Secrets of Sand Hill Road: Venture Capital—and How to Get It
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- Type：Epub+TxT+PDF+Mobi
- Create Date：2021-05-12 11:53:22
- Update Date：2025-09-06
- Status：finish
- Author：Scott Kupor
- ISBN：0753553961
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Summary
'Worth far more than its cover price 。。。 I wish I’d had it available to me when I was first looking for startup funding' -- Eric Ries
Every startup needs capital， and ambitious startups seek it on Sand Hill Road – Silicon Valley’s dream street for entrepreneurs。 That’s where you’ll find the biggest names in venture capital， including the famed VC firm Andreessen Horowitz， where lawyer-turned-entrepreneur-turned-VC Scott Kupor serves as managing partner。
Whether you’re trying to get a new company off the ground or scale an existing business to the next level， you need to understand how VCs think。 Secrets of Sand Hill Road is the first book that shows you exactly how VCs decide where and how much to invest。 It will help you get the best possible deal and make the most of your relationships with VCs。 You’ll learn， for instance:
-- Why most VCs typically invest in only one startup in a given business category
-- Why the talent you need most when raising venture capital is your storytelling ability
-- How to handle a 'down round'， when you have to raise funds at a lower valuation than in your previous round
-- Why bridge financing （reopening your last round to existing investors） is generally a bad idea
-- What to do when VCs get too entangled in the day-to-day operations of your business
-- Why you need to build relationships with potential acquirers long before you decide to sell
Filled with Kupor’s firsthand experiences， insider advice， and practical takeaways， Secrets of Sand Hill Road is the guide you need to turn yourstartup into the next unicorn。
Every startup needs capital， and ambitious startups seek it on Sand Hill Road – Silicon Valley’s dream street for entrepreneurs。 That’s where you’ll find the biggest names in venture capital， including the famed VC firm Andreessen Horowitz， where lawyer-turned-entrepreneur-turned-VC Scott Kupor serves as managing partner。
Whether you’re trying to get a new company off the ground or scale an existing business to the next level， you need to understand how VCs think。 Secrets of Sand Hill Road is the first book that shows you exactly how VCs decide where and how much to invest。 It will help you get the best possible deal and make the most of your relationships with VCs。 You’ll learn， for instance:
-- Why most VCs typically invest in only one startup in a given business category
-- Why the talent you need most when raising venture capital is your storytelling ability
-- How to handle a 'down round'， when you have to raise funds at a lower valuation than in your previous round
-- Why bridge financing （reopening your last round to existing investors） is generally a bad idea
-- What to do when VCs get too entangled in the day-to-day operations of your business
-- Why you need to build relationships with potential acquirers long before you decide to sell
Filled with Kupor’s firsthand experiences， insider advice， and practical takeaways， Secrets of Sand Hill Road is the guide you need to turn yourstartup into the next unicorn。
Reviews
Jaume Sués Caula
，
Libro más técnico de lo que esperaba， muy centrado en emprendedores que están levantando capital。 Excelentes consejos explicados con el suficiente rigor para guiar al neófito de las finanzas que no le impidió fundar una start up de éxito y en crecimiento。
Samuel Veloso
，
From his experiences as both early employee and investors， Scott does a superb job in providing intel and insights on how the VC industry operates。From deal sourcing to return performance calculation， he pictures every angle of this booming and impressive industry while generously indicating how each of these aspects might affect the entrepreneur。The book was straightforward and simple to grasp。 I strongly recommended its reading for anyone aiming to spot a place as an entrepreneur， investor or From his experiences as both early employee and investors， Scott does a superb job in providing intel and insights on how the VC industry operates。From deal sourcing to return performance calculation， he pictures every angle of this booming and impressive industry while generously indicating how each of these aspects might affect the entrepreneur。The book was straightforward and simple to grasp。 I strongly recommended its reading for anyone aiming to spot a place as an entrepreneur， investor or employee。 。。。more
