Attracting investment in a startup - the book of Feld and Mendelssohn

The book by Brad Feld and Jason Mendelsohn “Attracting investments in a startup. How to negotiate with the investor on the terms of financing ”explains in detail the stages of a venture deal for each of its participants.

The book will be useful to a novice entrepreneur who is engaged in the implementation of a startup project, investors and lawyers. It does not hurt to familiarize with it and the students planning their work in IT, to get a clear understanding of the aspects of organizing the financing of high-tech projects. The authors analyzed their own 17-year experience in financing start-ups. Many of their projects were later bought out by well-known companies such as IBM and Google.

The book presents various specific financing schemes. True, in modern Russian conditions of business development, most of them are not applicable due to differences in legislation. Probably in the future, the possibilities of financing start-ups will be expanded. However, these recommendations will be very useful to domestic entrepreneurs, explaining how to attract financing to the business.

The paper consistently describes the process of venture financing. It explains how to interest the investor and build the most effective relationship. It is emphasized that in the future these relations need to be maintained and developed. Startup mistakes can be a loss of control over the company. Given this, the authors give an example of a contract that provides all the prospects for the development of business relations and allows you to prevent mutual claims from its participants. There are also examples of terms of agreement and letters of intent, which are the main documents in processing a transaction.
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“Brad and Jason wrote a book that is extremely useful for any ambitious entrepreneur, student or budding businessman. The authors are not limited to technical issues: during the reading I came across real pearls of wisdom, which, despite all my experience, I can use in my work. ”

- Dick Costolo, CEO of Twitter (March 2011).

The book is in addition: Peter Thiel “Startup” (Peter Thiel conducted the Startup course in spring 2012 at Stanford University. Before the first lecture, Peter told the audience: “If I do my job correctly, this will be the last subject you will have to learn ). Other literature on this subject can be found here and here .