Mastering the VC game
Entrepreneurs who dream of building the next Amazon, Facebook, or Google have the opportunity to take advantage of one of the most powerful economic engines the world has ever known: venture capital. To do that, you need to woo, impress, and persuade venture capitalists to back your endeavor. That task alone is a challenge. But finding and choosing the right investor can be harder still. Even if you manage to get backing, you want your VC to be a partner, not some dictator who will undermine your vision and take control of your life's work. Jeffrey Bussgang is one of a very few people who have played on both sides of this high-stakes game. By his early thirties, he had helped build two successful start-ups-one went public, the other was acquired. Now he uses his experience and unique perspective on "the other side" as a venture capitalist helping entrepreneurs bring their dreams to fruition. In the book, Bussgang offers high-level insights, colorful stories, and practical advice gathered from his own experience as well as from interviews with dozens of the most successful players on both sides of the game, including Twitter's Jack Dorsey and LinkedIn's Reid Hoffman. He reveals how to get noticed, perfect a pitch, and negotiate a partnership that works for everyone. An insider's guide to the secrets of the world venture capital, Mastering the VC Game will prove invaluable for entrepreneurs seeking capital and successful partnerships.--amazon.com.
Stats for nerds
2recommend
3mentions
3people
2010–2018years
67% recommend33% neutral
Mentions per year
What Hacker News says
- - Do you actually need to raise? If so, is now the right time? If you don’t have a product with any users, it may be more valuable to prioritize this. Raising money is a huge distraction. Approach with caution.
- A clear, succinct, well-designed deck does make a difference.
- Talk to your users. How do they use your product? How often? Include this in your deck.
- Venture Deals and Mastering the VC Game are helpful books
- Read early slide decks of now successful companies. Many are available online (e.g. Airbnb).
- Warm intros help. If you know someone who knows a VC and can intro you, ask!
- Different VCs have different investment strategies. Your TAM might not move the needle on a 1B fund, but it could on a 20M one.
- The best story is a growth curve that’s up and to the right.
- For later stage: not to sound demeaning, but VCs often act like lemmings. An offer on the table makes rallying others easier — reach out to those who gave you a “VC pass” (ie nevder responded to your email, or didn’t follow up after a meeting) and see if they’re interested now.
- If possible, get feedback on your deck from someone who has successfully raised.
- Don’t tell VCs which other VCs you’re talking to. You’ll be tempted, but don’t.
- Take notes after each meeting. What were the objections? Stumbling points? Use this feedback to improve your deck.
- Giving a range for your valuation or amount you want to raise makes you appear indecisive and lacking in confidence. Give specific figures.
- Be capable of justifying why you want to raise X. How’d you come to this figure?
- Stories help. How’d you come to this idea? If you have direct exposure to the problem you’re trying to solve - especially if it’s a business problem - incorporate this into your pitch.
- Make sure you’re talking to people who can make a decision within the firm.
- Don’t copy and paste cold emails. Personalize them.
- This can be a discouraging process. But it’s a numbers game. You only need one yes to get the ball rolling.
- Multiple offers help with negotiation :)
- Good luck!!
- Guy Kawasaki - The Art of the Start - http://www.amazon.com/The-Art-Start-Time-Tested-Battle-Harde...
Brad Feld - Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist - http://www.amazon.com/Venture-Deals-Smarter-Lawyer-Capitalis...
Dermot Berkery - Raising Venture Capital for the Serious Entrepreneur - http://www.amazon.com/Raising-Venture-Capital-Serious-Entrep...
Jeffrey Bussgang - Mastering the VC Game: A Venture Capital Insider Reveals How to Get from Start-up to IPO on Your Terms - http://www.amazon.com/Mastering-VC-Game-Venture-Start-up/dp/...
William Draper - The Startup Game: Inside the Partnership between Venture Capitalists and Entrepreneurs - http://www.amazon.com/The-Startup-Game-Partnership-Entrepren...
- The financial anatomy of VC firms came as a surprise. It wasn't till I read "mastering the vc game"# that I understood how fucked things are.
The strucure breeds mediocrity and the culture that founders hate.
Unfortunately, the people that need convincing are investors in VC firms. Bad returns are the only thing that will convince them. Many regard the category of VC as doomed to significantly shrink; this small chunk of finance in general can't support itself. There are more VC firms than successful exits.
# horrible name, good book
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