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Description: The business of helping firms to become "investment ready" has long been seen as vital to the long”term development of any economy, but the process of identifying and attracting the right kind of investor can be difficult for many small and medium-sized businesses. Updated to take account of recent developments in patterns of funding, this second edition of Venture Capital Funding gives you a detailed, step-by-step guide to obtaining venture capital ” from building a management team through to the maze of due diligence obligations and necessary legal procedures.
The practicalities of competing for, and winning, additional capital are broken down into key areas, such as: ¢ the significance of the business plan ¢ types of investor ¢ targeting and attracting a funder ¢ negotiation and initial valuations ¢ the due diligence process ¢ the available investment vehicles.It also explores the many reasons why companies seek out additional funding, and discusses the points in the business life cycle when such injections are appropriate
Contents: Introduction: some objectives and definitions ¢ Background issues ¢ The funding gap ” myth or reality? ¢ Mathematics ¢ Market ¢ Management ¢ Mission impossible ¢ The future revisited I: developments in legal matters (in collaboration with John Short of Taylor Vinters) ¢ Legal documentation ¢ Business angels ¢ The professionals` cut ¢ Conclusion ¢ The future revisited II: developments in regional funding (in collaboration with Max Bautin of 1Q Capital) ¢ New sources of proposals ¢ The structural side ¢ The future revisited III: the view from the City (in collaboration with Bob Henry of Matrix Partners) ¢ Why do you want funding? ¢ Defining what venture capital is ” and is not ¢ The basic question ¢ The four main purposes ¢ Start-up ¢ Business development ¢ Shareholder change ¢ Rescue ¢ Know your enemy: the venture capitalists considered ¢ The myth of patient money ¢ Pressures on the venture capitalist ¢ Factors and issues affecting venture capital fund policies ¢ Fund size and structure ¢ Size of funds ¢ Life cycle ¢ Horses for courses ¢ From the fund to the individual ” background and experience ¢ Fund remuneration ¢ The mechanics of doing the deal ¢ Stages of the process ¢ The business plan ¢ Attracting a funder ¢ Employing professional advisers ¢ Selecting a potential investor ¢ Deal negotiation and initial valuation ¢ The preliminary offer ¢ Fees ¢ ˜Due diligence` ¢ Seeing the finishing line ¢ Stars and bars ¢ The major routes out ¢ The P/E trap ¢ Reasons to be helpful, part 1 ¢ Reasons to be helpful, part 2 ¢ The dark side ¢ Dealing with existing shareholders (and stakeholders) ¢ The effects of change ¢ The best structure ¢ Shareholders ¢ Other stakeholders ¢ Building ” and displaying ” the management team ¢ Four elements of a management team ¢ Dropping directors ¢ Succession ¢ The key issues of discovery: the ˜due diligence` process ˜House style` ¢ The due diligence process ¢ The process ¢ Stage 1: disk review ¢ Stage 2: management called in to discuss the proposal ¢ Stage 3: company visits ¢ Stage 4: market review ¢ Stage 5: customer review and supplier review ¢ Stage 6: financial and credit review ¢ Stage 7: accountants` investigation ¢ The investment committee ¢ The choice of investment vehicle: existing business or newco? ¢ Type of investment ¢ Realization considerations ¢ Trading record ¢ Complexity ¢ Tax ¢ The structure of the deal and the return to the investor ¢ Legal stages: where the going gets tough ¢ The process step by step ¢ The process ¢ Major features and documents ¢ What the term sheet contains ¢ The disclosure letter ¢ Other points ¢ Formal legal documentation ¢ Post-investment considerations: culture shock ¢ The failure of mutual comprehension ¢ Costs ¢ Additional scrutiny ” and the consequences ¢ Requisite skills ¢ Board atmosphere ¢ Increased formality ¢ The false hope of synergy ¢ Outside involvement ¢ Personnel change ¢ Tactical actions of the investor ¢ Further funding ¢ The problems with angels ¢ Non-problems ¢ Realization of the investment ¢ Flotation ” IPOs ¢ Trade sales ¢ Buy-outs ¢ The dark side: corporate collapse ¢ Summary: do you still want venture capital? ¢ In defence of other funding ¢ In defence of VCs ¢ The point of departure ¢ General conclusion.
About the Author: Stephen Bloomfield has been a director of three venture capital funds, leading and participating in numerous deals and syndications and then acting as a "company doctor" for ten years. He is now a Visiting Fellow in Corporate Governance at London South Bank University and is actively involved in research into the way in which venture funding is conducted nationally and regionally.
Target Audience: Students and academics of corporate finance.
Special prices are applicable to the authorised sales territory only.
Prices are subject to change without prior notice. ISBN 9780749455378
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Pages : 256
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