Management Library - Raising Venture Capital




    Library and Internet Resources for Raising Venture Capital
    This p...
Management Library - Raising Venture Capital

    Introduction to Venture Capital
    There are several good overviews to ...
Management Library - Raising Venture Capital


                    Selected Lists of Firms:
                       q Price...
Management Library - Raising Venture Capital
            mentoring as their company grows. There are many state-administer...
Management Library - Raising Venture Capital

    Investment Conferences and Fairs
    An increasingly popular and effecti...
Management Library - Raising Venture Capital

                        q   "Soul Proprietor" -- "The saga of SmartRay Netwo...
Management Library - Raising Venture Capital

                        q   The Management Library has prepared an exhaustiv...
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Management Library - Raising Venture Capital

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Management Library - Raising Venture Capital

  1. 1. Management Library - Raising Venture Capital Library and Internet Resources for Raising Venture Capital This page recommends information resources which help answer the broad question: q "How do I go about getting VC funding for my start-up company?" Use the information below to help you determine the most appropriate potential sources of equity backing for your business venture. NOTE: If you're interested in working for a venture capital firm, consult our Venture Capital Job Searches Guide. FINDING VENTURE CAPITAL / EQUITY Know What You Need Introduction to Venture Capital Venture Capital Firms -- Whom Do They Fund? Business Incubators and Angel Investors Government Funding for Small Businesses Investment Conferences and Fairs Selected Articles, Recommended Periodicals...and More Know What You Need Before you attempt to enter the high profile venture capital financial world, you need to know what you expect from the experience. Do you want $$$ only? Or marketing expertise, too? Or perhaps you really seek management help? Is your legal infrastructure weak (or non-existent)? What stage of your business plan have you reached? More importantly, which upcoming stages of your business plan do you expect venture capital support to help you realize? "Capital Questions" from Entrepreneur Magazine (March 1997) helps you determine if "you stand a chance of getting venture capital". Take their test and see how you fare. If you do feel ready for the VC chase, then read this sobering article in the July 1999 issue of Business 2.0 -- Let the Hard Times Roll! It details "why too much capital can kill you." If you couldn't answer the "Capital Questions" effectively, you're likely not ready to contact VC firms for backing. Instead, other equity options listed below might prove useful for you. For inspiration, read an overview of Ed Palmer's equity success story with his company SolarAttic Inc. (available in the September 1999 issue via ProQuest Direct) -- see how his middle-tech idea has been funded in a variety of ways. Back to Top http://www.library.cornell.edu/johnson/library/faq/ent_vc.htm (1 of 7) [5/19/2004 2:03:51 PM]
  2. 2. Management Library - Raising Venture Capital Introduction to Venture Capital There are several good overviews to the world of venture capital and explain how venture capitalists determine which projects to finance. To learn more about the many ways to obtain financing for your small business, take the Equity Financing Course created by the Telecommunications Development Fund. (This online course covers: "differences between debt and equity capital; sources of equity capital; the capital raising process; and extensive on-line and off-line resources for business owners seeking venture capital.") Overviews of Venture Capital q "The Art of Getting Funded", a March 1999 article in Electronic Business, "the management magazine for the electronics industry". "Many entrepreneurs mistakenly believe venture capitalists are looking for good ideas when, in fact, they are looking for good managers in particular industry segments." -- Paul Gibson, "The Art of Getting Funded" q The opening chapters of Pratt's Guide to Private Equity Sources [Ref HG 65 G94; older copies in the stacks] are very informative. They cover such topics as: the background of venture capital; "characteristics of a successful entrepreneurial management team"; how to "choose and approach a venture capitalist", etc. q Wet Feet Press' Insider's Guide to Venture Capital (on Reserve) is a frank, updated view that includes selected lists of VC firms and even a taste of VC "lingo". Though its usually recommended as a "must read" for those interviewing with VC firms, it's an appropriate resource for entrepreneurs as well. Learn what really interests partners in these firms. q The Growth Company Guide to Investors, Deal Structures, and Legal Strategies is a large reference text freely available online. It provides short descriptions of key topics such as joint ventures, windows, incubators, and venture capital. Back to Top Venture Capital Firms -- Whom Do They Fund? If you have an idea for a stellar "everyone will buy this" kitchen gizmo gadget, you aren't going to want to pitch your idea to a VC firm that backs only wireless technology solutions. It's imperative that you know which firms are interested in your type of project. Some even have geographic restrictions, and only fund companies in certain areas of the USA / world. The print and electronic resources below will help you determine which VC firms back your company's particular niche. AMERICAN VENTURE CAPITAL FIRMS http://www.library.cornell.edu/johnson/library/faq/ent_vc.htm (2 of 7) [5/19/2004 2:03:51 PM]
