In this chapter: Relate venture capital methods to more formal equity valuation methods, understand how valuation and percent ownership are related, calculate the amount of shares to be issued to secure a fixed amount of funding, understand the impact of subsequent financing rounds on the structure of the current financing round, construct multiple-scenario valuations and unify them in a single valuation.
This chapter discuss the history & current status of venture investing in the U.S, explain the professional venture investing cycle and its relevance to entrepreneurs seeking professional venture capital, describe the venture capital screening process & list characteristics central to determining a venture capitalist’s willingness to invest,...
The venture capital industry is small and hires only a select few each year.
Traditionally dominated by seasoned executives, many firms consist only of
general partners and an administrative staff.
• A bleak picture for undergrads, though a few larger firms hire young people
to do some of their basic legwork and analysis.
• Not much better for MBAs, though a few recent MBAs have been recruited
right out of business school or have even started their own funds.
The WetFeet Insider Guide to Careers in Venture Capital will teach you: The different approaches taken up by the firms comprising the VC industry due to differences in fund size, regional focus, industry focus, and stage of investing Who the major VC firms are, and how they differ from one another What venture capitalists do on a day-to-day basis What opportunities are available for MBAs and undergrads in the VC industry What it takes to land a job with a venture capital firm What VC insiders like and dislike about their industry What the difference is between a type 1...