Omar Delawar
，
With the advent of countless new tech start-ups in the early 2000s， the relationship between venture capitalists （VCs） and entrepreneurs changed significantly。 Nowadays， one of the main characteristics VCs look for in companies is a founder who has unique insight into the problem his product is trying to solve。 Key to getting VCs on board with your product is mastering the art of the pitch， which involves exhibiting a willingness to adapt while still being 100 percent committed to the validity o With the advent of countless new tech start-ups in the early 2000s， the relationship between venture capitalists （VCs） and entrepreneurs changed significantly。 Nowadays， one of the main characteristics VCs look for in companies is a founder who has unique insight into the problem his product is trying to solve。 Key to getting VCs on board with your product is mastering the art of the pitch， which involves exhibiting a willingness to adapt while still being 100 percent committed to the validity of your idea。 Once you get funding from VCs， the challenge then becomes maintaining positive relationships with them; a good term sheet can help with this。 And if you make it through to an IPO or acquisition， you’ll have joined the small club of founders who made it。 That is the message Scott Kupor is trying to convey in this insightful look into the world of VC's。 Overall a highly recommended read for those interested in the subject。Readability: Hard ---o- Easy Practicality: Low ---o- High Insights: Few ---o- Many Length: Long ---o- Short Overall: Bad ---o- Amazing 。。。more
Jonathan Beigle
，
As Kupor says， this is not meant to be the VC Bible and as others have said， there aren't really many （if any） "secrets。" However， I do think this is a must-read for anyone thinking of raising money for their business from outside investors。 I'm currently one of those people （looking to raise $150M-$250M， and this was a last minute find for me on something to help me get my head around raising capital。 Over the last 3 weeks I've been speaking with many potential investors and Kupor helped me to As Kupor says， this is not meant to be the VC Bible and as others have said， there aren't really many （if any） "secrets。" However， I do think this is a must-read for anyone thinking of raising money for their business from outside investors。 I'm currently one of those people （looking to raise $150M-$250M， and this was a last minute find for me on something to help me get my head around raising capital。 Over the last 3 weeks I've been speaking with many potential investors and Kupor helped me to get my head around how they think。 I learned some interesting things， but as a 17-year veteran of the investor world， I wouldn't say anything was a huge surprise to me。 I'm planning to suggest to my investment banker that he have all of his first-time entrepreneur clients read this book before they start raising money。 It would be a big help to them。 。。。more
Mell Aguiar
，
A good introduction to venture capital。 I especially liked the use of court cases to demonstrate the weight of fiduciary duties The term sheet chapters were a little hard to get through but he made things fairly clear I wish he had expanded on the last part， though。。。 He points out that companies are staying private longer， meaning that regular people who want to buy public stock lose out on a lot of the major growth （as companies are getting initial funding from investors in the private market） A good introduction to venture capital。 I especially liked the use of court cases to demonstrate the weight of fiduciary duties The term sheet chapters were a little hard to get through but he made things fairly clear I wish he had expanded on the last part， though。。。 He points out that companies are staying private longer， meaning that regular people who want to buy public stock lose out on a lot of the major growth （as companies are getting initial funding from investors in the private market） and so the future of VC should move towards democratizing access to capital。 How do we go abt doing that？ Is it even enough？ Time to find another book I guess lol 。。。more
