Praise for The Little Book of Venture Capital Investing
"From my point of view, VC is the ultimate in supply–side, and this Little Book captures this in a way not done before."
Arthur B. Laffer, Laffer Associates
"The only VC–related book I′m aware of providing a lively and contemporary go–to synopsis on the state of the VC industry, the ins–and–outs on how to invest in the space, and a forward look of what′s needed to reignite the VC growth engine."
Frank J. Caufield, Partner Emeritus, KPCB
"From an educator′s perspective, the book offers great insight into VC′s importance as a U.S. jobs and income creator."
The Honorable William Bennett, Former Secretary of Education
An Introduction to Venture Capital Investing xi
An Historic Overview of Venture Capitalism 1
The VC Industry Today 23
The Value Proposition 45
Prevailing Investment Climate 71
Field Guide for VC Investing Options Nonlisted 105
Investment Options Listed 145
Investment Process Sourcing and Screening 165
Investment Process Due Diligence and Selection 179
Investment Process Portfolio Construction, Monitoring, and Monetizing 209
Appendix: Resources 237
About the Authors 261
LOUIS C. GERKEN founded alternative asset fund manager Gerken Capital Associates (GCA) in 1989. Prior to forming GCA, Mr. Gerken was a Managing Director and Group Head of Prudential Securities′ Technology Investment Banking Division, which served as an advisor to international M&A and corporate finance mandates.
Earlier, Mr. Gerken was a General Partner to Prudential Securities′ four venture capital funds, known collectively as Prutech, one of the largest U.S. venture capital funds at the time. Prutech completed over fifty IT and bio–tech sector early– and expansion–stage investments, and was one of the first VC funds to pioneer corporate partnering as a co–investment strategy. Prior to this, Mr. Gerken was responsible for overseeing Wells Fargo′s venture capital activities where he structured one the industry′s first fund of funds.
He was a founder/CEO of TCG, a telecom consulting engineering firm and started his career with emerging markets fund management pioneer, GT Capital.