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Venture Deals

Venture Deals

By Brad Feld & Jason Mendelson

Be Smarter Than Your Lawyer and Venture Capitalist. Third Edition, Wiley, 2016.

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19 mins read

16 Key insights

A brief summary of Venture Deals

A fact-filled study of the intricate dealings between entrepreneurs and venture capitalists, complete with term sheets, real-world examples, and simplified explanations of difficult-to-understand concepts so that anyone can follow along.

Key insights in Venture Deals

1
What do you get from this book? Investment concepts and strategies to take your startup to the next level
2
The business world consists mainly of entrepreneurs and investors; understanding each role will help you grow your company
3
There are a variety of venture capital firms, and different types of financing to go with them
4
There are a few fundamental documents that every VC firm expects to see—make sure you’ve got them ready
5
Getting a VC to invest in your company takes time, patience, and connections
6
Term sheets are long, technical, but essential documents that lay out every economic detail of an investment
7
The price and structure of a “letter of intent” is critical to ensuring a good sale
8
Transaction and agency costs, location, and intellectual property should all be defined in the term sheet
9
“Control” terms and capitalization tables detail who manages the company and how much power they have
10
Convertible debts are a type of loan that relies on converting stock options rather than raising capital
11
VCs and CVCs get their money from different types of investors, but more startups are moving toward crowdfunding
12
When making a deal, identify your opponent’s negotiating style and know when to walk away
13
Avoiding mistakes early on makes it easier to transverse the different stages of financing
14
Summary of the key insights
15
Selected critiques brief
16
Final word

Who should read Venture Deals

Entrepreneurs • startups • business students • small business owners looking to expand • anyone with an interest in investing

About the author of Venture Deals

Brad Feld is the co-founder of TechStars, a corporation dedicated to launching innovative startups. His blog, Feld Thoughts, gives an insider’s perspective on the world of entrepreneurship. Jason Mendelson and Feld are the co-founders of Foundry Group, an investment firm dedicated to technology startups and educating future venture capitalists. Previously, Mendelson was an attorney with Cooley Godward Kronish LLP.

author avatar

Brad Feld

author avatar

Jason Mendelson

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