In this era of innovative business ideas, it has become almost an imperative to have the right kind of funding to be able to put these ideas into action. Fortunately, there are a number of wealthy investors who are willing to support these ventures by providing much-needed capital, hence the name “venture capital.”
However, there is often a higher level of risk involved in these start-ups or small businesses since they revolve around some novel business idea which might or might not work in the real world. On the other hand, they offer the prospect of much higher than average returns on investment, if the business idea clicks. For those interested, here we list some of the finest works produced on the subject that offer revealing insights into the exciting world of venture capital and start-ups.
Also, do checkout the key differences between Venture Capital and Private Equity
1) Private Equity Training 9 Course Bundle, 35+ hours
2) Private Equity and Venture Capital (Università Bocconi)
3) Valuation and Financial Analysis For Startups (Yonsie University)
4) Business and Financial Modeling (University of Pennysylvania)
Best Venture Capital Books
#1 – Venture Deals:
Be Smarter Than Your Lawyer and Venture Capitalist
by Brad Feld (Author), Jason Mendelson (Author), Dick Costolo (Foreword)
An excellent resource for entrepreneurs, venture capitalists as well as lawyers to acquire an in-depth understanding of the venture capital deal structure and strategies. This work presents a detailed view of what it takes to be a successful entrepreneur and decodes the venture capital term sheet for lay readers as well as professionals. The authors discuss useful strategies for entrepreneurs seeking venture capital, things that might go right or wrong along the way and what it means for those involved. Another interesting aspect is how individuals roles of people typically involved in a venture capital deal are defined, bringing an exceptional level of clarity to the work. An absorbing read for anyone interested in understanding nuances of how venture capital deals are made and unmade.
Offers a balanced perspective of venture capital and how entrepreneurs should strategize to be able to attract the desired funding while avoiding potential mistakes committed by start-ups. Not focused on a specific role, this work affords more a decentralized view of how things work out for entrepreneurs and venture capitalists depending on how a specific deal is structured. A recommended read for students, professionals, entrepreneurs as well as venture capitalists.Get it here >>
#2 – The Art of Startup Fundraising:
Pitching Investors, Negotiating the Deal, and Everything Else Entrepreneurs Need to Know
by Alejandro Cremades (Author), Barbara Corcoran (Foreword)
A brilliant exposition on how technological and regulatory changes have helped transform the startup landscape and what it means for entrepreneurs seeking venture capital to support their business ideas. This work builds up a strong case for online startup funding and how, in the light of new regulations, old rules for success in the field have lost much of their relevance. The author diligently analyses how startups can source funding at different stages of their development and why it is a must to identify the right investors for a venture. A stand-alone work that offers updated information on the trends and techniques for startup fundraising in the digital world.
Focuses on online sources of startup funding and addresses some of the fundamental issues associated with the same. The author helps reader understand that any funding is not necessarily a good funding and offers useful guidance on how to identify the ideal investors for a particular venture. On the whole, an excellent updated guide for entrepreneurs to better understand legal aspects and regulatory changes associated with digital fundraising.Get it here >>
#3 – The Entrepreneurial Bible To Venture Capital:
Inside Secrets from the Leaders in the Startup Game
by Andrew Romans (Author)
This phenomenal work offers a rare insight into the world of startup fundraising, encompassing an entire range of concepts from angel investing to venture capital and crowdfunding, while helping reader become acquainted with complex venture capital terminologies without breaking a sweat. Drawing on his years of professional experience, the author defines in clear terms what makes for a successful fundraising strategy and what do investors look for in a startup. This book is essentially meant for the curious at heart, exploring every aspect of the subject starting with why venture capital (VC) firms exist, how they function and how an entrepreneur needs to go about sourcing that much-needed VC funding. Extending the scope of this work, it also includes an extended treatment of building a successful business and making a successful business exit through M&A or other routes.
A highly recommended nuts and bolts guide on VCs, angel investing, crowdfunding and other sources of startup fundraising for entrepreneurs in the making. Stands apart for an easy-to-understand and almost conversational style of writing, which makes complex concepts accessible to the reader. Drawing on real-life examples, the author brings added practical value to this work.Get it here >>
#4 – Term Sheets & Valuations:
A Line by Line Look at the Intricacies of Term Sheets & Valuations (Bigwig Briefs)
by Alex Wilmerding (Author), Aspatore Books Staff (Author), Aspatore.com (Author)
An excellent practical guide for entrepreneurs and finance students to acquire a detailed understanding of the terminology employed in a venture capital term sheet and step-wise valuation. Seemingly limited in its scope, but that is what makes this of real practical value for readers who need to study a term sheet using appropriate valuation parameters. The authors describe West Coast and East Coast rules and offer a section-by-section treatment of a term sheet, using an actual term sheet from a leading law firm. In short, an immensely helpful guide for studying a venture capital term sheet in all its subtleties.
A comparatively brief treatise specifically aimed at helping the reader interpret a venture capital term sheet and valuation methodologies employed. Of great practical value and a must-read for entrepreneurs, executives, finance students and professionals.Get it here >>
#5 – Introduction to Private Equity:
Venture, Growth, LBO and Turn-Around Capital
by Cyril Demaria (Author)
A comprehensive work on the private equity market and how it is being reshaped in an increasingly interconnected global industry, leading to emergence of crowdfunding among other innovations in the field. The current second edition of this work focuses on the evolution of private equity in the post-credit crunch era and emerging challenges for the future. Providing a detailed insight into the structure and organization of private equity industry at large, the author proceeds to analyze industry segments including leveraged buy-outs, mezzanine financing, venture capital, turn-around capital, growth capital and fund of funds among others. An almost academic read offering a rare understanding of private equity as an industry.
