PDF EPUB VC An American History Author Tom Nicholas – dugisits.co.za


  • Hardcover
  • 400
  • VC An American History
  • Tom Nicholas
  • English
  • 09 June 2020
  • 9780674988002

Tom Nicholas æ 8 free download

VC An American History summary ò eBook, ePUB or Kindle PDF A major exploration of venture financing from its origins in the whaling industry to Silicon Valley that shows how venture capital created an epicenter for the development of high tech innovation VC tells the riveting story of how the industry arose from the United States' long running orientation toward entrepreneurship Venture capital has been driv. As expected this book tells the legendary stories of how VC firms like Greylock Partners Kleiner Perkins and Seuoia launched companies such as Intel Genentech and Google But Nicholas also goes back to the early 1800s beginning with the financing of whale ships Whaling agents operated similarly to today s VC firms And like high tech investing a few big hits paid for the unprofitable venturesFrom this history Nicholas describes why VC developed as it did in America If you are only interested in the stories you may find the theoretical sections slow going But I enjoyed the insights into the nature of early stage investing the history of why it thrived in America and where it might go in the futureA FEW INTERESTING POINTS FROM THIS BOOK By the middle of the 1800s nearly 75 percent of the 900 whaling ships in the world were American One reason for this was that American whaling agents had figured out a way to finance risky whale oil ventures Just as VC firms intermediate between entrepreneurs and limited partners with capital to invest whaling agents intermediated between captains and crew with wealthy investors The payoff of whaling was very similar to venture capital today Every whaling voyage had significant exposure to downside risk literally sinking Most ships would only earn a small to modest profit but a few ships would return full of barrels of oil that would compensate the investor for the other losses Nicholas overlays a histogram of the distribution of returns for the whaling industry during the 1800s versus the VC industry from 1981 to 2006 They are incredibly similar Nicholas recounts how men willing to risk their capital for higher returns used VC like financing to build America s first factories A particularly good story describes the Brown family of Rhode Island who financed Samual Slater a 21 year old immigrant from England who had a working knowledge of the technology to use water power to spin cotton into thread He was as Nicholas recognizes what we today call a technical co founder As an interesting addition Nicholas includes in the book the agreement between Slater and the Browns In it we see a thoughtful balance between the VC s maintaining control while giving Slater the entrepreneur the right incentives to maximize profits During the 1900s several wealthy families established investment arms to make VC style investments These included the families of Andrew Mellon Henry Phipps Laurance Rockefeller and Jock Whitney Laurance Rockefeller s chief goal was to fund innovation in scientific areas he had an interest in such as aviation he would fund Eastern Airlines and McDonnell Aircraft Interestingly the pain associated with early stage investing would nudge all of these families towards later stage private euity investments The need for military innovation during World War II followed by the GI bill spurred America s scientific and technological development But the capital available for start ups from individuals and family offices was far less than needed Recognizing this the New England Council in 1946 created the American Research and Development Corporation ARD to seek capital from the large asset owners investment trusts and insurance companies The returns for the first ten years were disappointing Then in 1957 ARD invested 70000 600000 today to fund the start up Digital Euipment Company DEC By 1971 that investment was worth 355 million and DEC was Massachusetts largest employer Nicholas includes a colorful chapter that recounts how Silicon Valley became Silicon Valley and the epicenter of venture capital investing He tells the stories of Arthur Rock Davis Rock Tom Perkins Kleiner Perkins and Don Valentine Seuoia Capital Through the founding of Intel Apple Genentech and other companies we see the principles that made these funds successful Rock emphasized the uality of management Perkins looked for good technology And Valentine stressed the need for big market demand I liked how Nicholas refers to the investing principles these VC firms wrote down at their founding Venture capital took off with the rise of the personal computer during the 1980s And by the year 2000 there were than ten times VC firms than there had been in the mid 1980s Investors couldn t help but notice how Netscape rose 100% from its IPO price on the first day of trading But later came Petscom which dropped from over a 300 million valuation to 0 in less than a year When the bubble burst VC firms received blame for financing and bringing to market bad companies But the asset class was far from done This is a history book so Nicholas doesn t do much analysis of the last ten years He knows we need distance to form an objective view of recent times A good uote on why VC investing is hard Chuck Newhall said about an investment in a West Virginia euipment maker I lost 25 percent of my life for five years and I wasted months in exhausting useless travel In the end Nicholas reminds us that early VC leaders like Georges Doriot Jock Whitney and Laurance Rockefeller had larger goals than making money they wanted to build new companies that would grow America s economy and advance technology and science In the long tail their plan paid off

free download Æ eBook, ePUB or Kindle PDF æ Tom NicholasVC An American History

VC An American History summary ò eBook, ePUB or Kindle PDF En from the start by the pull of outsized returns through a skewed distribution of payoffs a faith in low probability but substantial financial rewards that rarely materialize Whether the gamble is a whaling voyage setting sail from New Bedford or the newest startup in Silicon Valley VC is not just a model of finance that has proven difficult to repl. Dry at times but a worthwhile read on history of venture capital in the United States If you re in a hurry maybe skip chapters 2 3 and 5 Chapters 1 6 and 8 alone are worth buying the book they cover the whaling industry styles of VC investment in late 20th century and the internet boombust respectively Nicholas did an incredible job of diving into various aspects of the principle agent problem in LP structures throughout All important risks for anyone considering VC investments

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VC An American History summary ò eBook, ePUB or Kindle PDF Icate in other countries It is a state of mind exemplified by an appetite for risk taking a bold spirit of adventure and an unbridled uest for improbable wealth through investment in innovationTom Nicholas's history of the venture capital industry offers readers a ride on the roller coaster of setbacks and success in America's pursuit of financial ga. An interesting concept for a book The history of the VC industry That said it wasn t as meaty as I had hoped Part of the reason for this is that there simply hasn t been that much innovation in the industry There is maybe just a few milestones over the last hundred years