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Mastering the VC Game: A Venture Capital Insider Reveals How to Get from Start-up to IPO on Your Terms Hardcover – April 29, 2010

4.4 4.4 out of 5 stars 507 ratings

Entrepreneurs who dream of building the next Amazon, Facebook, or Google have the opportunity to take advantage of one of the most powerful economic engines the world has ever known: venture capital. To do that, you need to woo, impress, and persuade venture capitalists to back your endeavor. That task alone is a challenge. But finding and choosing the right investor can be harder still. Even if you manage to get backing, you want your VC to be a partner, not some dictator who will undermine your vision and take control of your life's work.

Jeffrey Bussgang is one of a very few people who have played on both sides of this high-stakes game. By his early thirties, he had helped build two successful start-ups-one went public, the other was acquired. Now he uses his experience and unique perspective on "the other side" as a venture capitalist helping entrepreneurs bring their dreams to fruition.

In the book, Bussgang offers high-level insights, colorful stories, and practical advice gathered from his own experience as well as from interviews with dozens of the most successful players on both sides of the game, including Twitter's Jack Dorsey and LinkedIn's Reid Hoffman. He reveals how to get noticed, perfect a pitch, and negotiate a partnership that works for everyone.

An insider's guide to the secrets of the world venture capital,
Mastering the VC Game will prove invaluable for entrepreneurs seeking capital and successful partnerships.

To learn more, visit JeffBussgang.com.

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Editorial Reviews

Review

"Finding the right VC for you and your company can be a challenging task. Bussgang's recounting of his experience gives a unique perspective on the VC world and is a compelling read for entrepreneurs."
-Tony Hsieh, CEO, Zappos.com

"
Mastering the VC Game is part how to and part war story. It is the best kind of book: a fun and educational read."
-Fred Wilson, managing partner, Union Square Ventures

"A 360-degree perspective on the venture capitalist-entrepreneur virtuous cycle. Read this to understand what it takes to be a catalyst to the best economic driver the world has ever known."
-Tim Draper, managing director, Draper Fisher Jurvetson

"Jeffrey Bussgang offers practical advice about raising venture capital from the right people at the right time for the right project. The book is insightful for entrepreneurs and venture capitalists alike."
-William A. Sahlman, professor, Harvard Business School and coauthor,
New Business Ventures and the Entrepreneur

"This book is excellent. It is not only a great read (I couldn't put it down) but also extremely informative on the process and the whole larger system in which VCs and entrepreneurs operate."
-William Aulet, managing director, MIT Entrepreneurship Center

"Bussgang's compelling book provides endless insights into the global world of venture capital. The discussions about China are particularly noteworthy. It is very valuable reading for entrepreneurs who aspire to scale their business into long-term leading enterprises."
-Jim Breyer, Managing Partner, Accel Partners

"Jeff Bussgang has written the definitive book on how venture capital works. I've read a lot of books on this subject, was an entrepreneur for 10 years and have been a VC for 15 years. Jeff's book is by far the best to date on this subject."
-Brad Feld, Managing Partner, Foundry Group

"There are tons of books to help entrepreneurs understand things like accounting, marketing, and sales. But until now you were left to fend for yourself to grasp the insider game of venture capital funding. Read this book right now so you can look your potential VC in the eye with confidence."
-David Meerman Scott, bestselling author of
The New Rules of Marketing & PR

From the Author

I wrote this book to demystify the VC world for entrepreneurs, having seen both sides over many years.

I hope the book will help entrepreneurs level the playing field when pursuing VC capital so that they can secure the necessary resources to achieve their vision.  In the book, I reveal industry insights drawn from my experience as a practicing VC.  I also include the perspectives of some of the leading entrepreneurs and VCs in the industry, who were kind enough to divulge their own secrets about their approach to the business. I wrote the book not only to share this knowledge, but also because I strongly believe in the importance of the venture-backed start-up to our economy and our society as a whole.

Over the next decade, hundreds of billions of dollars will be invested in new or young companies and it is critical that this capital be invested wisely.  Mastering the VC Game will help entrepreneurs be more effective in financing and launching start-ups and in creating companies that benefit us all, while also providing insight into the critical role these enterprises play in the global economy.

I wrote this book to promote entrepreneurship, not make money.

Therefore, I have chosen to donate a portion of my proceeds to Endeavor, a non-profit dedicated to transforming emerging market economies through entrepreneurship.  Founder/CEO Linda Rottenberg was a college classmate of mine with whom I did volunteer work in Boston's inner city schools and I have always admired her passion for helping others help themselves.  Endeavor entrepreneurs have created over 38,000 jobs throughout the world.  To learn more visit endeavor.org.

