Grow Your Business with Venture Capital : Strategies to Grow Your Business with Outside Investors Book

Acknowledgments
Introduction
Chapter 1: Business Growth and Venture Capital
To Grow or Not to Grow: That Is the Question
The Entrepreneur Who Couldn't Afford to Sell His Business
The Benefits of Growth
Strategic Choices
Leveraged Recapitalization
Stages of Business
Internal Rate of Return
Chapter 2: Strategic Considerations
Publicly Traded Companies vs. Private Companies
Factors to Consider
Postpone Outside Capital As Long As Possible
Don't Wait Too Long
Chapter 3: Strategic Examples
Chapter 4: Advanced Planning to Raise Capital
Hire an Outstanding Professional Team
Develop a Business Plan
Understand the Thinking of Your Capital Sources
Strengthen Your Management and Board of Directors
Create Protections Against Competition
Obtain Audited or Auditable Financial Statements
Eliminate Deal Killers
Chapter 5: Overview of Capital Choices
Advantages and Disadvantages of Professionally Managed Venture Capital
Forms of Financing
Tax-Advantaged Investments
Chapter 6: Professionally Managed Venture Capital
Industry Overview
Sources of Funds
Description of a Venture Capital Fund
Seed-Stage Funds
Canadian Venture Capital
Selecting a Venture Capitalist
Approaching a Venture Capitalist
Check Out Your Venture Capitalist
Chapter 7: Valuing Your Business
Discounted Cash-Flow Method
Other Valuation Methods
Minimum Value Formulas
Specific Factors That Affect Valuation
Chapter 8: Keeping Control of Your Business
Control Premiums
Example of Control Provisions
Tag-Along Clause
Chapter 9: Negotiating with a Professional Venture Capitalist
Ten Major Issues in Negotiating Venture Capital Investment
Valuation Issues
Subtle Methods of Decreasing Valuation
Control of the Company
Form of Investments
Management Incentives and Disincentives
Employment Contracts and Agreements
Stockholder's Agreement
Registration Rights
Other Covenants
Chapter 10: Summary and Analysis of a Venture Capital Agreement
Explanation of Specific Clauses
Exit Clauses
Employment Agreements
Chapter 11: Angel Investors
The Archangel
Structuring Deals for Angels
Investor Terms
Finding Angels
Web-Site Angels
Corporate Angels
Angel Networks
Chapter 12: How to Conduct an Angel Offering
Securities Act of 1933
The Private Placement Choices
The Public Offering Choices
Type of Offering
Control Personal Liability
Chapter 13: Junk-Bond Financing
Retail or Angel Market
Examples of Retail or Angel Junk-Bond Offerings
Institutional Market
Rating System
Rule 144A for Late-Stage Companies
Chapter 14: What You Should Know About Investment Brokers
Minimum IPO Size Standards
Private Placement Sponsored by Investment Banker
Operation of Investment Banker-Sponsored Private Placement
Chapter 15: Going Public
Qualifying for NASDAQ and the Major Exchanges
Going Public vs. Private Equity Capital
Pre-IPO Valuation Below $10 to $20 Million
Direct IPOs over the Internet
IPO Timetables
Chapter 16: Roll-Ups and Acquisitions
The Strategy Roll-Ups
Private Company Roll-Ups
Meeting IPO Size Requirements
Cost Efficiencies
The Multiplier Effect
Suppose You Just Want to Sell Your Business
Simultaneous or "Poof" Roll-Ups
Protect Yourself from Unsuccessful Acquisitions
Common Mistakes in Roll-Ups and Other Acquisitions
Chapter 17: Withdrawing Equity from Your Business
Leveraged Recapitalization
Chapter 18: Financing Your Business with Credit Cards
Types of Financing by Size of Company
Legal Review
Interest Rates and Repayment Terms
Hazards of Credit-Card Financing
Appendix 1: Sample Term Sheet for an Early-Stage Professionally Managed Venture Capital Transaction
Appendix 2: Sample Term Sheet for an Investment Banker-Sponsored Private Placement
Appendix 3: Sample Venture Capital Agreement
Appendix 4: A Primer on IPO Roll-Ups
Appendix 5: Canadian Venture Capital
Index