venture capital is one of the engines of technological innovation and economic growth. In principle, the model is simple, with general partners in venture capital firms raising capital from limited partners to invest in promising early stage and growth companies. however, there are multiple complexities that every vc, aspiring vc or entrepreneur must understand to increase the probability of success of the venture capital deal.
Whether you’re a seasoned venture capitalist, new to the industry, or trying to break in, you should always be learning, especially in an ever-changing industry like technology and venture capital. Regularly reading books, thought leadership pieces, blogs, and listening to industry podcasts is a must for any investor.
You are reading: Books about venture capital
If you are in the process of fundraising and getting ready to launch a fund or starting out in the world of angel investing, we highly recommend reading these books. there is no such thing as too much knowledge.
We’ve categorized the books on our list by experience level, starting with aspiring vcs, associates/analysts, and senior vcs. this way, you’ll know where to best spend your valuable time.
if you want to listen to great vc podcasts, we’ve also compiled a list of our favorite vc podcasts.
the best books for the aspiring venture capitalist
These introductory books introduce the reader to the basic principles of venture capital and entrepreneurship. We recommend that you understand these underlying concepts before applying for internships or junior-level positions with venture capital funds, especially if you don’t have a business degree.
sand hill road secrets: venture capital and how to get it
the secrets of sand hill road, by scott kupor, the first employee of the world famous firm andreessen horowitz, is probably one of the most acclaimed vc books ever written. It is named after Sand Hill Road, the location of many well-known venture capital firms in Silicon Valley.
This book is packed with first-hand experience and practical advice for first-time founders. It helps you understand how vcs think and how they make decisions. this is an excellent book for entrepreneurs who want to make their companies (and themselves) more attractive to investors or people interested in learning about the inner workings of venture capital.
The book serves as a “venture capital for dummies” guide for first-time founders or anyone interested in learning more about the industry. The author explains VCS’s thought process behind evaluating a potential investment and determining an initial valuation.
one of the reasons we like this book is because of kupor’s argument that the venture capital landscape has changed in the last two decades. Launching a startup today requires fewer resources and capital than ever before, and accelerators like techstars e and combinator provide valuable guidance and support to entrepreneurs.
This change means that vcs must provide more than just capital if they want to remain competitive and attract the brightest founding teams. instead, they must play a role in the company’s success, often helping it make good decisions and leveraging their networks to connect founders with the right people.
get the secrets of sand hill road on amazon.
venture deals: outsmart your lawyer and venture capitalist
This book by jason mendelson and brad feld, founder of techstars and founding partners of foundry group, a boulder-based vc firm, is an excellent resource for entrepreneurs, venture capitalists, and even attorneys to learn about the processes and vv strategies adds clarity to the discipline of venture capitalism, shows you what it takes to be a successful entrepreneur in the modern world, and discusses strategies for entrepreneurs looking to raise funds from venture capital firms.
In addition, this book breaks down two of the most crucial components of VC investments: term sheets & valuations. The authors explain how to read and interpret the term sheet, decipher the jargon, and help you understand if VCs are giving you a fair deal, making the book valuable to aspiring investors as well as investment-seeking entrepreneurs. of vc.
“a really excellent book, full of information and clear examples that reveal many unknown things about start-ups and the world of vc”, says a reviewer. “If you’re an entrepreneur, an investor, or something in between, you should read the book.”
fred wilson, managing partner of union square ventures, says, “my biggest nightmare is taking advantage of an entrepreneur without even realizing it. “this usually happens because vcs are experts in financing, and most entrepreneurs are not. Brad and Jason are willing to fix that problem with venture deals. this book is long overdue and much needed.”
Overall, this book offers a reasonable and balanced perspective of the industry, how vcs can find suitable investments and how entrepreneurs can find the right type of financing for their projects.
get venture deals on amazon.
zero to one: notes on startups, or how to build the future
Most people in the tech/VC industries are familiar with Peter Thiel, co-founder of PayPal, Palantir and Founders Fund, and an early investor in Facebook. he is one of the most famous (perhaps infamous?) players in the world of investments and technology. His book, Zero to One is a must-read for anyone currently running a business or interested in starting a business.
In this book, Thiel calls on entrepreneurs to create something new. do not try to compete in a market. avoid existing markets altogether. as thiel says, “don’t go from 1 to n”. instead, build something so unique that you don’t have any competitors, effectively going from zero to one. the next bill gates will not build an operating system. instead, it will create something unique that we don’t even know about yet.
“The perfect target market for a startup is a small group of specific people concentrated in one group but served by few or no competitors,” Thiel writes.
vcs would find this book valuable as thiel provides insight and advice on issue/industry selection, a crucial concept they need to understand in order to filter out the most promising investments from the thousands of pitches they hear each year.
