Summary of Scott Kupor's Secrets of Sand Hill Road , livre ebook

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40 pages

English

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Please note: This is a companion version & not the original book.
Sample Book Insights:
#1 The tech and investment world was different in the 1990s. It was a great time to be starting out in the tech industry, as there seemed to be no end to the promise of technology and the amount of wealth creation available to everyone involved.
#2 I was completely oblivious to the tech boom around me, as I had spent my time after graduating from Stanford University and Stanford Law School in Houston, Texas, clerking for the Fifth Circuit Court of Appeals in Silicon Valley.
#3 I had finally opened my eyes to what was happening around me, and I wanted to be a part of it. I had just been hired by LoudCloud, a startup that sought to turn computing power into a utility. As an engineer, you should be able to develop your custom application and then just plug it in to the compute utility.
#4 I interviewed with several members of the team, including cofounder Ben Horowitz. He was dressed in Oakland Raiders gear, which was completely in character. I now know that his attire was completely in character.

Sujets

Venture capital

Corporate finance

Informations

Publié par	Everest Media LLC
Date de parution	25 mars 2022
Nombre de lectures	0
EAN13	9781669364160
Langue	English
Poids de l'ouvrage	1 Mo

Informations légales : prix de location à la page 0,0150€. Cette information est donnée uniquement à titre indicatif conformément à la législation en vigueur.

Extrait

Insights on Scott Kupor's Secrets of Sand Hill Road
Contents Insights from Chapter 1 Insights from Chapter 2 Insights from Chapter 3 Insights from Chapter 4 Insights from Chapter 5 Insights from Chapter 6 Insights from Chapter 7 Insights from Chapter 8 Insights from Chapter 9 Insights from Chapter 10 Insights from Chapter 11 Insights from Chapter 12 Insights from Chapter 13 Insights from Chapter 14 Insights from Chapter 15
Insights from Chapter 1

#1

The tech and investment world was different in the 1990s. It was a great time to be starting out in the tech industry, as there seemed to be no end to the promise of technology and the amount of wealth creation available to everyone involved.

#2

I was completely oblivious to the tech boom around me, as I had spent my time after graduating from Stanford University and Stanford Law School in Houston, Texas, clerking for the Fifth Circuit Court of Appeals in Silicon Valley.

#3

I had finally opened my eyes to what was happening around me, and I wanted to be a part of it. I had just been hired by LoudCloud, a startup that sought to turn computing power into a utility. As an engineer, you should be able to develop your custom application and then just plug it in to the compute utility.

#4

I interviewed with several members of the team, including cofounder Ben Horowitz. He was dressed in Oakland Raiders gear, which was completely in character. I now know that his attire was completely in character.

#5

I was hired as a business development manager at LoudCloud, a company that provided compute utilities for other startup companies. We had raised nearly $60 million of debt and equity, but we were dangerously low on cash due to the post-2000 dot-com collapse.

#6

The buyout investors, who were more interested in controlling a company than funding it, were willing to pay less for LoudCloud than the VCs. The IPO allowed us to raise sufficient capital to keep the company afloat without having to give up control of it.

#7

I had the opportunity to manage the integration of the Opsware team into HP Software, and then to run the roughly $1 billion global software support business. With 1,500 employees scattered across every major global market, I logged more airline miles than I have ever done in my professional life.

#8

Angels are typically individuals who invest in very-early-stage startups. In Silicon Valley in 2007, the angel community was small, and there were not many institutional seed funds, so angel investing was dominated by a loose collection of individuals who were writing checks out of their personal accounts.

#9

The second material transformation in the startup ecosystem was the advent of an incubator known as Y Combinator, which created startup school. It turned out nearly 1,600 promising startups, including some very well-known success stories such as Airbnb, Coinbase, Instacart, and Stripe.

#10

The founding of Andreessen Horowitz in 2009 was informed by the idea that tech startups are essentially innovative product or service companies. Thus, the something more that Marc and Ben provided their clients was a network of people and institutions that could help improve the prospects of founder CEOs becoming world-class CEOs.

#11

The best way to set up a successful marriage between entrepreneurs and VCs is to make sure everyone understands how VC works. So now it’s time to dig in.
Insights from Chapter 2

#1

Venture capital is typically used to fund technology startups, but not all venture-funded companies are technology companies. For example, Staples, Home Depot, Starbucks, and Blue Bottle Coffee were all funded by venture capital, and are all non-technology businesses.

#2

VC is a source of funding for companies that are not otherwise good candidates for funding from more traditional financial institutions. Equity, in the form of a financial investment in exchange for an ownership interest in the company, is permanent capital that does not have to be returned.

#3

If you are a founder of a company, and you have the choice between debt and equity, choose equity. It is the best option for businesses that are not generating near-term cash flow, are very risky, and have long illiquidity periods.

#4

There are three types of people involved in venture capital: investors, venture capitalists, and entrepreneurs. The investor puts money into a venture capital fund, and the VC takes that money to invest in upward-bound startups.

#5

The median returns of VC firms are not worth the risk or the illiquidity that the average VC investor has to put up with. In fact, the median returns in VC were 160 basis points below those of the stock market in 2017.

#6

The likelihood of investing in one of the few firms that generates excess returns is small for institutional investors. The results generated by those firms are likely to be in the long tail of returns that are subpar.

#7

Signaling matters in the venture world. The brand of ABC Ventures ensures that the next entrepreneur who thinks he is starting the next Facebook believes that taking an investment from ABC Ventures will increase his likelihood of success.

#8

VC investing is a zero-sum game. There is only one winner and a lot of losers in most financing rounds, and the return on that first round of investment goes to a small set of fortunate investors.

#9

Venture capital is restricted to accredited investors, who are typically people who have achieved some level of financial success. The theory of accreditation is that wealth equates to investment sophistication.

#10

The top venture capital firms are extremely difficult to break into and become a part of. It takes a lot of positive signaling to attract the best entrepreneurs, and it's hard to generate the returns needed to attract those entrepreneurs if you don't have the brand name.

#11

The distribution of at bats for VCs is similar to that of baseball players. Good VCs get a hit about five times out of ten at bats, while bad ones get a hit only once out of ten at bats.

#12

The at bats per home run is the most important statistic for a baseball player. In venture capital, all we care about is the at bats per home run. The difference between a top-performing venture fund and a poor-performing one is not the batting average, but rather the at bats per home run.

#13

The venture capital industry is a small business that invests in companies, and the impact of these companies’ products is felt well above their weight.

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Summary of Scott Kupor's Secrets of Sand Hill Road , livre ebook

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