1946
- Georges Doriot, professor of industrial administration at
Harvard Business School, incorporated American Research and
Development Corporation (ARDC) in Boston in belief that research
and development, coupled with professional management, could
generate economic growth, capital appreciation; first
independent venture capital organization (closed-end New York
Stock Exchange-listed investment fund); only non-family venture
capital firm (raised capital from from institutional investors,
the public); February 10, 1947 - raised $3,581,750
from investment trusts, life insurance firms, university
endowments; first five years - 66% of investments
in chemicals, industrial equipment; 1957 - $70,000
investment in Digital Equipment Corporation (gain of $355
million in 1971) ignited Route 128 minicomputer boom, resulted
in formation of world’s largest cluster of minicomputer firms;
1973 - acquired by Textron; decline stemmed from
organizational design flaws vs. SBICs, Venture Capital Limited
Partnerships); no longer significant to development of venture
capital industry.
1961
- Arthur Rock (former investment banker at Hayden, Stone & Co.
(arranged financing for Fairchild Semiconductor in 1957), Thomas
J. Davis, Jr. (former VP of Kern County Land Company responsible
for investing land trust's royalties) formed Davis & Rock in San
Francisco, CA as partnership (not SBIC or publicly-held); raised
$5 million (capital gains split 80/20 between limited
partners/general partners); 1968 - partnership
dissolved (generated $90 million in capital gains, 54% compound
growth rate; Teledyne, Scientific Data Systems biggest hits);
first venture capitalist on the West Coast; July 16, 1968
- launched Intel with Bob Noyce (group vice president of
Fairchild Semiconductor), Gordon Moore (head of Fairchild
Semiconductor's R&D division).
1972
- Eugene Kleiner (scientist - he and seven other scientists from
the East Coast recruited by Nobel Prize winner, William
Shockley, in 1956 to help build computer transistors; co-founder
of Fairchild Semiconductor), Tom Perkins (one of leaders of
Hewlett-Packard's early computer hardware division), Frank J.
Caufield, Brook Byers established Kleiner Perkins Caufield &
Byers at 3000 Sand Hill Road in Menlo Park; leader in providing
venture, relationship capital SM services; has backed
entrepreneurs in over 500 ventures; more than 150 of firm's
portfolio companies have gone public; many other ventures have
merged or been acquired.
2006
- Cambridge University comparison study found research
spending per start-up was $118 million in US vs. $35 million in
UK.
2007 - Venture
capitalists invested $29.4 billion into U. S.-based companies,
most since 2001: biotech/medical device companies ($9.4 billion,
up from $7.6 billion in 2006); financial/clean technology
companies ($2.2 billion vs. 1.5 billion in 2006).
June 27, 2008 -
NO VC-backed IPOs in 2nd Q 2008 (first time since 1978)
(http://graphics8.nytimes.com/images/2008/06/28/business/0628-biz-VENTURE.jpg)
(American Research and Development
Corporation), Ed. Udayan Gupta (2004).
The First Venture Capitalist: Georges Doriot on Leadership,
Capital, & Business Organization. (Calgary, AB:
Gondolier, 240 p.). Doriot, Georges; venture capital.
(American Research and Development
Corporation), Spencer E. Ante (2008).
Creative Capital: Georges Doriot and the Birth of Venture
Capital. (Boston, MA: Harvard Business Press, 299 p.).
Doriot, Georges F. (Georges Frederic), 1899-1987; Capitalists
and financiers -- Biography; Venture capital -- History. Enigmatic,
quirky man who created venture capital industry; pivotal events
in Doriot's life, business philosophy, stewardship in startups.
(3i), Richard Coopey & Donald Clarke (1995).
3i: Fifty Years Investing in Industry. (New York, NY:
Oxford University Press, 459 p.). 3i (Firm)--History; Capital
investments--Great Britain--History--20th century;
Corporations--Great Britain--Finance--History--20th century;
Great Britain--Economic policy--1945-1964; Great
Britain--Economic policy--1964-1979; Great Britain--Economic
policy--1979-1997.
(Angel Investors LP), Gary Rivlin (2001).
The Godfather of Silicon Valley: Ron Conway and the Fall of the
Dot-Coms. (New York, NY: At Random.com, 103 p.). Conway,
Ron; Electronic commerce--United States; Capitalists and
financiers--United States.