Olatomiwa Bifarin
，
Secrets of Sand Hill Road is a pretty informative book to explore the world of VC。 Scott describes what VC is， how they chose startups to invest in， their limited partners， what to think about when forming your startup。 Significantly， he went through the details of VC term sheets （which I gracefully left for another day， if I will need it。） And the two scenarios of a good exit （M&A and IPO。）
Linxi Chang
，
Good 101 for founders and aspiring VCs。 Exit landscape is evolving （e。g。 SPAC， late-stage growth equity） — author could discuss these more thoroughly in next edition， assuming there will be one。
Jake Meadows
，
Insightful and detailed introduction to the world of venture capital。 Definitely a useful overview for anyone thinking about raising VC。
Matthew Jordan
，
Probably better as an MBA course worksheet than an audiobook。 The first part of the book was easy on the ears—qualitative descriptions of what VC and the tech ecosystem are all about—but the second half was unintelligible without a calculator。 This book is definitely not for the casual VC fan。 You should really only pick it up if you're starting your own company or studying for a business/finance exam。 That being said， I do like how the book took knowledge that is typically gatekept by VCs and m Probably better as an MBA course worksheet than an audiobook。 The first part of the book was easy on the ears—qualitative descriptions of what VC and the tech ecosystem are all about—but the second half was unintelligible without a calculator。 This book is definitely not for the casual VC fan。 You should really only pick it up if you're starting your own company or studying for a business/finance exam。 That being said， I do like how the book took knowledge that is typically gatekept by VCs and made it publicly accessible。 I think that's a noble thing， and more people should probably do it。 。。。more
Joc Cing
，
Very insightful explanations made accessible for the general public。 A must read for entrepreneurs and CEOs。
Ruslan Vasylev
，
Good read， thank you。
Ezequiel
，
Buena introducción al mundo del Venture Capital。 Tanto desde el punto de vista del emprendedor （founder） como del VC。
Austin
，
Informative read on the incentives and roles within the VC ecosystem。 Had hoped to get a lower level dive into the investing choices & strategies of VC firms， but that probably that is something that is too nuanced to be covered in this book。 Surprisingly this book taught me a better model of how to think about my own asset management
Benjamin
，
Good review on the VC world
Amin Delshad
，
A very detailed and informative intro into the functions of a VC。 Thanks to A16Z for being so open in providing us with so much quality content。
Simon Semelin
，
Great book that every entrepreneur trying to fund their business should read。 Heavy in US-centric things and lingo but still relevant for anyone trying to create a successful company。 rEAD
Karol Traczykowski
，
A very nice „technical” syllabus on the mechanics of VCs， termsheets， board of directors， exits， etc。Minus one star as big parts of the book focus on the US law obigations， so might not be 100% useful for non-US readers。
Christiane
，
A must read if you're at a startup （considering） going into their Series A。 Very well written， lays things out clear but is not afraid to bring out the numbers and task the reader to do a benefit analysis of different scenarios。 The inclusion of an example term sheet is an unexpected level of detail。 You could choose to leave part of the book for when you're looking to exit。 A must read if you're at a startup （considering） going into their Series A。 Very well written， lays things out clear but is not afraid to bring out the numbers and task the reader to do a benefit analysis of different scenarios。 The inclusion of an example term sheet is an unexpected level of detail。 You could choose to leave part of the book for when you're looking to exit。 。。。more
Panz
，
A must read for anyone interested in this space。
Neha Satapathy
，
dense but informative read - would only recommend if you have a hardcore interest in understanding the dynamics between startups and VC （pre-IPO funding and motivations）
