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Zero Gravity: Riding Venture Capital from High-Tech Start-up to Breakout IPO by Steve Harmon
Book Summary InformationAuthor: Steve Harmon Foreword: John Doerr Edition: Hardcover Audio: English (Unknown); English (Original Language); English (Published) Published: 1999-10 ISBN: 1576600327 Number of pages: 256 Publisher: Bloomberg Press Accessories:
Book Reviews of Zero Gravity: Riding Venture Capital from High-Tech Start-up to Breakout IPOBook Review: good basic data and insightful pieces, but buy version 2.0 Summary: 5 Stars
HAVING READ BOTH EDITIONS of this book (Zero Gravity and Zero Gravity 2.0 published in June 2001) cover to cover it is refreshing to see the practical and candid advice in version 2.0 in the new environment where venture capitalists are slower to commit investments. More than ever, entrepreneurs need insights into venture capital SINCE most venture capitalists are extremely careful about new investments.Walking into a venture meeting without any kind of idea of what to expect is a sure-fire way of not getting funded, if you get a meeting at all. This book arms new entrepreneurs with what to expect and how to deal with some of it. Harmon revised the book in version 2.0 since the environment changed for financing startups. eBay, Yahoo and others built themselves on the approaches in Harmon's first book. The second generation of tech startups will benefit from the new tougher approach described in Zero Gravity 2.0. Harmon has kept up with the changes, alerting entrepreneurs to the new landscape. The book's core foundation is the same in any era. The data, interviews with successful entrepreneurs and methodological approach to approaching venture capital is more important now than ever. The book IS NOT an encyclopedia unabridged HOW-TO guide. Harmon cautions entrepreneurs in Zero Gravity 2.0 with some sound advice on building a company relying on profits rather than an endless supply of venture capital. Zero Gravity 2.0 IS a great primer for the necessary steps in getting funded. It is PART of getting ready to start a company.
Summary of Zero Gravity: Riding Venture Capital from High-Tech Start-up to Breakout IPOThe Internet...it's a wild ride. High-flying Internet companies seem to operate their own set of rules -- outside the natural laws of gravity that apply to most businesses. It's an environment in which perception is more important than profits, and "mind share" is greater than market share. This is Zero Gravity, and it's what all Internet start-ups aspire to. But how do garage entrepreneurs and Internet junkies make the transition from that first caffeine-induced idea to blockbuster IPO and instant-millionaire status? The answer is venture capital -- which has funded nearly every successful start-up. This book by noted Internet stock analyst Steve Harmon provides an insider's edge and a savvy look inside the topsy-turvy culture of venture capital and Silicon Valley start-ups. It delivers valuable guidelines from top venture capitalists, such as John Doerr of Kleiner Perkins, Ann Winblad of Hummer Winblad, and Esther Dyson of EDVenture Holdings -- the leaders who make the rules in cyberspace. Zero Gravity also contains advice and lively anecdotes on business growth and Internet company etiquette from luminaries such as Jerry Yang of Yahoo! and Jeffrey Bezos of AMAZON.com. It provides the contacts you need, in tandem with the know-how it takes to operate successfully in the frenetic, high-stakes world of Internet business. This is "the little black book" for anyone interested in what's really going on in this news-making industry. In the world of venture capital, investors look for deals that will return 10 to 20 times their original investment, although sometimes they do much, much better. Venture capitalists are looking for many things: not only a company that can dominate a business category, but one that will eventually be worth at least a half-billion dollars. And even if an entrepreneur can present a business plan that looks as if it can deliver a company of that size and prominence, the VC has to have confidence in that businessperson before time and money get invested in the startup. That's a lot to expect from a new business, but there's more. According to Steve Harmon, an entrepreneur has few chances to get a VC's attention, so first impressions might mean the difference between millions invested and complete rejection. Harmon is an Internet-investment analyst who knows the VC world well, and Zero Gravity is his guide for people with new ideas: which VCs to approach (different firms specialize in different types of business startups, and each partner within those firms may have his or her own areas of specialization), how to approach them and get them excited about your idea, and what mistakes to avoid (hint: If you've already granted a chunk of the company to your doctor and your accountant in exchange for dribs and drabs of prestartup money, VC interest will be minimal). This is about as complete a manual as an entry-level entrepreneur could hope for. Harmon not only covers the basics of searching for capital, he offers inspirational stories of the true VC successes (Amazon.com, Netscape, @Home) and includes interviews with the VCs themselves, letting them say in their own words how they pick the winners, and how you can become one of them. --Lou Schuler
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