Customer Reviews
venture capital made simple - By: Ashbeer Wm Limited, 08 Mar 2008 
I read this book to provide me with a basic understanding of this subject, & was delighted with the content. The book is well written, clear & concise. Highly recommended.
Excellent guide well written and researched - By: Robert Shaw, 06 Jul 2007 I own many books on venture capital & business plans, & this one is top of the pile. It's well researched, giving a clear picture of the venture capital & private equity marketsin Europe. Many other books are written from a US perspective, so this book provides a much needed EU perspective. It also gives good, practical advice, without the glossy hype of the American texts.
It certainly isn't only for those `Raising Venture Capital Finance in Europe' - By: Bryan Foss, 12 Jun 2007 As board level marketers we know how positive the current environment is for sustained business growth, at least where we get things right. Start-ups & entrepreneurs abound & existing companies are taking the opportunity to move into new markets at home & abroad, launch new products & services, expanding operations & hiring new staff.
Emerging small businesses are providing the innovation that large companies need. But these small businesses need to grow quickly to follow their clients organisation internationally & to exploit their emerging business potential. More mature private companies may need to expand into new business areas, initiate major projects or plan for the departure of previous founding directors & their capital.
Growing a winning idea, even a proven idea, into a successful & fast growing enterprise requires funds. But there are so many funding options available. Should the directors re-mortgage their houses? Can we generate enough cash from income? Should we ask the bank for a major line of credit? Can we find an appropriate business angel? Would private equity companies be too big for us & would we gain enough investment from an appearance on TV's `Dragons Den'?
So many alternative sources of finance are available, but for many fast growing companies venture capital proves to be the best fit. This book clearly explains the structure of the VC industry, what it provides & the alternative financing options available. Misconceptions are directly addressed & demystified.
It becomes clear to the reader that VC companies have specialist skillsin supporting technology dependant companies & this is often important as whatever business we arein we seem increasingly dependent on technology as part of our product set. Companies that I'm personally involved with have needed to develop systems to deliver their servicesin digital marketing, online market research, key account management & investment portfolio analytics.
The author highlights the role of marketingin building a realistic business plan that also makes the company, its products, market positioning & potential profits attractive to a potential VC investor. As marketers we're usually focused on selling our products to consumers, but it seems that many of the same skills are valuable & central to a team that will sell the company's capabilities & market opportunity to investors.
This book provides an outline for developing & presenting this strategic business plan, with tips on how to selectively approach VC's, negotiating to sell or build the business, preparing for due diligence, defining the benefits for investors & planning potential exit routes too.
Insights into what VC's are looking for will be of great value as you select & approach them. How will they value your business & its proposition? VC's need an understanding of your development stage, industry focus, geographic coverage & the investment required. They are usually looking for a company that can achieve a leading positionin a growth market, with the right balance of risk & return!
In general VC's focus on proven technologies & aren't keen on taking technical risk. They know how to protect your IP & shoot for global market potential. Disruptive technologies are particularly attractive to them - an oft quoted example is the digital camera that has almost completely killed film sales.
3i (one of the largest & best known VC's) say they are always looking for:
- Exceptional leadership with entrepreneurial flair & proven technical & business expertise
- Disruptive technology & the vision to create a new market, or gain significant sharein an existing market
Building an experienced & complementary management team, with sector expertise, track record & ambition is key. VC's can help you fill the gaps, with advisers or non-executive directors, tax, legal & other skills. They can even introduce you to relevant networking organisations & forums, finding new customers, new partners & new advisers.
The book includes a directory of VC's focused on technology, it also provides significant advice for university spin-outs. Practical case studies & a series of `VC tips' are interleaved throughout the book, with critical success factors for `start ups that work', consolidated top tips aboundin this clear & easy to read book.
Author Keith Arundale's 20 year involvement with the European & US Venture Capital industries shows through. If you arein business, or even thinking about starting one, this book makes an essential read. It certainly isn't only for those `Raising Venture Capital Financein Europe'.
But one final warning; recent research by City Universityin London suggests that, where Venture Capital becomes involved, 80% of previous CEO's are gone within 5 years & those that remain are usually moved to in-house technology or innovation leadership roles.
Bryan Foss is an independent board level advisor, business author & non-executive director, also founder of www.FossInitiatives.com
