Raising capital from venture capital funds becomes more popular in Vietnam. To succeed in raising new business capital on the most attractive terms, it is essential to understand how venture capitalists arrange the financing for a company, what they look for in a business plan, how they value a business, and how they structure the terms of an agreement. The Raising Venture Capital for Serious Entrepreneur written by Dermot Berkery, an internationally know venture capitalist with Delta Partners, is an excellent resource to meet these expectations. The book also matches the interests of the person who pursues a career in the venture capital industry.
Dermot Berkery is a general partner with Delta Partners, a leading European venture capital company that invests in Ireland and the United Kingdom. He has led investments in early-stage companies in sectors such as software, electronics, mobile services, medical components, and security equipment. Mr.Berkery was formerly a senior Manager with McKinsey&Co., where he served clients across the U.S., Europe, Australia, and Asia, focusing mainly on financial services and energy.
Using informative case studies, detailed charts, and term sheet exercises, the author discusses the basic principles of the venture capital method, strategies for raising capital, methods of valuing the early-stage venture, and proven techniques for negotiating the deal. These contents break down into 12 chapters:
- Chapter 1 outlines how the long journey of building a valuable business should be broken into a series of stepping stones. Each stepping-stone comprises an integrated group of milestones (related to the product, market, customers, management, etc.).
- Chapter 2 focuses on the first of the stepping-stones.
- Chapter 3 mentions 10 unique cash flows and risk dynamics.
- Chapter 4 covers how much capital a company should seek to raise in a round of funding and what it should spend the capital on.
- Chapter 5 describes how the structure of a fund and the compensation approach drives a venture capitalist’s behavior and thought process.
- Chapter 6 covers the blocks of evidence a typical investor will want.
- Chapter 7 addresses the area fudged by other books on VC how to set a fair valuation for a new or early-stage company.
- Chapter 8 introduces the concept of term sheets.
- Chapter 9 talks about terms for splitting the rewards.
- Chapter 10 enables investors to exercise control that is disproportionate to their level of shareholding. Retaining certain decision rights or appointing board members can achieve this.
- Chapter 11 helps to closely align the economic interests of the investor and the entrepreneurs through techniques such as vesting and warranties.
- Chapter 12 provides an exercise on term sheet negotiations.
Readers will find it valuable since the author uses plain language, simple explanations for jargon together with mini-cases throughout the book. The book will help you solve a lot of questions reasonably.
Grab a chance to talk directly with him by joining this Saturday event called Etalk Adventure to the Venture hosted by Wiziin & Embassy of Ireland in Vietnam!
- Date: Saturday, 28.08.2021
- Time: 03:00 PM – 04:30 PM.
- Location: Online by Zoom
- Register here: https://bit.ly/VVCP-Etalk-Exclusive-Chapter
The review contributed by Hằng Thu – VVCC Project