Read The Startup Game: Inside the Partnership between Venture Capitalists and Entrepreneurs by William H. Draper III Eric Schmidt Online


Entrepreneurs drive the future, and the last several decades have been a thrilling ride of astounding, far-reaching innovation. Behind this transformative progress are also the venture capitalists - who are at once the investors, coaches and allies of the entrepreneurs. William H. Draper III knows this story first-hand, because as a venture capitalist, he helped write it.Entrepreneurs drive the future, and the last several decades have been a thrilling ride of astounding, far-reaching innovation. Behind this transformative progress are also the venture capitalists - who are at once the investors, coaches and allies of the entrepreneurs. William H. Draper III knows this story first-hand, because as a venture capitalist, he helped write it. For more than 40 years, Bill Draper has worked with top entrepreneurs in fabled Silicon Valley, where today's vision is made into tomorrow's reality. The Startup Game is the first up-close look at how the relationship between venture capitalists and entrepreneurs is critical to enhancing the success of any economy.From a venture capitalist who saw the potential of Skype, Apollo Computer, Hotmail, OpenTable, and many other companies, come firsthand stories of success. In these pages, Draper explores how to evaluate innovative ideas and the entrepreneurs behind those ideas, and he shares lessons from Yahoo, Zappos, Baidu, Tesla Motors, Activision, Measurex, and more. Also, in revealing his on-the-ground account of how Deng Xiaoping brought China roaring into the modern world and how Manmohan Singh unlocked the creative genius of Indian entrepreneurs, Draper stresses the essential value of farsighted political leadership in creating opportunity.The author also discusses his efforts to bring best practices of the venture capitalist/entrepreneur partnership to the social sector.Written in an engaging narrative, and incorporating many of the author's personal experiences, this book provides a much-needed look at how the world of venture capital and entrepreneurship works....

Title : The Startup Game: Inside the Partnership between Venture Capitalists and Entrepreneurs
Author :
Rating :
ISBN : 9780230104860
Format Type : Hardcover
Number of Pages : 272 Pages
Status : Available For Download
Last checked : 21 Minutes ago!

The Startup Game: Inside the Partnership between Venture Capitalists and Entrepreneurs Reviews

  • Eugene
    2019-01-27 05:05

    great book from one of the first venture capitalist who shared his principles, stories, approaches to working with entrepreneurs and in investing. the author was in the very beginning of venture investments who started the Drapper & Johnson Ventures along with his partner Pitch Johnson and then started Sutter Hill Ventures, one of the oldest venture capital firms.The book tells the story of becoming a venture investor at earliest days (when Internent companies was not yet a big game) and, most important, the story of working with entrepreneurs and helping them to grow their business with venture capital, advice, connections, help with hiring. The author shares stories from his experience where he was involved into: Yahoo, Activision, United Nations, Rediff, Ramp Networks, Selectica, Hotmail (Tim Draper played the key role in Hotmail's growth), Skype, Baidu, Tesla, SpaceX, OpenTable, DivX and others. Author also describes how typical venture fund works, how exits work, shares lot of stories of collaboration (successful and unsuccessful) between venture capitalists and startup founders.The author worked with entrepreneurs for decades and points to the most important things in startups: founders and the team, brains and education (founding your connections), energy and passion, expertise (that allows to have self-confidence), vision (but beware of vision with bad execution), integrity (that also is the foundation of the reputation), sense of humor. Focus on people, trust, team, don't forget background checks. Great venture capitalist helps with hiring, first customers, partners. More opportunities for investing are in Asia and in India.