  3. 3. Management Library - Raising Venture Capital Selected Lists of Firms: q PriceWaterhouseCoopers' MoneyTree Survey VC Funds database -- Provides Q2 1999 information arranged by state/region, industry, or in an alphabetical list of investees. q Silicon Valley.com's Venture Capital Survey database -- "This is a searchable database of U.S. firms that received venture capital financing between Q3 1997 and Q1 1999. The data was compiled from a Mercury News/PricewaterhouseCoopers LLP survey of venture capitalists." Search by specific industries, or amount of funds obtained, etc. q A comprehensive print resource is Pratt's Guide to Private Equity Sources [Ref HG 65 G94; older copies in the stacks]. q The Corporate Finance Sourcebook [Ref HG 4057 A19, on Financial Services Tables; older copies in the stacks] -- The data in this resource is collected from surveys completed by each firm. Lists personnel, areas of funding interest, etc. INTERNATIONAL VENTURE CAPITAL FIRMS Selected Lists of Firms: q The European Venture Capital Association maintains two searchable databases (one for entrepreneurs, another for investors) which allow sophisticated searches by industry, country, stage of enterprise, estimation of financial needs, etc. q A Guide to Venture Capital in Asia [Ref. HG 86 g85 9th 1998] is a print publication that provides not only lists of firms in particular countries but also a detailed survey of the Asian VC industry. q Venture Capital Marketplace, an Australian company, maintains a list of international VC firms. However, sometimes only a firm's name and country is provided. q The Venture Capital Resource Library has a master list of VC firms. It is searchable by industry. q Investor Links maintains a large, alphabetical list with direct links to a firm's website. q Chapter 17 of The Corporate Finance Sourcebook [Ref HG 4057 A19, on Financial Services Tables; older copies in the stacks] lists non-American firms who seek VC opportunities in the US. Back to Top Business Incubators and Angel Investors If venture capital isn't the appropriate financial avenue for your company, perhaps one of the following alternate routes will be: q Business Incubators -- For entrepreneurs who need lower cost office space, research equipment, and http://www.library.cornell.edu/johnson/library/faq/ent_vc.htm (3 of 7) [5/19/2004 2:03:51 PM]
  4. 4. Management Library - Raising Venture Capital mentoring as their company grows. There are many state-administered incubators, as well as ones associated with universities. In Upstate New York, for example, Syracuse University and Renssalaer Polytechnic Institute both house incubators. NOTE: "Internet incubators" is sometimes used to describe those incubators interested especially in high-tech projects. Business Incubators q National Business Incubation Organization -- A premier source of business incubation information. Provides a searchable database of local and international incubators. q Angel Investors -- "Angels" are individuals with substantial equity who choose to invest large sums of money in particular endeavors. Some angels will be found via business incubators, keeping track of new startups. Angel Investors q Ace-Net -- "Angels' Capital Electronic Network" is a SBA-sponsored service that helps companies launch DPOs (direct public offerings). Also serves to link investees and investors without going the DPO route. q Garage.com -- Launched in 1998, the company seeks to partner hot projects with either angels, select venture capitalists, or corporate venture-capital divisions. There will be a "bootcamp" in Boston on September 20-21, 2000. (Note: Students can attend the bootcamps for reduced rates.) q "Highway to Heaven" is a June 1999 Entrepreneur Magazine article that covers both angel investing and business incubation. q Telecommunications Development Fund has an extensive list of financing and related links (including links to many angels). Back to Top Government Funding for Small Businesses Not all entrepreneurial projects are suitable for venture capital, but would be good candidates for funding by government or other agencies. Government Funding for Small Businesses q US Small Business Administration (SBA) -- A great starting point for government funding opportunities. Allows you to choose a specific SBA office in your area and see what services it offers. q US Small Business Innovation Research Program -- This program targets entrepreneurs and includes selected grant opportunities. (Peruse a list of 1997 SBIR New York state awardees.) Back to Top http://www.library.cornell.edu/johnson/library/faq/ent_vc.htm (4 of 7) [5/19/2004 2:03:51 PM]
