Venture Capital has single-handedly transformed the economic growth of the world. Many technological innovations are backed by venture capital firms, raising capital and investing in promising startups. Venture capital (VC) is like financing startups or businesses that investors believe have potential huge growth in the long run. This is like a form of private equity.
Best Venture Capital Books!
The venture capital industry is dynamic, and if you are an aspiring venture capitalist, you must dive into researching this subject. Since it’s a fast-paced and fast-changing landscape, it’s best to read as many books to learn about venture capital, so you are prepared for the upcoming changes. There are so many things to learn about this type of financing, like the waterfall model, due diligence checklist, fellowship programs, how to raise funds, and much more.
You can also check out these best books for entrepreneurs to read. In this article, you will find the best books to read and how to enter the venture capital industry. It doesn’t matter if you are an aspiring venture capitalist, a startup owner looking for startup capital, or just someone looking to learn about Venture Capital; this list will be like your best friend on this journey.
1. Zero to One: Notes on Startups, or How to Build the Future by Peter Thiel
The best way to learn about a specific topic is by seeking guidance from an expert. And Peter Thiel is the man if you want to know about Venture Capital. Peter Thiel is a Venture Capitalist and a billionaire entrepreneur. He co-founded Paypal, Palantir Technologies, Founder’s fund, etc. He was also one of the first outside investors of Facebook. His immense experience is a gold mine for anyone learning about Venture Capital.
In his book Zero to One, he shares ideas and suggestions for technology startups, which is incredibly valuable for newly minted business owners. The concept of Zero to One is all about scaling from nothing to something. When you are working on something or doing something that other people already know how to do, you’re adding value to something familiar. This is how you take something from one to n.
But when you are working on a new unique idea, you go from zero to one. A lot of people have business ideas but rarely do they end up materializing them into a startup. And Peter Thiel presses on the fact that we are in a phase of technical stagnation. There is a lot of scope for innovation. Zero to One by Peter Thiel is undoubtedly one of the best books to read and learn about Venture Capital. It’s beginner-friendly as well, which makes it ideal for everyone. You can get the book here! 📖
2. Secrets of Sand Hill Road: Venture Capital and How To Get it by Scott Kupor
If you want to transform your startup into the next big name or scale up your existing business, you need this book in your life. Secrets of Sand Hill road is your guide to understanding the mindset of Venture Capitalists. The author will take you through how Venture Capitalists decide where to invest and how much to invest. You will also learn how to make the most out of your relationships with Venture Capitalists and score the best deals! The author focuses on how you must start networking with acquirers even though you have no plans to sell at the moment.
You will learn many vital lessons from this book. Scott Kupor also shares one of the biggest secrets of successful Venture Capitalists. Successful Venture Capitalists pick only one startup in a particular business category at a time and invest in it. You will also learn that as an entrepreneur, you must know the art of storytelling to raise capital for your startup. So, overall this book is suitable for everyone, including an aspiring venture capitalist and also a startup looking for seed money. You can get the book here! 📖
3. Venture Capital for Dummies by Nicole Gravagna and Peter K. Adams
One of the biggest hurdles for any entrepreneur is raising startup capital. You may have the most fantastic product in your pipeline, but if you don’t have enough funds, your dream of making it big will become hard to achieve. Venture Capital for Dummies is your step-by-step guide to understanding the process of finding and raising capital for your startup. It’s also beginner friendly, so you don’t have to worry about it being too difficult to understand. You can get the book here! 📖
4. Angel Investing: The Gust Guide To Making Money and Having Fun Investing in Startups by David S. Rose
David S. Rose is a serial entrepreneur and one of the world’s most active angel investors. In his book Angel Investing, David talks about how making money has changed in today’s world. Making money is not about sitting in your office or home studying stock market listings. Instead, it’s all about finding exciting startups, becoming their part owner, and having fun scaling them up. It’s incredibly financially rewarding. If you want to become a successful angel investor, then this book is a must-read.
