#BreakIntoVC: How to Break Into Venture Capital And Think Like an Investor Whether You're a Student, Entrepreneur or Working Professional (Venture Capital Guidebook Book 1)

The main idea here is primary shares represent the creation of value while secondary shares instead imply the trading of value between investors and entrepreneurs.

Aside from the resume, another way to be impactful is to show or prove that you can do the work of a VC. Try and help out with suggestions for their portfolio companies. If you know about a company and think it may be worth a VC’s time, always feel free to reach out. I think some of these things are more important than a resume in some aspects.

A popular question that VCs often ask is “Can you tell me about an industry that excites you?” They will then lead the conversation into a pitch about a particular company in the industry.

The venture capital method is not a definitive way to value a company, but rather a back of the napkin approach that VCs and angels can use to back out a valuation for an early stage company. We determine what we think the company will be worth at exit through market conditions and industry multiples, then divide this number by the anticipated retu

In other words, while both venture capital and growth equity firms are looking for the next Seamless, Uber or Netflix, the evidence of a startup becoming a market leader needs to be much stronger in growth equity. Since the risk profile is relatively lower compared to traditional venture capital, target ROI here is a little lower and typically exis

Why People Invest in Venture Capital Despite such a high risk, limited partners agree to invest in venture firms in order to diversify their assets, or what they own. Instead of allocating capital only to stocks, bonds and real estate, portfolio managers allocate a portion of funds to a category known as alternative investments, which consists of p

The amount of original insight you can add is a great indicator of your passion in a given field. It will take you miles ahead of your competitors who are likely simplifying and recycling information from the above sources. Creating your own bolded insights above is one of the keys to being a cut above the rest in the interview process.

Private equity relies on a wholly different business model. Private equity firms like Blackstone, The Apollo Group and KKR will typically take a 100 percent stake, or complete ownership in an operational company. These firms will then scale that company through add-on acquisitions and organic growth for a period of 4 to 7 years until ultimately sel

As in our tree startup example, venture debt is a fairly common tool that allows a company to meet sales demand without giving away equity. Companies may also consider venture debt after they have raised a round and need a little more cash to accelerate growth.