The Business of Venture Capital

Building a Venture Firm, Investing in Startups, and Driving Returns
4. Auflage 2026
ISBN: 978-1-394-36521-0
Verlag: Wiley John + Sons

Buch, Englisch, 800 Seiten, Format (B × H): 163 mm x 234 mm, Gewicht: 1066 g

Reihe: Wiley Finance

The definitive guide to building, managing, and scaling a venture capital firm

Now in its fourth edition, The Business of Venture Capital: Building a Venture Firm, Investing in Startups, and Driving Returns delivers human insight and wisdom that generative AI cannot replicate. Authors Mahendra Ramsinghani and Tim Hsia draw on decades of hands-on experience to explain the multiple facets of venture capital, from raising funds to structuring investments to evaluating exit strategies.

This updated edition features new coverage of global geographic trends in venture capital and comprehensively refreshed data examining ten-year, seven-year, and five-year investment cycles. The book walks readers through generating consistent returns, building portfolio management systems, and navigating the complex dynamics of limited partner and general partner relationships in today's evolving market landscape.

Readers will also find:

- Updated analysis of worldwide VC trends at the macro level, revealing what's happening in venture capital markets across different regions

- Practical guidance on fund formation, deal structuring, and portfolio construction drawn from the authors' combined experience investing in dozens of startups

- Insights into evaluating exit strategies including IPOs, SPACs, and strategic acquisitions based on real portfolio outcomes and current market conditions

- A framework for understanding investment cycles and timing decisions aligned with the typical six to seven year venture fund lifecycle

- Expert perspectives refined through speaking engagements, executive education programs, and contributions to leading technology and finance publications

Essential for aspiring and practicing venture capitalists, limited partners evaluating fund investments, entrepreneurs seeking to understand investor perspectives, and finance professionals transitioning into venture capital, The Business of Venture Capital provides an authoritative foundation for building a successful career in startup investing.

Autoren/Hrsg.

Ramsinghani, Mahendra

Hsia, Tim

Fachgebiete

• Wirtschaftswissenschaften Betriebswirtschaft Unternehmensfinanzen Finanzierung, Investition, Leasing
• Wirtschaftswissenschaften Finanzsektor & Finanzdienstleistungen Anlagen & Wertpapiere
• Wirtschaftswissenschaften Finanzsektor & Finanzdienstleistungen Unternehmensfinanzierung
• Wirtschaftswissenschaften Wirtschaftswissenschaften Literatur für Manager

Inhaltsverzeichnis

Foreword xvii
Preface to the Fourth Edition xxiii
Acknowledgments xxvii

Part I Background and Context: The Business of Venture Capital 1
Chapter 1 The Basics 3
Chapter 2 The Great Game of Investing 23
Chapter 3 A Brief History of Venture Capital 35
Chapter 4 The Industrialization of Venture Capital: From Cottage Industry to Capital Complex 47
Chapter 5 The Role of Government Policy in the Rise of Venture Capital 63

Part II A Career in Venture Capital 85
Chapter 6 Why Be a VC Investor? 87
Chapter 7 The Role of a VC Investor 99
Chapter 8 Getting In: (When There Is No Job Posting) 109
Chapter 9 Making an Early Impact 153
Chapter 10 The Challenges of a Venture Capital Career 165

Part III The Art and Science of Venture Investments 175
Chapter 11 Sourcing Opportunities: Introduction to the Art of the Hunt 177
Chapter 12 Conducting Diligence 209
Chapter 13 The Architecture of Agreement 245
Chapter 14 The Post-Investment Journey 271
Chapter 15 VC Investors in the Boardroom 291
Chapter 16 Managing Crisis in the Boardroom 301
Chapter 17 Exits and Liquidity 311

Part IV The Emerging Manager's Guide to Fundraising 353
Chapter 18 Foundations of Your First Fund 355
Chapter 19 The Art of Portfolio Construction 389
Chapter 20 Fund Terms Explained 411
Chapter 21 The Fundraising Process 427
Chapter 22 Scaling Your Firm 467
Chapter 23 Building a Firm's Cultural OS 487

Part V The Hard Things 497
Chapter 24 Managing Your Career 499
Chapter 25 Case Studies: Founder (Un) Friendly 533
Chapter 26 Managing Your Partnership 545
Chapter 27 Managing Your Psychology 559
Chapter 28 Earned, Not Appointed 587

Part VI Legacy and End Games 591
Chapter 29 Solving Infinite Problems 593
Chapter 30 VC's Role in Society 619xvi Contents
Chapter 31 The Endgame: Many VC Investors and a Funeral 651

Part VII Epilogue and Appendixes 657
Epilogue: The Greatest VCs of All Time 659
Appendix A: Venture Fund Launch Checklist 673
Appendix B: LP Universe: Snapshot 679
Appendix C: Fund Revenue Model: Fees and Carry 683
Appendix D: Venture Fund: First Close Steps: Checklist 687
Appendix E: Forming the LPAC 695
Appendix F: Company Diligence Check List: Summary 701
Appendix G: Summary of KEY Investment Terms in Early-Stage Investing 705
Appendix H: Boards and Boardrooms 709

Notes 715
Index 739

Über Autor(innen)

MAHENDRA RAMSINGHANI is the founder and managing partner of Secure Octane, a San Francisco-based seed stage fund. With investments in more than fifty companies, and multiple exits, he has operated as an LP, GP, and founder across the U.S., Asia Pacific, and the Middle East. He co-directs the venture capital executive education program at the University of California, Berkeley. He is the co-author of Startup Boards and The Resilient Founder.

TIM HSIA is the founder and managing partner of Context Ventures, a San Francisco-based early-stage fund focused on preseed founders. A graduate of the United States Military Academy, he served as a U.S. Army Officer with two deployments to Iraq and received the Bronze Star. Hsia has authored venture capital case studies at Stanford University.