The author will walk you through the complete process of building your reputation in the market as an investor, analyzing the market, and negotiating and cracking fair deals to add them to your portfolio. The best part about this book is that it educates you about the fundamental strategies and puts light on the practical tools to make the most out of the rapidly growing asset class market. So, to get started as an angel investor, you must add this book to your reading list. You can get the book here! 📖
5. The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses by Eric Ries
The Lean Startup is a unique approach focusing on continuously finding an innovative line of action to revolutionize the global business landscape. Several new startups join different business categories every year, but most don’t make it beyond a certain level. New aspiring entrepreneurs don’t realize that starting and establishing a new business is subject to a lot of market risk. Entrepreneurs need to learn how to combine increased capital efficiency and creativity. And Eric Ries explains the exact approach in his book The Lean Startup. You can get the book here! 📖
6. The Hard Thing about Hard Thing: Building a Business When There are No Easy Answers by Ben Horowitz
Wouldn’t it be great if an expert could offer you practical advice on developing, managing, and supervising different aspects of a business? Ben Horowitz is a big name in Silicon Valley. He is one of the most well-known and experienced entrepreneurs. You will find several books on how to start a new business, but very few books cover how to run a business and manage its day-to-day operations. The best part about this book is Ben Horowitz has shared his knowledge from his personal practical experiences. Also, he never beats around the bush. He is blunt and straightforward throughout this book. He also has a crisp sense of humor, making the book entertaining and fun to read. You can get the book here! 📖
7. The Little Book of Venture Capital Investing by Christopher Brown
All of us are aware of the weak job market these days. Most people are struggling to get good jobs that match their skill sets. In this book, The Little Book Of Venture Capital Investing, Christopher Brown talks about how Venture Capital is significant for the nation’s economic growth. People must start investing in innovative technology startups and small and medium-sized businesses. Venture Capital investment is also a highly financially rewarding approach to making money. If you want to start your Venture Capital journey, this book will teach you the industry’s fundamentals. The explanation by the author is easily understandable, making it accessible to everyone. You can get the book here! 📖
8. Bad Blood: Secrets and Lies in Silicon Valley by John Carreyrou
Journalist John Carreyrou released Bad Blood in the year 2018. The book covers the story of the rise and fall of Theranos. Theranos was a multibillion-dollar biotech startup founded by Elizabeth Holmes. This book is almost like a thriller. It’s about a famous corporate fraud, which is one of the biggest in the Silicon Valley premises. The startup revolutionalized the medical industry by introducing their device, which could perform various laboratory tests with just a drop of blood. The startup received a tremendous amount of capital from renowned investors. But there was one problem, the device didn’t work. This resulted in misdiagnoses of patients leading to wrong treatment as well. The founders tried to silence anyone who wanted to speak up about the fraud, including many journalists. It’s a must-read book to learn and stay away from fraudulent startups. You can get the book here! 📖
9. Build: An Unorthodox Guide to Making Things Worth Making by Tony Fadell
The author Tony Fadell is a consultant and runs an investment firm. He mentors businesses, and he is one of the best guides in the industry. Tony Fadell was in the team that built the iPod and the iPhone. In this book, Tony won’t give you any shortcuts. Instead, he will ask you to work hard. He mentions that many mediocre people are running modest businesses, but Tony is not here to guide someone who wants to stay mediocre. If you want to make it big and are willing to work the hours, this book is for you. Anytime you want business advice, you can pick up this book and dive into the sea of information inside it. You can get the book here! 📖
10. Loonshots: How to Nurture The Crazy Ideas That Win Wars, Cure Diseases, And Transform Industries by Safi Bahcall
One of the critical elements of making it big in a business is proper top-level management. Group behavior is complex, and Loonshots is an excellent book to learn about group dynamics. A lot of times, a group of mission-oriented folks ends up rejecting great ideas. Instead of being open to new unique ideas, they become rigid. In Loonshots, the author Safi Bahcall identifies the small shifts and changes in the structure of groups that controls their complex behavior. You will find multiple examples in the book that will make it easier for you to understand the concepts. You can get the book here! 📖
11. eBoys: The First Inside Account of Venture Capitalists At Work by Randall E.Stross
Who doesn’t like insider information, right? eBoys by Randall Stross will take you through the behind-the-scenes of brilliant entrepreneurs running successful business ventures. It’s the exciting story of the six tall men who started Benchmark, one of the most exciting venture capital firms in Silicon Valley. They managed to back billion-dollar startups like eBay, Webvan, etc. This book is an insider account of what it’s like running an exciting venture in Silicon Valley. It’s a book on ambition, experimentation, creativity, and risk-taking. It’s a fascinating book, and you can pick it even for a fun read. I highly recommend it to everyone. You can get the book here! 📖
12. The Power Law: Venture Capital and the Art of Disruption by Sebastian Mallaby
Many people have business ideas. Some of these ideas are even revolutionary. But rarely do they ever execute their plans and start building their business. Why, you ask? It’s because people think innovation demands expertise. We believe we need to be experts to innovate something. But that’s not true. Some of the great people in the business of our times, for example, Jeff Bezos, was not a bookseller, far from being an expert in it.
But he started his company Amazon from his garage, selling an extensive collection of books online. It’s inspiring, yes, but more than that, it’s a fact that great businesses don’t germinate from perfection or expertise. They originate from constant discovery. And successful venture capitalists are great at discovering revolutionary startups and companies. The best part about The Power Law is that it has lots of anecdotes about some of the world’s most successful businesses.
You will read about some of the most iconic venture capital stories and Silicon valley disasters. Even though this book is primarily US-based, it’s still an excellent read for anyone trying to read and learn about Venture Capital. Sebastian Mallaby has written this book in a storytelling format, making it enjoyable and easily readable even for beginners. I highly recommend this book. You can get the book here! 📖
I hope this comprehensive list of books will help you to learn about venture capital in depth. If you read these books, you will be prepared for different scenarios in starting, managing, and scaling up your business. And if you are an aspiring venture capitalist looking for exciting startups, you will find incredible wisdom from industry experts. So, you must add these books to your bucket list and expand your horizons.