The Venture Capital Investment Framework
Venture capital is the economic engine that drives entrepreneurship and innovation through capital investments, board membership, advice, introductions to relevant employees, and customers. Despite the outsized importance of venture capital, the inner workings remain hidden. Venture is still a mentor-led industry and it is an industry where you have to do a lot of self-education-you have to learn by doing, and you have to get up to speed quickly.
Until now.
Author William Lin spent over a decade in venture capital, starting in an entry-level position, helping to start a leading VC firm from scratch, and eventually becoming Managing Partner. In The VC Field Guide: Fundamentals of Venture Capital, Lin shares his unique framework, the Venture Capital Investment Framework, to help any venture capitalist, entrepreneur, or investor make better investment decisions, quicker. He delivers an incisive and practical handbook for the world of venture capital. You'll learn about the industry, how to break into it, and discover the art of investing in startups, and more, including:
- How VC deals are analyzed, vetted, and made
- Which questions experienced and successful venture capital investors ask startup founders when making investment decisions, and why those questions matter
- The venture capital mindset that dominates the thinking of the most prominent venture capital investors
- The best ways to begin a career in venture capital and tips on advancing your career
- Key differences between multi-stage and boutique firms and what it means for entrepreneurs
- The different factors VCs use to evaluate early-stage versus late-stage companies
If you want to be close to company creation and innovation as a venture capitalist, investor, or entrepreneur, this book is for you. If you want to be involved in situations that impact economic growth, innovation, and the founders, employees, vendors, and communities that support the broader entrepreneurial ecosystem, this book is for you. The VC Field Guide is not only a primer on the inner workings of the venture capital industry, but a timely framework for how investment decisions are made. Anyone who wants to better understand how venture capital investments are made, and why will find this book helpful.
Praise for The VC Field Guide
"I hear this question from LPs, entrepreneurs, and MBAs all the time, 'How do you decide on the valuation of a startup when there is no historical data to go by?' The Venture Capital Investment Framework (VCIF), anchored on six areas of questioning, is flexible enough to adjust to any industry vertical and provides a solid foundation to anyone thinking about startups."
- CLAUDIA ZEISBERGER, Professor of Entrepreneurship at INSEAD, Founder Global Private Equity Initiative, and Author of Mastering Private Equity
"One of the most important skills in venture capital is asking the right questions. It took me a long time to learn the questions that matter and to ask them in a sophisticated way. The VCIF is a great foundation for any VC to start defining and refining the questions they need to ask to become a successful investor."
- JAI DAS, President, Partner, Co-Founder at Sapphire Ventures
"I unconsciously used the VCIF when I led the early round in Zoom and others. The Zoom team (who) built a product that worked flawlessly (what) on mobile devices (when and why) and significantly expanded the TAM (where and how.) This framework also applies to other aspects of the startup ecosystem, whether you are starting a company or acquiring one."
- NAGRAJ KASHYAP, Managing Partner at Softbank Investment Advisors and Founder of M12, Microsoft's Venture Fund
"Understanding how fund partners select portfolio companies can provide critical insights into their ability to generate strong returns. By providing a structured and systematic approach to evaluating startups, William Lin's VCIF is an invaluable tool for allocators when performing fund manager due diligence. Therefore, it is a must-read for any LP looking to invest in venture capital funds."
- ZIAD SARKIS, Alternative Investments Research Director and Lecturer at the Wharton School, Advisor to Allocators and Alternative Investments Funds