Product details

  • Publisher ‏ : ‎ Portfolio; First Edition (April 29, 2010)
  • Language ‏ : ‎ English
  • Hardcover ‏ : ‎ 256 pages
  • ISBN-10 ‏ : ‎ 1591843251
  • ISBN-13 ‏ : ‎ 978-1591843252
  • Item Weight ‏ : ‎ 15.2 ounces
  • Dimensions ‏ : ‎ 6 x 1 x 9 inches
  • Customer Reviews:
    4.4 4.4 out of 5 stars 507 ratings

About the author

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Jeffrey Bussgang
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Jeffrey Bussgang is a venture capitalist, entrepreneur, and entrepreneurship professor at Harvard Business School (HBS). His venture capital firm, Flybridge Capital Partners, has over 1 billion US dollars under management and made investments in over 200 technology-focused startups since inception over eighteen years ago (including Bowery Farming, Chief, Codecademy, FalconX, Habi, and MongoDB). At HBS, he teaches Launching Technology Ventures, a class for MBA students starting companies or pursuing careers in startups, and Venture Capital Journey, a field course for aspiring VCs.

Prior to becoming a venture capitalist, Bussgang was an entrepreneur, serving as co-founder and president of Upromise and an executive team member at Open Market (IPO 1996). He is the author of two books: Mastering the VC Game, an essential guide for entrepreneurs raising capital and building their startups, and Entering StartUpLand, an essential guide to finding the right startup job, as well as over fifty HBS case studies, teaching notes and book chapters on startup management and entrepreneurship. He started his career with The Boston Consulting Group and holds an MBA from HBS and a BA in computer science from Harvard College.

Bussgang writes a popular blog and LinkedIn Newsletter (Bussgang's Bullets) and lives in the Boston area with his wife.

Customer reviews

4.4 out of 5 stars
4.4 out of 5
507 global ratings

Top reviews from the United States

Reviewed in the United States on May 30, 2010
I purchased Mastering the VC Game after Fred Wilson blogged about it at [...]. I thought the book was entertaining and well-written. Having followed vc blogs for quite some time now, I can't say that there was a lot of new information in the book, but I did think that it brought clarity to some issues that I didn't completely understand.

For example, in valuation there is a common misconception that the higher the valuation, the better the deal is for the management team. The problem is that entrepreneurs often forget to factor in the size of the option pool set aside for future employees. To account for this, Bussgang introduces a metric called the `promote', which is the (founding team's ownership percentage)*(post money valuation). Even though the book's explanation is nearly identical to the explanation on Bussgang's blog a year ago, it made so much more sense this time.

The reason for this newfound clarity is that the book introduces topics in a natural way. Bloggers often have trouble doing this and can seem random and haphazard. So when the `promote' is explained in the context of an entire chapter about valuation, suddenly it makes sense.

Another reason I was able to appreciate the nuances in the book is that I've been following vc/entrepreneurship blogs obsessively for two years now. What I most appreciate is that the book was able to touch upon so many pieces of information that I had to internalize bit-by-bit over two years. In just a few hours, you can get a broad overview of vc, dive into interesting stories, and get surprisingly detailed information that isn't widely available except in blog posts.

This immediately reminded me of Rework by the guys at 37signals. I was really disappointed by that book and thought it was a waste of time. It was incredibly repetitive and at some points I felt like I was re-reading a combination of the 37signals blog and Getting Real. Bussgang's book is still derived from blog posts, but rather than being a rehash, it brings clarity to a scattered body of knowledge. If you're interested at all in vc/entrepreneurship, and especially if you're new to blogging, I highly recommend the book.
One person found this helpful
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Reviewed in the United States on May 22, 2015
This was a great book to get you warmed up for venture capital. The stories and the outline provide great context for what venture capital is and how it works. I was also reading Venture Deals at the some time which is a more thorough approach to covering terms, but this provides reach stories and cases the other does not. I recommend covering this as a great introduction before covering more dense (and recommended) reads such as Venture Deals which covers more terms in an academic approach, but gives the real opinion of the authors. This book gave the stories and context that made it all easier to remember.
2 people found this helpful
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Reviewed in the United States on November 21, 2023
Enjoyed the rich descriptions of the VC world from an inside perspective. The author made the VC world come alive
Reviewed in the United States on November 8, 2023
Fast shipping: I order this and other Amazon’s items and this arrives earlier than others. Quality: I love when I see the book even has book cover. The real cover when you really want to protect the book. This is a very well treated book. Thank you so much!
Reviewed in the United States on September 29, 2011
I bought this book thinking it would be more like a 'how-to' 'step-by-step' but it was more a biography of the big kahuna's in the VC world. Mr. Bussgang interviewed several of them and basically added tid-bits in along with their stories.

