaborative Angel CAPITAL For Internet Business Startup Rating: 5 out of 5 stars5/5Complete Venture Capital Guide for Startups Rating: 0 out of 5 stars0 ratingsCorporate Venturing: Accelerate growth through collaboration with startups Rating: 0 out of 5 stars0 ratingsSaleshood: How Winning Sales Managers Inspire Sales Teams to Succeed Rating: 0 out of 5 stars0 ratingsBusiness Invention: Business Invention Rating: 0 out of 5 stars0 ratingsAdventure Capital: A Cautionary Tale of the Venture Capital Circus and the Clowns That Run It Rating: 0 out of 5 stars0 ratingsShow Me Your Money Idea Rating: 0 out of 5 stars0 ratingsA Simple Guide to Buying a Franchise: Questions you should ask, but franchisors would rather you did not Rating: 0 out of 5 stars0 ratingsCollege Planning Consultant Business: Step-by-Step Startup Guide Rating: 0 out of 5 stars0 ratingsYour Amazing Itty Bitty(R) Mastering The Back Office Book Rating: 0 out of 5 stars0 ratingsIterative Business Model Canvas Development - From Vision to Product Backlog: Agile Development of Products and Business Models Rating: 0 out of 5 stars0 ratingsWiser | The Definitive Guide to Starting a Business After the Age of 50 Rating: 0 out of 5 stars0 ratingsHow to Market, Advertise and Promote Your Business or Service in Your Own Backyard Rating: 0 out of 5 stars0 ratingsFounder to Founder: Tips and tales from 100 entrepreneurs and investors Rating: 0 out of 5 stars0 ratingsCrowdfunding: A Guide to Raising Capital on the Internet Rating: 0 out of 5 stars0 ratingsBusiness Strategy Innovation A Complete Guide - 2020 Edition Rating: 0 out of 5 stars0 ratingsFunding & Exits Rating: 0 out of 5 stars0 ratingsPerformance of Private Equity-Backed IPOs. Evidence from the UK after the financial crisis Rating: 0 out of 5 stars0 ratingsTouchdown Finance: Personal Finance Tips from the Pros Rating: 0 out of 5 stars0 ratingsStartups A Complete Guide - 2020 Edition Rating: 0 out of 5 stars0 ratings8 Steps Away From Becoming a Millionaire: Growth Series, #1 Rating: 0 out of 5 stars0 ratings
Small Business & Entrepreneurs For You
The Millionaire Fastlane: Crack the Code to Wealth and Live Rich for a Lifetime Rating: 5 out of 5 stars5/5Your Next Five Moves: Master the Art of Business Strategy Rating: 5 out of 5 stars5/5Starting a Business All-In-One For Dummies Rating: 4 out of 5 stars4/5The Ultimate Side Hustle Book: 450 Moneymaking Ideas for the Gig Economy Rating: 4 out of 5 stars4/5Small Business For Dummies Rating: 4 out of 5 stars4/5The Side Hustle: How to Turn Your Spare Time into $1000 a Month or More Rating: 4 out of 5 stars4/5The Freedom Shortcut: How Anyone Can Generate True Passive Income Online, Escape the 9-5, and Live Anywhere Rating: 5 out of 5 stars5/5How to Think Bigger: Aim Higher, Get More Motivated, and Accomplish Big Things Rating: 4 out of 5 stars4/5Summary of Timothy Ferriss' book: The 4-Hour Workweek: More time, more money, more life: Summary Rating: 5 out of 5 stars5/5The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About It Rating: 4 out of 5 stars4/5The Bitcoin Standard: The Decentralized Alternative to Central Banking Rating: 4 out of 5 stars4/5The Start Your Own Business Bible: 501 New Ventures You Can Launch Today Rating: 4 out of 5 stars4/5HBR Guide to Buying a Small Business (HBR Guide Series) Rating: 5 out of 5 stars5/5Yes!: 50 Scientifically Proven Ways to Be Persuasive Rating: 4 out of 5 stars4/5How to Open & Operate a Financially Successful Notary Business Rating: 4 out of 5 stars4/5Creative, Inc.: The Ultimate Guide to Running a Successful Freelance Business Rating: 4 out of 5 stars4/5Dream Big: Know What You Want, Why You Want It, and What You’re Going to Do About It Rating: 4 out of 5 stars4/5Robert's Rules of Order: The Original Manual for Assembly Rules, Business Etiquette, and Conduct Rating: 4 out of 5 stars4/5Feck Perfuction: Dangerous Ideas on the Business of Life Rating: 4 out of 5 stars4/5Company Rules: Or Everything I Know About Business I Learned from the CIA Rating: 4 out of 5 stars4/5Without a Doubt: How to Go from Underrated to Unbeatable Rating: 4 out of 5 stars4/5Bookkeeping: An Essential Guide to Bookkeeping for Beginners along with Basic Accounting Principles Rating: 4 out of 5 stars4/5Built to Last: Successful Habits of Visionary Companies Rating: 4 out of 5 stars4/5Never Get a "Real" Job: How to Dump Your Boss, Build a Business and Not Go Broke Rating: 4 out of 5 stars4/5Bending Reality: How to Make the Impossible Probable Rating: 5 out of 5 stars5/5
Reviews for Understanding Venture Capital
0 ratings0 reviews