Krzysiek Pilat
，
First part of book is really great second one is quite simple。 I think is must read book for all startupers
Dan Croak
，
Crisp， clear descriptions of how venture capital works
Ben Wiener
，
Must-read for anyone on either side （founder or VC） of the venture capital table
Pavel Annenkov
，
О ЧЕМ КНИГА:Описание мира VC из первых рук от партнёра Andresseen Horowitz。 Автор показывает нам， как партнеры венчурных фондов принимают свои решения об инвестициях и что нужно предпринимателям， чтобы получить финансирование от фондов。 Отличный раздел о том， как строить отношения с VC через Совет Директоров и не потерять контроль над бизнесом。В книге есть подробное описание условий Term Sheet - одного из главных инвестиционных документов。 А также детальный разбор нескольких реальных венчурных с О ЧЕМ КНИГА:Описание мира VC из первых рук от партнёра Andresseen Horowitz。 Автор показывает нам， как партнеры венчурных фондов принимают свои решения об инвестициях и что нужно предпринимателям， чтобы получить финансирование от фондов。 Отличный раздел о том， как строить отношения с VC через Совет Директоров и не потерять контроль над бизнесом。В книге есть подробное описание условий Term Sheet - одного из главных инвестиционных документов。 А также детальный разбор нескольких реальных венчурных сделок с объяснением проблемных вопросов в каждой из них。ГЛАВНАЯ МЫСЛЬ КНИГИ: - Многие основатели стартапов больше поглощены продуктом и рынком и не думают о том， как правильно привлекать финансирование в свои проекты。 Это большое упущение， так как фандрайзинг - это важнейшая часть развития бизнеса。ЗАЧЕМ ЧИТАТЬ ЭТУ КНИГУ？- Чтобы понять， как работают VC и как принимают решения в венчурных фондах。МЫСЛИ И ВЫВОДЫ ИЗ КНИГИ:- Отношения между фондом и основателями стартапа должно быть настоящим партнерством， а не вымученным союзом。 - Сейчас в истории первый раз наступил момент， когда мы ограничены выбором хороших стартапов и не ограничены в доступном капитале для их финансирования。- Венчурный фонд настолько хорош， насколько хороши предприниматели， в которых он вложился。 Бизнес строят предприниматели， а не VC。 Они только дают деньги и помогают советом и связями。- На венчурный фонд можно смотреть не только как на структуру， которая профинансирует стартап， но и на источник новых знаний， связей и бизнес опыта， которому она научит предпринимателя。 Это подход a16z。- Правильная оценка компании на каждом раунде очень важна。 Нужно продавать такой размер доли и по такой цене， чтобы хватило на развитие бизнеса до следующего раунда。- Оценка бизнеса стартапа - это больше искусство， чем наука。- No-shop условие на 1 месяц со стартапом очень важно。- В будущем могут распространиться более простые и дешевые источники финансирования для стартапов（краудфандинг， ICO и тп。） и тогда ценность VC будет не только в даче денег， но и в предоставлении другого ресурса。 Об этом венчурным инвесторам надо задумываться уже сейчас。ЧТО Я БУДУ ПРИМЕНЯТЬ:- Чек-лист для оценки условий Term Sheet。ЕЩЕ НА ЭТУ ТЕМУ:📗Бен Хоровитц «Легко не будет» 。。。more
Rohan
，
This could have been summarized in a long-form article
Kamil Sabatowski
，
W 2013 - jeszcze podczas studiów licencjackich negocjowaliśmy umowę inwestycyjną z jednym z warszawskich funduszy VC。 Wtedy moja wiedza w tym obszarze była okrojona （aby nie powiedzieć， że znikoma）。 Nie bardzo też wiedziałem - skąd czerpać tego typu informacje。 Na ratunek przyszli prawnicy， ale koszt konsultacji nie był niski。 Doradcy wyjaśnią wiele kwestii， ale problem pojawia się wtedy， kiedy temat jest tak skomplikowany， że nawet nie za bardzo wiadomo o co pytać。 Problemem jest też to， że to W 2013 - jeszcze podczas studiów licencjackich negocjowaliśmy umowę inwestycyjną z jednym z warszawskich funduszy VC。 Wtedy moja wiedza w tym obszarze była okrojona （aby nie powiedzieć， że znikoma）。 Nie bardzo też wiedziałem - skąd czerpać tego typu informacje。 Na ratunek przyszli prawnicy， ale koszt konsultacji nie był niski。 Doradcy wyjaśnią wiele kwestii， ale problem pojawia się wtedy， kiedy temat jest tak skomplikowany， że nawet nie za bardzo wiadomo o co pytać。 Problemem jest też to， że to jednak dosyć praktyczny obszar i konsultowanie się z prawnikami może wprowadzić jeszcze większy zamęt。 Książka Kupora dostarcza bardzo szerokiego kontekstu。 