In this definitive book, industry experts Paul Gompers and Josh Lerner provide the first cool-headed explanation of the venture capital industry and the role it plays in our economy. They underscore that, regardless of the economic conditions, innovation is incredibly difficult to finance, take to market, and translate into value. While venture capital has evolved to address these problems-the industry has fueled innovation, economic growth, and wealth creation for decades-features of the venture industry have left it vulnerable to boom-and-bust cycles. In the near future, say the authors, the industry must transform dramatically, with important implications for industry players and the entrepreneurs and organizations they serve.
Drawing from compelling research and industry "war stories," Gompers and Lerner present a series of practical frameworks for understanding the relationships among venture capital, innovation, and entrepreneurial success. They demystify how the venture capital world operates, and outline the opportunities and obstacles faced by all players in this evolving arena. They explore:
- The problems entrepreneurs encounter in securing financing, and how the venture capital model can help innovators to resolve them
- How venture capitalists can effectively pursue promising opportunities while building a sustainable franchise
- How corporations, nonprofits, and government institutions can harness the power-and avoid the pitfalls-of the venture capital model when applying it in their own sectors
Whether the industry is enjoying an incredible growth spurt or weathering an economic slowdown, readers will find this book an immensely practical guide to leveraging the venture capital model to turn innovation into value.
"Gompers and Lerner have written the ultimate A to Z book of venture investing. If you want the definitive book that explains how venture capital works and why it is so important to our economy, this is it." Arthur Rock, Venture Capitalist
"Gompers and Lerner give valuable historical accounts coupled with insightful observations about the future of an industry that is still in its infancy-but growing up fast." Peter O. Crisp, Founder and former Managing Partner, Venrock Associates
"Gompers and Lerner provide a broad overview of the venture capital industry, offering valuable insights for anyone from seasoned practitioners to interested market observers. Richly illustrated with real-life examples, The Money of Invention fulfills a critical need with its treatment of the past, present, and future of an important factor in the world economy." David F. Swensen, Chief Investment Officer, Yale University, and Author of Pioneering Portfolio Management
Author Biography: Paul A. Gompers is a Professor of Business Administration and a Director of Research at Harvard Business School. Josh Lerner is a Professor of Business Administration at Harvard Business School. Both authors live in the Boston area.
|Publisher:||Harvard Business Review Press|
|Product dimensions:||6.46(w) x 9.52(h) x 1.13(d)|
About the Author
Josh Lerner is a Professor of Business Administration at Harvard Business School.
Table of Contents
|1||The Venture Capital Difference||1|
|Part I||The Entrepreneur's Challenge||19|
|2||The Problem: Financing Entrepreneurial Firms||21|
|3||The Financing Solution: Venture Capital||41|
|4||The Venture Capital Economy||61|
|Part II||The Venture Capitalist's Challenge||85|
|5||How Do Venture Organizations Work?||87|
|6||Boom and Bust in the Venture Industry||117|
|Part III||The Emulator's Challenge||143|
|7||The Corporate Venturing Experience||145|
|8||Designing a Successful Public Venturing Effort||169|
|9||Engineering International Venture Capital Success||191|
|10||Succeeding in the Next Venture Capital Revolution||225|
|About the Authors||281|