Finance your company's growth without losing your stake in it
Too often, thanks to multiple rounds of equity investment, company founders wind up with only a small fraction of the businesses they start. But this situation isn't inevitable. The intelligent use of a variety of financing options - including debt financing - can help to maintain, or even grow, a founder's stake.
In All Money Is Not Created Equal: The Entrepreneur's Guide to Finding the Right Funding for Your Business, renowned Silicon Valley veteran David Spreng delivers an expert guide for entrepreneurs and founders seeking to maintain as much ownership stake as possible in the companies they create as they move through the various stages of the financing process. The book draws on the author's decades of experience as a venture capitalist, venture debt lender, and CEO of a publicly traded company in Silicon Valley, as well as interviews with entrepreneurs, board members, investors, and bankers.
Readers will also find:
- A well-rounded and insightful perspective on the financing process informed by industry veterans
- An informal and accessible exploration of a complex topic that remains critical to the success of entrepreneurs and founders
- Discussions of alternatives to equity financing, including debt financing, in the growth phase of startups
An essential handbook for startup founders, entrepreneurs, and managers, All Money Is Not Created Equal also deserves a place in the hands of company board members, venture capitalists, investors, and investment bankers interested in the company financing process.
Table of Contents
Foreword ix
Acknowledgments xi
Introduction xiii
Part One: Setting the Stage 1
Chapter 1: A Tale of Two Companies 3
Chapter 2: All About Growth: My Journey from Venture Capital to Venture Debt 17
Part Two: Startups: Understanding the Arena 29
Chapter 3: The Stages of a Startup 31
Chapter 4: Geography Matters - to a Point 45
Chapter 5: The Startup Ecosystem 53
Part Three: Getting the Money 65
Chapter 6: Your First Outside Investors 67
Chapter 7: What Kind of Money Is Right for Your Business? 75
Chapter 8: The Ins and Outs of Venture Capital 85
Chapter 9: Debt Is Not a Four-Letter Word 91
Chapter 10: What a Deal with Debt Looks Like 97
Chapter 11: Making the Most of Debt 109
Chapter 12: Options for Exits 119
Part Four: Making the Best Use of Your Money 129
Chapter 13: Bullshitters, Liars, and Jerks 131
Chapter 14: Bullshitters, Liars, and Jerks, Part 2: What You Need to Be on Guard For 137
Chapter 15: Your Team: Getting the Right People in the Right Jobs 143
Chapter 16: Founder versus CEO 151
Chapter 17: Getting the Most from Your Board 157
Chapter 18: The Moral Contract 165
Part Five: Going Forward 171
Chapter 19: Runway’s Story of Going Public 173
Chapter 20: Conclusion 183
Appendix 189
Index 211