  • Herve
    2019-01-22 22:47

    As I wrote in my previous post on a few Indian tech start-ups, I just read The Startup Game by Bill Draper. In general, that kind of books is of average quality, this one is much above the average, though this is just my personal feeling. I like what is written and here my summary.Bill Draper is one of the fathers of venture capital and belongs to a interesting genealogy. His father was a grandfather of VC and his son is currenlty an active investorMore in the chapters of my book about venture capital!Draper’s book begins with Buck’s, one of the famous meeting places of Silicon Valley (SV). SV is known as an open environment, where people meet easily, and public places such as bars and restaurants have become famous for this. There was the Wagon Wheel Bar, there is Buck’s or Il Fornaio and a few more.He also mentions -page 5- another famous component of the SV legend, the Garage. He explains how he missed Yahoo even if he visited their famous trailer donated by Stanford when “Yahoo was space-intensive”, a place “legendarily littered with overheating terminals, pizza boxes, dirty clothing and golf clubs”.Clockwise: HP, Yahoo, Google and Apple garages.Of course, if his book was about anecdotes only, Draper would be of small interest. He gives also many lessons. For example:- Hire managers “ambitious enough to help…. Adventurous enough to take a flyer on an almost untested vision of the future.” - Page 8.- “Don’t invest money you can’t afford to lose.” An important lesson about venture capital (Page 12)- Again on what is venture capital, when he planned an investment in real estate in Hawai, a Rockefeller partner had him fly in NY: “We don’t need you to put our money in real estate and then collect a fee and a carry, to add insult to injury. We became a partner in DGA because you told us you were going to invest in technology and honest-to-god entrepreneurs. It would have been far and away the best investment DGA could have made… although I cannot disagree with his main point that we should have focused on opportunities in our own neighborhood.” (Page 27)- On what is a good venture capitalist (page 30): Good judgement Record of success in another form of business Warm and friendly personality Intuitive sense of where the world is going- On the venture capital model (page 41), when he asked about his son’s first six investments: “dead, dying, bankrupt, probably won’t make it, and not so good”Uh-oh I said to myself. And what about the sixth investment, Tim?” I asked, trying to sound upbeat.He looked up and paused. “Home run!”.And he adds later, “a young man can succeed in venture capital with a small amount of money, a willingness to sift through a lot of chaff to get to the wheat, a tolerance for risk, and a reasonably good calibration of the potential of various entrepreneurs. It is also evident that luck plays a part, but the old adage comes to mind: the harder one works, the luckier one gets.”- On the entrepreneurs (page 54): “[Arthur] Rock feels that the most important ingredient in any company is the brains, guts and vision of the leader. If the product turns out to be wrong, the visionary leader will come up with a new one. If the market shrinks, the leader will stir the whole team toward another one.”- Then page 55: “the entrepreneurs with the lowest risk of failure are those who know their field intimately.” Then senior managers of a successful company backed by the same VC are second in importamce, then again those with the ability to recognize their own limits and agree that they can be replaced.- On entrepreneurs and investors (page 64) , he nearly copies Don Valentine (see below). “A fifty-fifty attitude: VCs put all the money, entrepreneurs all the blood, sweat and tears.”- Another legend of SV (and I think it is true) “SV is the home of the handshake. Your word is your bond – or you’re in trouble.” (page 99).- Could there be something changed in the SV culture? I mean too much finance people and financial engineering? Draper mentions investors should keep their shares in a company (chapter 7, page 173), at least if they believe in the future growth potential of the company value. But when in it comes to Skype acquisition by eBay (page 188), Draper sold his stock at $45.21 through some complex combination of puts and calls in less than a week after the closing of the deal. When Skype was bought, eBay’s share was $44.96… Six months later, eBay was trading at $33 a share.Finally, the top 10 avoidable mistakes by entrepreneurs (page 75) : Creating overly optimistic projections Underestimating timelines. Trying to do everything yourself. Failing to master the elevator pitch. Not downsizing when necessary. Being inflexible. Not developing a clear marketing plan. Building a board that consists only of friends. Not taking action in a recession. Not knowing the right was to approach venture capitalists.He concludes with his vision of opportunities for the future (page 224):- The quantum computer- Synthetic life form- Decode and reprogram information systems of biology- Life science in general (diagnostics, therapeutics, medical devices, healthcare IT)- Voice and storage will be free- Small nuclear power plants (sic)- Changes in transportationIn a simple conclusion; a good book where you will learn some good lessons from Silicon Valley and elsewhere (i did not mention Draper spent 10 years with the UN and then created the first VC firm in India, through Draper International).Note: Don Valentine said about entrepreneurs and investors: “When people come as a team (usually it is three or four people and typically heavyweight on engineering), it is a complex process. But I think all of us have seen it in the earlier days, times when I can remember saying, “Well, look, we’ll put up all the money, you put up all the blood, sweat and tears and we’ll split the company”, this with the founders. Then if we have to hire more people, we’ll all come down evenly, it will be kind of a 50/50 arrangement. Well, as this bubble got bigger and bigger, you know, they were coming and saying, “Well, you know, we’ll give you, for all the money, 5 percent, 10 percent of the deal.” And, you know, that it’s a supply and demand thing. It’s gone back the other way now. But, in starting with a team, it’s a typical thing to say, well, somewhere 40 to 60 percent, to divide it now. If they’ve got the best thing since sliced bread and you think they have it and they think they have it, you know, then you’ll probably lose the deal because one of these guys will grab it.” Transcript of oral panel – the Pioneers of Venture Capital – September 2002More on

