Introduction to venture capital and private equity finance

Introduction to Venture Capital and Private Equity Finance
Introduction To This Book
0.1: Chapter 1 — What Is All The Talk About?
0.1.1: Introduction To Venture Capital
0.1.2: What Is Venture Capital?
0.1.3: How Venture Capitalists Talk
0.1.4: Should You Start Your Own Company?
0.1.5: You Can Make It…Will Someone Buy It?
0.2: Chapter 2 — Where Should I Look for Seed Capital?
0.2.1: Introduction to Raising Capital
0.2.2: Angels
0.2.3: Venture Capital Firms
0.2.4: State Aid
0.2.5: Federal Grants And Loans
0.2.6: Commercial Banks
0.2.7: Placement Agents
0.2.8: Venture-Capital Clubs
0.2.9: Concept IPO's
0.2.10: Multiple-Round Strategy
0.2.11: Case Study In Finding Money: A Reality Check
0.2.12: Three Basic Rules, Dilution, Dilution, Dilution
0.2.13: Who's Who of Angels
0.3: Chapter 3 — Valuing the Privately Held Business
0.3.1: Valuation And Pricing
0.3.2: Portfolio Management
0.3.3: Unconventional Comparables
0.3.4: When In Doubt on Pre-Money Valuation, Smart Guys Procrastinate
0.3.5: The Three Basic Letters … IRR
0.4: Chapter 4 — What Legal Form Works Best For You?
0.4.1: Selecting The Form Of The Organization
0.4.2: S Corporations
0.4.3: Limited Liability Companies (LLCs)
0.4.4: Corporation Versus Limited Liability Company
0.5: Chapter 5 — What Will My Corporation Look Like?
0.5.1: Corporate Bylaws, Charters, And Other Legalities
0.5.2: Corporate Charter
0.5.3: Payment For Stock
0.5.4: Statement Of Purpose
0.5.5: Miscellaneous Charter Provisions
0.5.6: Restrictions On Transfer
0.5.7: Preferred Stock Provisions
0.5.8: Preemptive Rights
0.5.9: Indemnification
0.5.10: Bylaws
0.5.11: Other Organizational Documents
0.5.12: State Of Corporate Domicile: Delaware Or Somewhere Else?
0.6: Chapter 6 — Tax Discussion For The Non-Lawyer
0.6.1: Minimizing Taxes In The Early Stages
0.6.2: Cheap Stock To Employees And Promoters: The Eat-'Em-All-Up Preferred Stock Approach
0.6.3: Stock For Services: The Passage of Time Approach
0.6.4: Section 83 And Stock Subject To Vesting
0.7: Chapter 7 — Drafting the Business Plan and the Placement Memo
0.7.1: Drafting The Business Plan And Private Placement Memo
0.7.2: Risk Factors
0.7.3: Avoidance of Liabililty
0.7.4: Business Plan
0.7.4.a: What Not To Say in a Business Plan
0.7.5: The Marketing Section
0.7.6: Business Strategy And The Single-Product Problem
0.7.7: Management
0.7.8: Beefing Up The Board Of Directors
0.7.9: Other Issues
0.7.10: The Bull's-Eye Theory Of Forecasting: Shoot High
0.7.11: The Promissory Nature Of The Forecast: Shoot Low
0.7.12: Composite Table of Contents of Business Plan
0.7.12.a: Sample Business Plans
0.8: Chapter 8 — Investor's Terms
0.8.1: The Venture Capital Term Sheet
0.8.2: What Will VC's Want For A Security: Common Stock? Preferred Stock? Debt? Warrants?
0.8.3: Common Stock
0.8.4: Warrants
0.8.5: Preferred Stock
0.8.6: Participating Preferred with a Cap
0.8.7: Participating Preferred
0.8.8: Antidilution Protection For Investors
0.8.9: Who Controls: Me Or Them?
0.8.10: Registration Rights
0.8.11: Liquidation Preferences
0.9: Chapter 9 — I Have A Letter of Intent: What's In The Contract?
0.9.1: The Contract: Purchase Agreement, Shareholders Agreement, And Rights Of First Refusal
0.9.2: Stockholders Agreement
0.10: Chapter 10 — Selling Stock, Privately… And Legally
0.10.1: Private Placement Memorandum And Regulation D
0.10.2: If Regulation D Is Not Available?
0.11: Chapter 11 — Compensating Your Key Executives
0.11.1: The "Carrot" Approach: Equity Incentives
0.11.2: Stock Options
0.11.