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We like this book because it is short and insightful. there is no fluff. And Thiel doesn’t mince words about how much work it takes to build a successful business. skill will always outweigh luck. But unfortunately, there are no free lunches in the startup world.
get zero to one on amazon.
honorable mentions
venture capital is a highly competitive industry; That’s why we strongly recommend that you also read the following books before your interview with a VC fund. The more you can empathize with employers and understand their pain points, the better you will do in your interview.
the lean startup by eric ries: in this seminal book, the author talks about how early-stage startups should use the scientific method to pursue a business model sustainable while mitigating risks. This book introduces the concept of the minimum viable product (MVP) and explains why founders should not rely on the same frameworks that large corporations use. We strongly recommend that you read this book if you are involved with a startup in any capacity.
Venture Capital Raising For The Serious Entrepreneur By Dermot Berkery: This book is a guide that uses three case studies to explain how VCs organize funding for companies, including what they look for in a company, how they value an early stage company, how to structure the term sheet, etc.
best books for venture capital analysts or associates
Congratulations, you landed your dream job and are now either working as a venture capital analyst or even promoted to associate. he is busy hunting for deals, listening to pitches, running errands, etc. but he can’t just sit back and rest on his laurels. continuous learning is key to his success as a vc. These are some books that he should read as he continues to grow in his career.
the hard of the hard things: building a business when there are no easy answers
This book is essential reading for anyone who wants to know what it’s like to run a business, written by ben horowitz, co-founder of andreessen horowitz and one of silicon valley’s most famous investors.
horowitz takes a brutally honest look at start-ups and discusses his time working at netscape and leading loudcloud and opsware. He also talks about some of the most challenging parts of being a startup founder and CEO: hiring and firing friends, building culture, focusing on people, the covert tactics of competitors, and the small but critical decisions founders face. forced to take every day. Finally, he recounts the challenging, and often painful, lessons he learned along the way as an investor, executive, and entrepreneur.
These valuable lessons teach vcs to understand what the founder is going through, which helps them empathize with the founder since they are ultimately one of the vc’s customers.
In a prominent section of the book, Horowitz discusses the difference between a CEO in peacetime and one in wartime. “My greatest management discovery … was that peacetime and wartime require radically different management styles,” he writes. “Interestingly, most management books describe the techniques of CEOs in peacetime, and very few describe them in wartime.”
We like this book because it’s written just for CEOs at the top of the game. however, it applies to anyone who wants to run a business (or is already running one). horowitz is brutally honest yet aspirational.
It’s no wonder this book is part of the “48 Best Books for Building a Business,” a list compiled by Forbes Tips.
get the hard stuff from the hard stuff on amazon.
Mastering The VC Game: A Venture Capital Expert Reveals How To Go From Startup To IPO On Your Terms
mastering the vc game is an excellent overview of startup funding from both sides of the table. Author Jeffrey Bussgang is a seasoned investor who co-founded two startups (one of which went public) before joining Flybridge Capital Partners.
In this book, Bussgang shares his own entrepreneurial story, describing the journeys of several well-known investors and founders, including Twitter’s Jack Dorsey and LinkedIn’s Reid Hoffman. Plus, it provides a lot of insight into how entrepreneurs should shop around for investments, including finding the right types of venture capital and angel investors and evaluating deals.
the author highlights a great point that every investor and founder must understand: both parties must have similar goals. if the goals are not aligned, there will never be a healthy relationship. this is so critical to success that finding the right investor is often more important than the details of the deal.
the late tony hsieh said it best: “finding the right vc for you and your company can be a challenging task. Bussgang’s account of his experience provides a unique perspective into the world of vc and is a compelling read for entrepreneurs.”
get vc game mastery on amazon.
The Business of Venture Capital: Insights from Leading Professionals on the Art of Fundraising, Deal Structuring, Value Creation, and Exit Strategies
With a foreword by brad feld, this book was written by mahendra ramsinghani, a serial investor with stakes in over fifty pre-seed and early-stage companies, founder of secure octane (a cybersecurity seed fund), and the former Director of Venture Capital Initiatives for the Michigan Economic Development Corporation. some readers refer to this book as “the definitive guide to demystifying the business of venture capital.”
ramsinghani combines expert knowledge and mountains of experience in the venture capital business to create a comprehensive treatise on the industry. It covers the full gamut of topics: raising funds, structuring investments, conducting due diligence, determining exit strategies, executing the deal, and more. There are also 25 interviews with leading venture capitalists adding their own insights and opinions, and a companion website with some additional resources, such as various due diligence checklists for evaluating potential lps and investments.
We like this book because it is explicitly written for you, not entrepreneurs raising money. so unlike the other books on this list, it’s very one-sided. the format is similar to a textbook, without overly complex language or assumptions.
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get the venture capital deal on amazon.
7 Powers: Foundations of Business Strategy
all vc analysts and associates should understand basic trading strategy and how to apply it. a solid strategy can be the difference between a business destined for failure and a significant organization that creates value.
