Secrets of Sand Hill Road

Outline

Secrets of Sand Hill Road (2019) explains how venture capital really works, from the perspective of an experienced investor. Scott Kupor describes how venture firms raise money, choose which startups to fund, negotiate term sheets, and work with company boards. The book helps founders and anyone curious about startups understand how investors think and how to build a strong relationship with them.

• Venture capital is a business with its own mechanics, and the book explains how it works from an experienced investor's point of view.
• Venture firms must raise money before they can invest, so their own fundraising shapes which startups they choose to back.
• Investors follow a process when deciding which startups to fund, and founders gain by understanding how they think.
• Negotiating a term sheet is a key step, and knowing what the terms mean helps founders reach a fair deal.
• Investors often work with a company's board, so a strong, honest relationship with them matters long after the money arrives.

Scott Kupor is an American venture capitalist and author who served for many years as managing partner of Andreessen Horowitz, one of Silicon Valley’s leading venture capital firms. He has also taught at Stanford Law School and worked on policy issues affecting startups. Secrets of Sand Hill Road is his first book.