Preface of Textbook
About the Textbook
About the Authors
Book Website at McGraw-Hill
DVD Contents
Stanford 1e Book Website
McGraw-Hill 1e Book Website
Book Contents
Table of Contents
Venture Opportunity, Concept and Strategy
Venture Formation and Planning
Functional Planning of the Venture
Financing and Building the Venture
  Business Plans (App. A)
  Case Studies (App. B)
Online Sources (App. C)
Sample Syllabus
Course Overview
Calendar of Sessions
Entrepreneurial Perspective
Idea or Opportunity
Gathering Resources
Managing Ventures
Entrepreneurship and You
Additional Resources
Schools Using This Textbook
Authors Blog

A successful venture must have essential building blocks in place. This includes a solid business plan, human resources and talent, and venture finance. This discussion will cover the principles behind each of these building blocks, from recruiting to money.


Relevant Texbook Chapters


Discussion Questions

  1. What are the primary reasons and benefits to create a business plan? What are the most important sections? Why? Choose and evaluate one of the two sample business plans in Appendix A of Technology Ventures, depending on your personal preference for either information technology or life science technology. Be prepared to share your opinion on each plan’s strengths and weaknesses.
  2. In your opinion, what is the most important risk to reduce in a startup? Technology, market, team, or financial. Why?
  3. In start-ups, what are the key actions that a founder or CEO must take regarding human resources?
  4. How do high tech entrepreneurs finance their ventures? What do venture capitalists do? What is the structure of a typical venture capital firm? How does a typical firm operate?
Slidedeck: ABC's of Venture Finance and Teams
Professor Tom Byers' slides on venture finance and teams.
Teaching Note: Valuation of High Technology Ventures
A short teaching note on the art of valuing companies. The main purpose of valuation analysis is to identify and understand critical assumptions affecting value, develop realistic ranges of value based on these assumptions, and understand the way in which the value of the business is shared to satisfy all parties involved.
Related Case Study: Visio Corporation, A Visual Adventure
The goal of Jeremy Jaech and Ted Johnson was to make a Windows-based drawing program that allowed seamless integration of business and technical graphics with popular business-communications programs, such as spreadsheets and word processors. Now they need a new round of funding.
Heidi Roizen: Bootstrapping - Still a great way to raise money
Roizen talks about the importance of bootstrapping, and maintaining control of the company in the early stages. Not only do entrepreneurs have to work for a living but they also have to make the money raised last for a longer time. When capital became easily available people stopped making the money the old fashion way, by working. If you create profit, shareholder value will definately follow. If you make profits you don't need other people to invest in your company. This is a great advantage.
Heidi Roizen: Raising venture capital today
Have venture capital, but jave it at the right time and use it judiciously. Roizen talks about the Barbell syndrom - you can raise the first and the last round but not the rounds in between. It is very difficult to raise the middel rounds and therefore treat the money like the gold that it is.
Heidi Roizen: Common mistake - Treating VC money as your own
Roizen thinks that one of the biggest mistakes that companies made in the hayday is considering that VC money is their own. She talks about how she dealt with the money she raised. Entrepreneurs forget tat they have to pay back. Terms are more important than valuation. If there is any value that gets created as a result of the entrepreneurs sweat and VC money, then the VC's get the money back first.
Jeff Hawkins: Company Culture
Hawkins believes that you have to be conscious and methodological about your company culture. The culture starts at the top and permeates to the bottom. The culture at palm is a product culture - He quotes: We are there because we were trying to do good products. You should also communicate the culture to new hires, employees and customers alike. High integrity is also an important component of the Palm culture. This integrity is not just internal, but integrity with vendors, suppliers and customers. A lot of companies keep secrets, but the transparency has been very good for Palm. A good, solid culture can help a company go through the hard times.
Kleiner Perkins Caufield and Byers
One of the cornerstone venture capital firms in Silicon Valley, KPCB has invested in and grown idozens of market-defining household names, including Amazon, Google, Sun, Genetech, Compaq and America Online. It also fosters a unique network (Keiretsu) between all its portfolio companies to leverage symbiotic potential.
Sequoia Capital
One of the cornerstone venture capital firms in Silicon Valley, Sequoia invests in early stage companies in the west and also nationwide and in Israel in later stage companies. Portfolio companies include Yahoo!, Google, PayPal, Cisco and Electronic Arts.
PriceWaterhouseCooper MoneyTree
The MoneyTree Survey is a quarterly study of venture capital investment activity in the United States. It is a definitive source of information on emerging companies that receive financing and the VC firms that provided it.
Copyright 2004-2007 Stanford University. All Rights Reserved.