Insider Guide Careers in Venture Capital PHẦN 7 doc

the technology, and the entrepreneurs. One of the most important aspects of

due diligence is uncovering the emotional and intellectual makeup of the people

in whom the venture capitalist is investing.

Doing the deals is a tricky, complicated process, but it can be learned without

too much difficulty. That’s why partners will allow up-and-coming associates to

do deals with supervision (or support, depending on your viewpoint). There are

many different ways to structure deals. Venture capitalists learn how to negotiate

things like the percentage of equity they get, antidilution clauses, and number

of board seats, with an eye toward protecting their investments and preserving

win-win propositions with their entrepreneurs.

Managing their investments is the stage where venture capitalists can sometimes

make the difference between the success and failure of a start-up. Venture capitalists

with years of experience and a stable of investments can create relationships

among companies, help start-ups find professional management, introduce

companies to large potential customers, and help companies raise further

financing. Having a John Doerr sitting on your board of directors is somewhat

akin to having a wise uncle help you along the road to a successful IPO.

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