#BreakIntoVC: How to Break Into Venture Capital And Think Like an Investor Whether You're a Student, Entrepreneur or Working Professional (Venture Capital Guidebook Book 1)

If those investors received their money from several different sources who did not directly own a percentage of the portfolio companies, then those individuals are venture capitalists and they are receiving money from limited partners (these are endowments, foundations, public pensions, high net worth individuals etc.).

Also, don’t be afraid to contact the firms. Many people believe there’s a very rigid recruiting process and they can’t call recruiters and can’t talk to analysts, but just by reaching out you’ll see that people are so generous with their time when it comes to talking with others who show an interest in the industry.

The process works like this: private equity firms look for companies with a high free cash flow, great management and strong consistency in sales. When a firm becomes interested, they execute an LBO in order to purchase a company and then transfer that debt, or money owed, to the target company. They will then use the free cash flow of the company

The CAC payback period is simply how long it takes to recover the cost of acquiring a customer. Ideally, we are looking for startups that can recoup this cost in 12 months or less.

Get Their Thoughts on Being a Great Board Member It’s not often that you get to talk to someone who is on the board of a company. However in venture capital and growth equity you can easily find this information on their LinkedIn page. If they are a board observer, feel free to ask this question as well.

Growth equity refers to investing in a company at later rounds (Series C, D, E, etc.) in order to have the company either IPO or get acquired.

A quick note on primary and secondary. These $1 shares are considered primary shares if they were issued for the investors in this round and have no prior owner. If the $1 shares had a prior owner, like an early angel investor or founder who wants to cash out, these are considered secondary shares since two individuals are simply trading shares amo

The venture capital method is not a definitive way to value a company, but rather a back of the napkin approach that VCs and angels can use to back out a valuation for an early stage company. We determine what we think the company will be worth at exit through market conditions and industry multiples, then divide this number by the anticipated retu

A popular question that VCs often ask is “Can you tell me about an industry that excites you?” They will then lead the conversation into a pitch about a particular company in the industry.