Venture Capital: A Practical Guide to Fund Formation and Management

Written by two of Boston’s most active and experienced early stage investors, Venture Capital: A Practical Guide to Fund Formation and Management is a handbook and desk reference written for fund managers who are launching new venture capital funds, and those who aspire to start funds in the near future. Experience has taught us there is more to running a successful venture fund than finding companies and hoping for big exits. In this book, we will discuss:

7 Critical Questions That All Venture Fund Managers Need To Consider

- What are the key factors to consider in defining your fund’s investment strategy?
- How do you go about raising capital for your fund?
- What are some of the biggest challenges faced by a fund manager?
- How do you structure a fund from both a legal and accounting standpoint?
- What types of skills do you need on your fund’s management team?
- What are the economics behind running a fund?
- How should a fund manager report fund activity and results to the fund stakeholders (i.e. investors or Limited Partners)?

Running an early stage venture fund can be interesting and rewarding work. But setting up and managing an investment fund takes significant time and effort. Given the relatively long life cycle of a startup company investment -- typically 10+ years before a successful investor outcome -- fund managers must be willing to commit their time and effort for at least a decade. Not everyone is willing to commit at that level. Whether you are thinking about setting up a new fund or already managing an active fund, make sure you know what the best practices are in fund management. This book will help you grasp the magnitude of the effort and determine whether you have what it takes to be successful.