In 7 Powers, author Hamilton Helmer, a noted consultant, investor, and teacher, presents a strategic framework to help companies choose what to focus on. Helmer outlines seven powers that deliver a profit designed to increase cash flow, help the business grow, and a barrier or moat that prevents competitors from taking the profit.
Using well-known companies like Netflix, Facebook, Salesforce, and Tiffany’s, Helmer illustrates his points concisely and directly. By following these frameworks, you can evaluate potential investments and better understand a startup’s strategy or lack thereof.
Getting 7 Powers: Business Strategy Basics at Amazon.
honorable mentions
William Draper’s Startup Game: According to the author, VCs are more than just investors; they are entrepreneurship coaches, mentors and allies. In this book, Draper recounts experiences working with top Silicon Valley companies and explains how the relationship between entrepreneurs and VCs is crucial to a company’s success.
Competition Demystified: A Radically Simplified Approach to Business Strategy by Bruce Greenwald: The authors argue that strategy is a set of plans that must focus on competitors. strategic thinking should only focus on looking outwards and creating, protecting and exploiting competitive advantages, a concept similar to the 7-power “moat” or “barrier”. In essence, the authors explain why organizations should focus on which markets to enter or exit and how to deal with competitors, suppliers, etc. This book offers a simple framework for evaluating a business that you can take advantage of.
books for senior venture capitalists
even if you are an experienced investor, you can still learn a lot more. so if you haven’t already, we recommend you take a look at these books.
technological revolutions and financial capital: the dynamics of the bubbles and the golden ages
Technological Revolutions and Financial Capital is an academic book by Anglo-Venezuelan Carlota Pérez, an academic specializing in the collision of technology and economic development. the book deconstructs the centuries-old relationship between technology and financial bubbles. Her model shows repeated “leaps” of technological advance over 300 years and how these events affected the economy (as well as the roles that financial, state, market and civil actors played).
why is all this relevant? because his theories will help you understand (and adapt to) a rapidly changing economy. If a technological boom precedes economic change, how can you, as a venture capitalist, position yourself to benefit? this book shows you how to identify a technological revolution and tackle the next economic problems.
be careful: this is not a book for beginners. Perez doesn’t beat around the bush. she expects you to understand complex concepts of finance, investing, and technology.
get technological revolutions and financial capital on amazon.
eboys: the first insider account of venture capitalists at work
Randall Stross, a business historian and author who has been studying Silicon Valley for decades, takes readers behind the scenes and inside the minds of the six men who founded Benchmark, one of the most storied VC firms. from the valley. With investments in eBay, Uber, Twitter, and many other tech giants, Benchmark is without a doubt a titan in the world of venture capital.
Although this book was published more than 20 years ago, stross’s unmatched access to benchmark partners gave him a front row seat to the conversations, meetings, and decision-making processes of the brightest minds in the industry.
We like this book because it provides a first-person account of the partners in the benchmark and how they became intimately involved in each of their portfolio companies advising them on strategy, execution, and recruiting. Regardless of their success, the partners had their feet firmly planted on the ground and never strayed from their original goal of finding and nurturing new business.
get eboys: the first internal account of venture capitalists working at amazon.
rioters: coming of age of silicon valley
Leslie Berlin’s Troublemakers is a deeply researched narrative that tells the story of Silicon Valley by focusing on seven pioneers who brought us groundbreaking technologies like the Internet and microprocessors. During the 1970s and 1980s, the valley transformed to become the heart of America’s economic engine by bringing together a cast of men and women who sought innovation and ended up changing the world.
Five industries, personal computing, biotechnology, modern venture capital, video games, and semiconductor logic, grew out of Silicon Valley in just a few years. In this book, Berlin explains how the perfect combination of factors came together at the right time to foster this ecosystem that has spawned an unprecedented level of innovation.
steve jobs stated that “you can’t really understand what’s going on now unless you understand what came before.” As the tech industry is facing various unprecedented issues related to sexism, privacy, public trust, etc, vcs should take the time to understand how the early pioneers of silicon valley overcame the challenges they faced in their time. .
Eric Schmidt, CEO of Alphabet and former CEO of Google, calls this book “kaleidoscopic, ambitious and brilliant, drawing on a dazzling cast of characters to chart the rise of the five industries that have come to define technology today and, collectively, to remake the world.”
In short, Troublemakers is a must-read for anyone who wants to understand how and why the technological revolution occurred in the San Francisco Bay Area.
get troublemakers: silicon valley coming of age on amazon.
don’t stop there
As you can see, there is a lot to learn from the best in the industry. While we think these are the best books on venture capitalism, our list is certainly not exhaustive. you should always be on the hunt for more material to improve yourself and your work.
If you’re an investment banker or interested in learning more about this field, read our article “The Best Investment Banking Books Every Banker Should Read.”
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