(Benchmark Capital), Randall E. Stross (2000).
Eboys: The True Story of Six Tall Men Who Backed Ebay, Webvan
and Other Billion-Dollar Start-Ups. (New York, NY:
Crown, 325 p.). Professor of Business (San Jose State
University). Benchmark Capital (Firm)--History; Investment
bankers--United States--Biography; Electronic commerce--United
States--Finance--Case studies; Venture capital--United
States--Case studies; New business
enterprises--California--Santa Clara County--Finance--Case
studies; Entrepreneurship--California--Santa Clara County--Case
studies.
(Flybridge Capital), Jeffrey Bussgang (2010).
Mastering the VC Game: A Venture Capital Insider Reveals How to
Get from Start-up to IPO on Your Terms. (New York,
NY: Portfolio, 246 p.). General Partner at Flybridge Capital
Partners. Venture capital; New business enterprises -- Finance;
Going public (Securities). Helped build two successful start-ups
(one went public, other was acquired); helping entrepreneurs to
bring dreams to fruition; insights, stories, practical advice
(Twitter's Jack Dorsey, LinkedIn's Reid Hoffman); how to get
noticed, perfect a pitch, negotiate a partnership that works for
everyone.
(Institutional
Venture Partners), Ruthann Quindlen (2000).
Confessions of a Venture Capitalist: Inside the High-Stakes
World of Start-up Financing. (New York, NY: Warner
Books, 218 p.). Venture capital--United States.
(Kleiner Perkins), Tom Perkins (2007).
Valley Boy: The Education of Tom Perkins. (New York, NY:
Gotham, 304 p.). Partner, Kleiner, Perkins Caulfield & Byers.
Perkins, Thomas J.; Hewlett-Packard Company--Management;
Executives--United States--Biography; Novelists, American--20th
century--Biography. Adventure and
high finance: deals, venture capital, entrepreneurs, ocean
racing, vintage cars, women.
Hewlett-Packard (administrative
head of research laboratories, first general manager of computer
businesses) to laser technology, Chairman of Genentech for 14
years, founded Silicon Valley venture-capitalist firm Kleiner
Perkins Caufield & Byers; 2006 - resigned from Hewlett-Packard’s
board.
(Sutter Hill Ventures), William H. Draper,
III; foreword by Eric Schmidt (2011).
The Startup Game: Inside the Partnership Between Venture
Capitalists and Entrepreneurs. (New York, NY:
Palgrave Macmillan 272 p.). Founder of Sutter Hill Ventures,
General Partner of Draper Richards L.P., Draper Investment
Company, and Draper International. Draper, William H., 1928-;
Capitalists and financiers --United States --Biography; Venture
capital; Entrepreneurship; New business enterprises --Finance.
How relationship between venture capitalists, entrepreneurs is
critical to future of business: how to evaluate innovative
ideas, entrepreneurs behind those ideas (Yahoo, Baidu, Tesla
Motors, Activision, Measurex, more); value of political
leadership in creating opportunity (how Deng Xiaoping brought
China roaring into modern world.
(TA Associates), Peter A. Brooke; Daniel
Penrice, contrib. (2009).
A Vision for Venture Capital: Realizing the Promise
of Global Venture Capital and Private Equity.
(Boston, MA: Winthrop Group distributed by University Press
of New England, 320 p.). Venture capital.
Career on
frontiers of international finance during past half-century.
Peter Brooke has been called "the Johnny Appleseed of
venture capital" for his role in the industry's spectacular
growth-- from a small base in the Northeastern United States
in the 1960s, to today's highly visible role in economies
all over world; key to Brooke's success- - vision for
industry as essential element of economic growth and
development; why industry exists, how it can fulfill its
potential in 21st century.
(Wolff New Media), Michael Wolff (1998).
Burn Rate: How I Survived the Gold Rush Years on the Internet.
(New York, NY: Simon & Schuster, 268 p.). Creator of NetGuide.
Internet consultants; Success in business; Corporate profits;
Internet industry.
William D. Bygrave and Jeffry A. Timmons
(1992).
Venture Capital at the Crossroads. (Boston, MA: Harvard
Business School Press, 356 p.). Venture Capital.
Karl Capita (2005).
Adventure Capital: A Cautionary Tale of the Venture Capital
Circus and the Clowns That Run It. (Omaha, NE: iUniverse,
150 p.). Venture capital; Entrepreneurship--California--Santa
Clara County--Case studies.
