Entrepreneurship Reading: Partnering with Venture Capitalists

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This Reading takes a deep look at the venture capital (VC) industry in the United States. VCs have a unique perspective on opportunity evaluation, deal structure, new venture support, and exit strategy. Their work at all stages of the entrepreneurial life cycle offers many lessons to company founders, even those whose ventures are not backed by VCs. This Reading follows the chronological cycle of VC activity from the entrepreneur's vantage point: deal evaluation, deal pricing, structure and terms, working with VCs once the deal has been signed, and exit. The topics of deal pricing, structure, and terms are treated in particular depth through a detailed examination of a term sheet -- the contract that sets out the terms of the VC financing.
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