Focused on past developments and future challenges for private equity as an industry, making it an ideal academic companion for those interested in acquiring a broader understanding of the subject. One of the few works offering a balanced perspective on how private equity functions as an industry and on the level of individual venture capital firms involved in valuation of private businesses for investment purposes. A recommended reference work for amateurs and professionals alike.Get it here >>
#6 – The Business of Venture Capital:
Insights from Leading Practitioners on the Art of Raising a Fund, Deal Structuring, Value Creation, and Exit Strategies (Wiley Finance)
by Mahendra Ramsinghani (Author)
A complete treatise on venture capital which explores various aspects of this field in a detailed and systematic manner. This work is divided in two parts, the first one aimed at simplifying the process of fundraising and help create a theoretical understanding of due diligence criteria for funds along with explaining technical terms while the second part focuses on the execution part. The author has also included interviews of twenty-five leading venture capitalists who have featured in the Forbes’ Midas List, enriching this work with practical insights of industry experts on what can make or break a venture capital deal. The people interviewed include Leading Limited Partners, Top Tier Capital Partners, Grove Street Advisors and Pension Fund Managers along with others. On top of it all, the companion website offers some useful tools and knowledge resources for the reader.
Offers exceptional practical value to the reader with a stepwise introduction to the underlying theoretical concepts related to venture capital and how to successfully apply them. Interviews of leading experts in the field make it an invaluable guide with useful insights and resources for finance professionals, venture capitalists and entrepreneurs. The companion website brings added value to the work. A commendable work on venture capital covering every aspect in a well structured manner along with expert insights.Get it here >>
#7 – Mastering the VC Game:
A Venture Capital Insider Reveals How to Get from Start-up to IPO on Your Terms,Kindle Edition
by Jeffrey Bussgang (Author)
A compelling work on how entrepreneurs should go about sourcing investments and identifying the right kind of investor to achieve what they set out to. The author asserts that any funding is a good funding ‘only’ if the goals of a venture capitalist and entrepreneur are carefully aligned, which can be a key element for any startup to succeed. Drawing on his experience of working on both sides of the venture capital game, he offers interesting insights and anecdotes on the subject and shares experience of other experts as well in the form of interviews of some of the most noted individuals in the field, including Twitter’s Jack Dorsey and LinkedIn’s Reid Hoffman. In short, a complete guide for entrepreneurs on how to strike the right chord with investors and enter a good partnership.
An insightful guide for entrepreneurs seeking venture capital for their startups and the do’s and don’ts they need to adhere to when identifying the right investor. The author brings additional value to the work with his and others’ experience and detailed insights on how to create the perfect pitch for the right investor and enter a mutually beneficial partnership. A must-read for entrepreneurs and finance professionals to understand the intricacies of venture capital game.Get it here >>
#8 – Venture Capital For Dummies
by Nicole Gravagna, Peter K. Adams
A complete beginner’s manual on entrepreneurship and startup fundraising. The fundamentals of venture capital are explained in an easy-to-understand language along with commonly used technical terms. Entrepreneurs can learn how to get a business going and develop it into a potentially attractive investment for venture capitalists. It’s simple yet highly structured approach to the subject can be immensely useful for readers not acquainted with key terms and concepts in the field of venture capital. A highly recommended guide for anyone interested in learning the basics of venture capital.
Offers a wealth of information on venture capital, startup funding and technical terms employed in the venture capital term sheet and valuations. The authors have presented the fundamentals with an almost exceptional level of clarity, making it easy enough for any entrepreneurs to understand what they need to do in order to get the desired funding and succeed as a business.Get it here >>
#9 – The Crowdfunding Handbook:
Raise Money for Your Small Business or Start-Up with Equity Funding Portals
by Cliff Ennico (Author)
A masterful treatise on crowdfunding, one of the most innovative funding avenues for startups and small business ventures, which finally took off in a big way with the implementation of JOBS Act. Realizing the fact that in an increasingly competitive industry, almost every startup is aiming for venture capital with little assurance of success, equity crowdfunding was developed as a viable alternative for entrepreneurs bold enough to make the most of it. The author has conducted painstaking research on the latest set of regulations to provide unambiguous responses to oft-repeated queries on the legal and regulatory aspects related to crowdfunding. Going a step ahead, he explains how equity crowdfunding works and why it is the future of startup funding. One of the most recommended venture capital books for next-age entrepreneurs.
An in-depth work on equity crowdfunding and how it could well be the future of startup funding. Readers can find invaluable information on the regulatory aspects of crowdfunding, which makes this work of immense practical value for entrepreneurs and finance professionals. Offers invaluable insights into how crowdfunding works and why it is here to stay. A thoroughly research resource on crowdfunding in all its aspects.Get it here >>
#10 – Angel Investing:
The Gust Guide to Making Money and Having Fun Investing in Startups
by David S. Rose (Author), Reid Hoffman (Foreword)
A compelling work on angel investing, intended to create an interest in this oft-neglected form of startup investing and demonstrate how it can be an exciting experience for the investors. Having bet his money in more than 90 companies as an angel investor in the last 25 years, the author shares some incredible stories with the readers, providing detailed insights into the world of startups and why some of them succeed while others fail. He offers a wealth of information on latest regulations, discusses how online platforms have made startup investing more accessible and builds up a strong case of why angel investing is no longer the domain of privileged few. A must-read for anyone interested in alternative forms of startup investments. .
A highly successful angel investor with decades of experience shares his wisdom on what it takes to be a success with angel investing. Busts several myths about angel investing and lays down in clear terms how to identify good prospects to invest in. Online platforms and changing face of startup investing is discussed along with relevant regulatory aspects. A recommended read for finance students, professionals and future angel investors.Get it here >>
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