Patrick Coveney, Karl Moore (1998).
Business Angels: Securing Start up Finance. (New York,
NY: Wiley, 233 p.). Angels (Investors)--Great Britain; New
business enterprises--Great Britain--Finance; Venture
capital--Great Britain.
Thomas M. Doerflinger, Jack L. Rivkin (1987).
Risk and Reward: Venture Capital and the Making of America's
Great Industries. (New York, NY: Random House, 320 p.).
Venture capital--United States--History; Capitalists and
financiers--United States--History; Industries--United
States--History.
Paul A. Gompers and Josh Lerner (2001).
The Money of Invention: How Venture Capital Creates New Wealth.
(Boston, MA: Harvard Business School Press, 282 p.). Venture
capital--United States; New business enterprises--United
States--Finance.
Ed. Udayan Gupta (2000).
Done Deals: Venture Capitalists Tell Their Stories.
(Boston, MA: Harvard Business School Press. Venture
capital--Case studies; Businessmen--Case studies.
Steve Harmon; with a foreword by John Doerr
(1999).
Zero Gravity: Riding Venture Capital from High-Tech Start-up to
Breakout IPO. (Princeton, NJ: Bloomberg Press, 267 p.).
Venture capital; Going public (Securities); New business
enterprises--Finance; Internet industry--Finance.
George Kozmetsky, Michael D. Gill, Jr.,
Raymond W. Smilor (1985).
Financing and Managing Fast-Growth Companies: The Venture
Capital Process. (Lexington, MA: Lexington Books, 144
p.). Venture capital--United States; Venture capital.
Andrew Metrick (9/2006).
Venture Capital and the Finance of Innovation. (Hoboken,
NJ: Wiley, 592 p.). Associate Professor of Finance at the
Wharton School (University of Pennsylvania). Venture capital;
Technological innovations--Finance. Essentials of finance can make
difference between investing with discipline or with blind hope.
Robert C. Perez (1986).
Inside Venture Capital : Past, Present, and Future.
(New York, NY: Praeger, 189 p.). Venture Capital-U.S.
Scott A. Shane (2009).
Fool’s Gold?: The Truth Behind Angel Investing in America.
(New York, NY: Oxford University Press, 276 p.). North Coast
Angel Fund, Professor of Entrepreneurship (Case Western Reserve
University). Venture capital --United States; Small business
--United States --Finance; Investments --United States.
Group
portrait of lionized angel investors; fewer, contribute less,
involve themselves in fewer start-ups, typically still have day jobs, make investments of
$10,000 or less, take little or no role in assisting
entrepreneurs to build companies; recommendations to entrepreneurs, angels for most
productive use of angel investing; angel groups.
Karen Southwick (2001).
The Kingmakers: Venture Capital and the Money Behind the Net.
(New York, NY: Wiley. Venture capital; New business
enterprises--Great Britain--Finance; Internet industry--Finance.
John W. Wilson (1985).
The New Venturers: Inside the High-Stakes World of Venture
Capital. (Reading, MA: Addison-Wesley, 237 p.). Venture
capital--United States.
Jeffrey Zygmont (2001).
The VC Way: Investment Secrets from the Wizards of Venture
Capital. (Cambridge, MA: Perseus, 224 p.). Venture
capital; Capital investments; Investments.
_________________________________________________________________________________
LINKS
Startup Search
http://www.startupsearch.org/
Directory tracking "new web technology companies at the
beginning stages of their growth." It collects "facts and
figures about new web products, startup companies, key startup
employees, and the funding dollars powering their growth."
Profiles include background and rankings (explained in "Startup
Search Score" in the About section). Searchable, or browse
companies, products, people, investors, or partners. From a Web
search and syndication consultant.
TheFunded
http://www.thefunded.com/
Online community of entrepreneurs to research, rate, and review
funding sources worldwide. In addition, TheFunded.com allows
entrepreneurs to view and share term sheets, to assist one other
finding good investors, and to discuss the many facets of
operating a business.
Venture Economics
http://www.ventureeconomics.com
Source for global private equity intelligence. The site’s daily
news and statistics offer a snapshot of the US, European, and
Asian private equity markets. In addition, in-depth research and
analysis is right at your fingertips through the entire suite of
periodical and database products available through
VentureEconomics.com
