A VC Explains how VCs work

VCs have an outsized impact on startups, entrepreneurs, and the tech they invest in. But beyond the tweetstorms & headlines, the specifics of their business isn’t widely understood. Where does their money come from? How are their firms & funds structured? How does the pressure of returns impact their investment decisions?

In this video, Kate Mitchell, a partner at Scale and past chairman of the National Venture Capital Association, discusses what you should know about VCs, how you should think about fundraising, and how VCs can be surprisingly close to the companies they invest in.

Venture Capital Disrupts Itself: Breaking the Concentration Curse

Conventional investor wisdom holds that a concentrated number of certain venture firms invest in a concentrated number of companies that then account for a majority of venture capital value creation in any given year. Therefore, LPs seeking compelling venture capital returns should only commit to a handful of franchise managers. And those are precisely the managers that do not offer access. Thus, LPs are “cursed” and will never experience the differentiated return pattern offered by venture capital exposure.

As the venture capital industry and technology markets have evolved and matured, however, more managers are creating significant investment value for LPs, with value increasingly created through companies located outside
the United States and across a range of subsectors.

Gender and Venture Capital Decision-Making: The Effects of Technical Background and Social Capital on Entrepreneurial Evaluations

In the high-tech industry, women without technical expertise are less likely to be awarded venture capital than their male counterparts who lack this same technical expertise. This gender gap does not exist when comparing men and women who both possess technical skill.

This study from the Harvard Kennedy School explores the interaction of having a technical background with gender biases in performance evaluations of male and female entrepreneurs and their proposed ventures through an experimental design.

The Economic Impact of Venture Capital : Evidence from Public Companies 2015

This working paper from the Stanford Business School explores the economic impact of the venture capital industry.

Over the past 30 years, venture capital has become a dominant force in the financing of innovative American companies. From Google to Intel to FedEx, companies supported by venture capital have profoundly changed the U.S. economy.

Despite the young age of the venture capital industry, public companies with venture capital backing employ four million people and account for one-fifth of the market capitalization and 44% of the research and development spending of U.S. public companies. From research and development to employment to simple revenue, the companies funded by venture capital are a major part of the U.S. economy.

Startup Communities: Building an Entrepreneurial Ecosystem in Your City

Startup Communities documents the buzz, strategy, long-term perspective, and dynamics of building communities of entrepreneurs who can feed off of each other’s talent, creativity, and support.

Based on more than twenty years of Boulder-based entrepreneur turned-venture capitalist Brad Feld’s experience in the field, as well as contributions from other innovative startup communities, this reliable resource skillfully explores what it takes to create an entrepreneurial community in any city, at any time.

Along the way, it offers valuable insights into increasing the breadth and depth of the entrepreneurial ecosystem by multiplying connections among entrepreneurs and mentors, improving access to entrepreneurial education, and much more.

The First Venture Capitalist: Georges Doriot on Leadership, Capital, and Business Organization

This remarkable book chronicles the ideas of a great teacher, George Doriot, whose decades long career at the Harvard Business School inspired a generation of venture capitalists and Wall Street titans of a bygone era.

George Doriot was a remarkable individual who achieved success as a teacher, a businessman, and a general in the US Army. Some of his students at the Harvard Business School kept their notes from his course in their desk drawer throughout their business careers. Even if they did not go that far, they never forgot the man or his teachings; nor did the employees of the many companies which he launched as the president of American Research & Development Corporation.

This is the first book about George Doriot, and it is a perfect first book: it is in the form of a source book, drawing from the many facets of Doriot’s career as seen by many different people, and sometimes in Doriot’s own words. All the texts are interesting and highly readable.

NVCA Oral History Collection: Henry F. McCance

An oral history featuring Henry McCance, a veteran of the venture capital industry, who joined Greylock in 1969, where he’s presently Chairman Emeritus.

NVCA Oral History Collection: David Morgenthaler

An oral history featuring David Turner Morgenthaler, an American businessman who founded the venture capital firm Morgenthaler Ventures.

NVCA Oral History Collection: Alan Patricof

An oral history featuring Alan Patricof, a venture capital pioneer, who founded Greycroft, LLC in 2006.

Giving Notice: Why the Best and Brightest are Leaving the Workplace and How You Can Help them Stay

In today’s workplace, blatant discrimination has mostly been relegated to the dustbin of America’s past. However, in this book Freada Kapor Klein shows how even well-intentioned people can harbor unconscious biases that perpetuate stereotypes. Each year more than two million professionals and managers leave their jobs, pushed out from the pressure of small comments, whispered jokes, and not-so-funny emails.

Giving Notice is an eye-opening examination of the causes and dynamics of bias in the workplace, offering a psychological, political, and societal analysis of the actual cost of bias to the bottom line. In it, Kapor Klein lays out five key strategies as part of a comprehensive approach to addressing inclusion within tech companies. The book is filled with sensible approaches for solving the current imbalance and challenges us to rethink unconscious ideas about stereotypes and commonly accepted business practices.