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Real Venture Capital

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Real Venture Capital

Building International Business

Palgrave Macmillan,

15 min read
10 take-aways
Audio & text

What's inside?

Investing real venture capital is more like getting married than dating.

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Editorial Rating

7

Qualities

  • Applicable

Recommendation

This brief book offers a sound introduction to the fundamentals of venture capital investing. Though it emphasizes the United Kingdom, it illustrates the state of the venture capital business in other nations as well. Richard Thompson gives a straightforward explanation of what “real venture capital” is. He distinguishes venture capital for new business development from private equity, or refinancing, for established companies. Case studies and anecdotes from the author’s own experience support his plain, commonsense recommendations. While this book will be particularly appropriate for readers in the U.K., getAbstract also recommends it to any reader seeking a short, practical guide to the business of investing venture capital.

Summary

Venture Capital and Private Equity

Investing venture capital can be a high-return, low-risk business. But the term “venture capital” has many connotations, not all of them positive. In the United Kingdom, venture capital investment is widely denounced as a game for fast buck artists. But “real venture capital” helps new or existing companies grow; the investor acts as a “positive partner to the entrepreneurs and executives” of those firms. The U.K. economy needs companies that begin small, grow and expand abroad. The government cannot stand in the place of venture capitalists because it acts too slowly, even when business conditions demand rapid action.

Investors of real venture capital commit to collaborate over the long term with company founders and managers. They bring valuable insight and expertise to businesses. Typically, venture capitalists aim for fat returns on investments in common equity. When venture capitalists own common stock, their interests are aligned with those of other common shareholders.

In the U.K., disappointing returns on venture capital investments in new businesses led to increased infusions of private equity in existing businesses...

About the Author

Richard Thompson is a Cambridge science graduate who subsequently qualified in both chartered engineering and management consultancy. He has co-founded and chaired several successful venture capital firms over a 30-year span.

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