Overall its a good read and helpful in seeing into the mind of how VC investors think and what they are looking for. It was also very informative on how the VC crew get along with and how relationships are made or busted with the CEOs of the start-up companies.

I gave the book four stars only because it wasn't filled with more 'how-to' content. That being said, I still recommend this book. Hope this helps.
5 people found this helpful
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Reviewed in the United States on June 17, 2010
Unlike large corporations that have long institutional memory on how things get done, together with veterans in place that serve as mentors to the newcomers, there is relatively little of the same in the startup world. Yet, there is plenty of new entrepreneurial blood jumping in every day and in need of direction. Mastering the VC Game goes a long way toward filling the void.

Bussgang notes that his focus is on early stage ventures, though I would suggest this book is an important tool for startups anywhere between the drawing board and acquisition. The depth on subjects, from how to do a pitch, to levels of equity participation and potential misalignment of incentives is very helpful. The many quotes from actively engaged entrepreneurs and anecdotes of companies that we all know, makes it current and real.

And there is some humor along the way; I found myself laughing out loud at Bussgang's illustration of the bartering that can take place among VC's with terms like "buddy pass" and "rock fetch".

On successful entrepreneurs, there are parallels to Malcom Gladwell's `Outliers' in Bussgang's mention of David Hornic living in the same dorm with Jerry Yang, and of his own family roots. Ten years of doing start ups should equate to about 10,000 hours as the theory goes.

Bussgang's insight to board expectations and interaction, as well as the classic startup plot scenarios are useful reading. Entrepreneurs will do better if they come to the game understanding that in as much as their business model and talents may be unique, there are patterns, good and bad, that repeat themselves. To be aware of this up front can make the difference between going platinum and hitting the ground before that airplane can fly.

Top reviews from other countries

Client d'Amazon
1.0 out of 5 stars hundreds of pages of condescending self promotion
Reviewed in France on November 12, 2023
The author is condescent as hell, lacks intelligence and is very eager to promote himself as a result of that, so the journey is more to convince the reader about how impressive the writer is than anything else.

But reality is having to read hundreds of pages of self promotion to get the 5 pages that really explains what vc life looks like and what they are after is a pain you should probably avoid.

At the end of the book you’ll probably want to avoid working with a vc at all and realize that you are the entrepreneur building the business so your entiteled to all of the returs and having to suffer the constant ego pumping anecdotes is probably not worth the money they can provide…
Vitor Lupo
5.0 out of 5 stars Worth reading
Reviewed in Brazil on January 11, 2021
worth reading. one of my main worries regarding the book was its age, however the author provides a comprehensive overview of the industry with insights that don't seem to be seasoned. topics covered include the VCs structure and niches of investment, pitches and deal making, VC - entrepreneur dynamics once the deal is made and the company starts to evolve, and finally the possible routes for exit and international VC benchmarks
Amazon-Kunde
5.0 out of 5 stars absolutely amazing book! Must read for any entrepreneurs!
Reviewed in Germany on February 23, 2022
Its the book you want to read if you want to know how to get insider game of venture capital funding!
Amazon Customer
5.0 out of 5 stars Accessible practitioners guide - one of the best
Reviewed in the United Kingdom on May 19, 2021
Of the many PE / VC guides and textbooks that I have come across this is the most accessible. All the concepts are explained and examples are related as stories. Those looking for the formulas etc should revert to textbooks but if you want to know how this industry works, its processes and what to consider when dealing with it, there is possibly no better short introduction. Easy and good read.
2 people found this helpful
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Global Traveller
5.0 out of 5 stars Easy read with tons of wisdom for anyone looking to develop a VC strategy !!
Reviewed in Canada on June 7, 2019
I am not seeking to raise money but I am working on developing an angel syndicate. While my understanding of the VC play is quite strong, I was looking to spend a weekend with a well structured read on the topic. Jeff has made this a really easy read full of amazing wisdom for anyone seeking to understand how the venture capitalists work. I would say this is a must read for anyone seeking to raise venture capital. It will give you the confidence that one needs before embarking on what can be a pretty demanding process. Highly recommended.