  5. 5. Management Library - Raising Venture Capital Investment Conferences and Fairs An increasingly popular and effective way for entrepreneurs to raise early-stage equity is to attend "venture capital fairs" or "entrepreneurial conferences". These events are sponsored by VC firms, small business associations, or related financial organizations, and give attendees a chance to gain valuable exposure to the industry players. Interactions are more informal than official "pitch" meetings, in part because it's usually not the firm's partners who attend, rather their analysts, who are junior members of staff. Note that several of the links below will lead to "fairs" that took place earlier this year; check these sites again for updated information on future events. Selected Conferences and Fairs North America: q An October 1998 Entrepreneur Magazine article, "Fair Game", discussed venture capital fairs. q Early Stage East -- Primarily for East Coast ventures. q Entrepreneur America's Bootcamp -- "The Boot Camp in Montana is a major opportunity for selected entrepreneurs to obtain first hand coaching on the key areas of their high-tech start-up businesses. The program is an interactive forum in which Rob Ryan, the founder of Ascend Communications, mentors and assists entrepreneurs in the development of the businesses." Rob Ryan was Cornell's 2002 Entrepreneur of the Year. q Garage.com's Bootcamp -- Held on both sides of the USA. (Note: Students can attend the bootcamps for reduced rates.) q Springboard 2000 -- The "first ever venture capital forum to showcase women entrepreneurs." Forums scheduled across the USA, in Silicon Valley, New England and the Mid-Atlantic. q VentureOne, a venture research firm. They hold a series of venture conferences throughout the year. International: q Net Economy Workshops -- (Profiled in the New York Times' "Eurobytes" column on July 13, 1999.) Back to Top Selected Articles, Recommended Periodicals and More Gathering tips from other entrepreneurs' experiences, without living through their actual highs and lows, is an excellent way to gauge what you specifically need to do in your equity search. Most of the resources below are case studies or contain information about particular companies. Selected Articles http://www.library.cornell.edu/johnson/library/faq/ent_vc.htm (5 of 7) [5/19/2004 2:03:51 PM]
  6. 6. Management Library - Raising Venture Capital q "Soul Proprietor" -- "The saga of SmartRay Network Inc offers a powerful reminder of what real entrepreneurship is all about." An August 2000 Fast Company article. q "Cyber Cash" is a March 1999 Entrepreneur Magazine article that stresses the importance of research to the overall success of your search for equity. "I'm amazed at how many entrepreneurs don't go to our Web site before contacting us [Hummer Winblad Venture Partners]...They'll send a business plan for a hardware company. If they'd looked at the site, they'd know we only fund software and Internet ventures." -- Ann Winblad, Principal Partner (as quoted in Cyber Cash) q Entrepreneur Magazine's monthly column "Raising Money" is often insightful. For example, the August 1999 column includes the story of two recent Harvard MBAs and their road to financial backing success. q Inspirational reading can be found in Red Herring Magazine's list of "The Top 10 Entrepreneurs of 1999" (September issue). The criteria for inclusion in this elite group were: "To be considered, an entrepreneur needed a track record of starting companies and some measure of success with those endeavors. His or her new venture had to offer potentially transformational technologies or services. Finally, the entrepreneur had to be someone we felt was relatively undiscovered." This publication is available in paper [HD 9691 A1 R31] or electronically via Factiva. Selected Periodicals q Business 2.0 -- This magazine covers technological innovations and considers itself the "magazine of business in the Internet Age". Available in paper [HF 5548.32 B87] q Entrepreneur Magazine, as its title suggests, targets entrepreneurs. It's available in paper [HF 5001 I61] and also electronically via ProQuest Direct. (Full journal via Factiva.) q Fast Company -- They "strive to provide a big picture of the New Economy." (Full journal via Factiva.) q Next Wave -- PriceWaterhouse Coopers' e-publication of "ideas for private equity investors and entrepreneurs in the technology industry." q Red Herring -- They cover the "business of technology" and provide very good coverage of startups, venture capital, and entrepreneurial activities. (Full journal via Factiva.) q Upside -- "The tech insider." (Full journal via Factiva.) ...and More http://www.library.cornell.edu/johnson/library/faq/ent_vc.htm (6 of 7) [5/19/2004 2:03:51 PM]
  7. 7. Management Library - Raising Venture Capital q The Management Library has prepared an exhaustive list of primarily print resources for entrepreneurship. This list was created for NBA 300 and NBA 564 students, but will prove helpful for anyone interested in entrepreneurship. q The Forum for Women Entrepreneurs has an excellent list of selected funding resources. Back to Top REMEMBER: If you're interested in working for a venture capital firm, consult our Venture Capital Job Searches Guide. Home| Contact Us | Site Map | Feedback ©2003-04 Johnson Graduate School of Management Library Cornell University, Ithaca, New York 14853 USA http://www.library.cornell.edu/johnson/library/faq/ent_vc.htm (7 of 7) [5/19/2004 2:03:51 PM]

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