Powiększa perspektywę i sprawia， że przedsiębiorcy i menedżerowie dostrzegą powiązania na rynku VC， motywacje podmiotów działających w tym obszarze， a także konsekwencje decyzji， które podejmowane są na różnych etapach w cyklu życia przedsiębiorstwa。Książka "Tajemnice Sand Hill Road" nie sprawi， że negocjując term sheet będziesz mógł/mogła zrezygnować z konsultacji prawnych。 Sprawi natomiast， że - uzbrojony/a w nową wiedzę - o wiele lepiej przygotujesz się do rozmów， poszerzając horyzont czasowy decyzji， które wkrótce być może podejmiesz。Zrozumienie powyższych kwestii pozwala na wypracowanie wspólnego kierunku， razem z funduszem VC - a to jest niezbędne do tego， aby stać się prawdziwymi partnerami， posiadając uspójnione cele。 Szkoda， że nie miałem okazji przeczytać tak dobrze napisanego kompendium wiedzy 7 lat temu。Pozycję oceniam na 7/10。 Daję 7， a nie 8 bo nie wszystkie informacje są aplikowalne na rynku polskim - na szczęście zdecydowana większość będzie do wykorzystania。 A wszystkie paradygmaty myślowe już z pewnością。Warto！ 。。。more
Tina Haibodi
，
Might officially be one of my favourite books on VC
LT
，
I finally finished， but it probably took me four months lol。 And overall， I think it is worth for the explanation of the term sheet alone （like what a lot of other reviews have said）。 It definitely reads more like “Basics of Sand Hill Road” rather than “Secrets of Sand Hill Road。”There were two details that I really loved: - Kupor defaults to the female pronoun （she/her） for all of his descriptions of venture capitalists and founders/CEOs。 It was a small gesture， but I appreciated it so much。 Gr I finally finished， but it probably took me four months lol。 And overall， I think it is worth for the explanation of the term sheet alone （like what a lot of other reviews have said）。 It definitely reads more like “Basics of Sand Hill Road” rather than “Secrets of Sand Hill Road。”There were two details that I really loved: - Kupor defaults to the female pronoun （she/her） for all of his descriptions of venture capitalists and founders/CEOs。 It was a small gesture， but I appreciated it so much。 Grateful that he has three daughters and kept them in mind when he was writing this book。 - Kupor’s legal background; I loved reading about things like entire fairness （evaluation of fair process and fair price） for board members under the Business Judgement Rule。 I also loved reading about In Re Trados， Carsanaro v。 Bloodhound Technologies， and Revlon， Inc。 v。 MacAndrews & Forbes Holdings， Inc。 I’ve also heard about mergers and acquisitions from afar， but Kupor brought them to life。 I’m definitely still super confused career wise， but I think it might be pretty interesting to be a startup lawyer。 I digress， but I feel that there is a lot of unnecessary antagonism toward the finance industry。 Investment bankers play such a key role in underwriting IPOs。 They work directly with institutional investors， create an orderly trading environment， and work post-IPO to help with M&A advice， follow up financings， debt issuances， and other capital markets issues。 I felt the same way after reading Stephen Schwarzman’s autobiography。 Leveraged buyouts can help revitalize companies， leading to increased efficiency for the company and returns for the investor。 I know I’m being brainwashed， so I might as well as read Barbarians at the Gate to get rid of my rose-tinted glasses。 。。。more
Daniel Olshansky
，
This book is useful and full of insightful conversations but doesn't introduce anything new if you've been immersed in the tech industry for a while。 Reading articles by the likes of Paul Graham or Marc Andressen， listening to podcasts or working at large tech companies exposes you to all the concepts introduced in this book。I MAY pick up this book again when I need to raise money， but not something I'm interested in finishing right now。 This book is useful and full of insightful conversations but doesn't introduce anything new if you've been immersed in the tech industry for a while。 Reading articles by the likes of Paul Graham or Marc Andressen， listening to podcasts or working at large tech companies exposes you to all the concepts introduced in this book。I MAY pick up this book again when I need to raise money， but not something I'm interested in finishing right now。 。。。more
Adolfo Zavala
，