  • Lucas
    2019-01-27 01:07

    I like the stories about specific companies, though there wasn't enough on failures- the failure to success rate for each venture is maybe about 5-10 to 1 but the coverage in this book reverses that ratio.Overly positive and un-self-critical attitude of entire book is wearisome, maybe a book written by a journalist instead of this borderline auto-biography would be more balanced. The chapters that weren't about venture capital or lacked detail weren't very good. There are probably a million different books that talk about the need for vision, ambition, integrity, or other qualities that don't need to be rehashed here.Interesting criticism of the repeal of the Glass-Steagal Act, which paved the way for the recent financial crisis but also was bad for new businesses: there were four critical investment banks that were highly attuned to the needs of new companies desiring an IPO, but the large commercial banks that bought them cared little for the small investment opportunities they specialized in.

  • Adam
    2019-01-22 23:03

    An interesting read, but very light on specifics. From the title and description, I was hoping this book would get into the details around pre-funding work by founders, business plans, funding rounds, term sheets, negotiation points and opposing perspectives, etc., but other than a few passing references to the venture capitalist funding structure, these topics aren't really explored. I would summarize a large part of the book as follows: "I met these founders through [insert name drop], I decided to invest in their company, most of the time the investment returned a lot of money." I'd recommend this book if you are in interested in some of the historical background of the venture capital community in Silicon Valley, but as a resource to entrepreneurs looking for insight into the mechanics of raising funds from venture capitalists, this book is of limited use.

  • Tie Kim
    2019-02-06 23:13

    Fabulous insights from one of the most eminent venture capitalists who also is a terrific storyteller. This book is replete with sage advice on characteristics to seek when selecting a business partner, appraising leadership talent, and common mistakes to avoid. There are some memorable quotes sprinkled throughout the books and some of my favorites are listed below.* Mark Twain: "Why not go out on a limb? That's where the fruit is."* Japanese proverb: "Vision without action is a daydream. Action with vision is a nightmare."* John Milton: "Tomorrow to fresh woods and pastures new."I was also pleased to see my friend, Anne Marie Burgoyne, often mentioned in the chapter on philanthropy :)

  • Travis
    2019-02-21 06:06

    If you are looking for how to be an entrepreneur or venture capitalist this isn't the book for you, but if you are looking for intimate details and enriching stories in the lives of some of the greatest entrepreneurs and venture capitalists then this is where to get it. It is very much an autobiographical book which I found interesting, but I can see where some people might be looking for the keys to success and be disappointed.

  • Alice O'herin
    2019-01-26 06:59

    Highly informative for someone without deep industry knowledge about VC. Highly informative to learn about the key traits VCs look for, to understand the relationship between VCs and their fundees, and the startup space. It dwelt more on the biographical and philosophical than I expected, but I enjoyed the heavy emphasis on strong moral fiber and ethics within business. In particular, I was interested in the last chapter on the Draper Richard Foundation.

  • Stephanie Sun
    2019-02-06 22:56

    Read at the risk of finding yourself liking an adorable Republican.It won't change your life or enable you to instantly found, run, or even find a multimillion dollar business, so approach with realistic expectations. This is a candid, civilized, very personal, introductory take on the life of a Silicon Valley VC from one of the men who invented the job description.

  • Nadine Brown
    2019-02-03 04:56

    3/18/11 finished. Read first 8 chapters; skimmed rest. Gained insight into Draper's character, networking vital in vc/startup environment; traits of good leader other things vc's look for. Better understand funding rounds.Can not wait to share info in next interview, of course, to impress. :)Just skimming for networking ideas.

  • John
    2019-02-02 01:04

    A neat story from the family that founded venture capital (father), that launched the first international VC fund (writer) and launched the first international VC network (the son) - PLUS interesting journeys into some of the history of the 20th century - such as the Berlin Lift, Marshal Plan. One of the few books in this category that would interest my business colleagues AND my Dad !!

  • Phyllis
    2019-02-17 00:45

    Just finished reading my Uncle Bill's new book and it was quite fun! If you or anyone you know is an entrepreneur, this is a good combo business book/memoir. And if you're interested in great stories of the financial founding of Silicon Valley, he's the one to tell the stories. Enjoy!

  • Allison
    2019-02-02 04:56

    The book is like 10% info relevant and important to startups and 90% self-congratulatory autobiography that no one asked for. Gave me some good insight as to how VC culture works, at least -- lots of privileged, self-absorbed white guys at the helm.

  • Abhineet Kumar
    2019-01-25 03:58

    I liked this book for two reasons:- Insight into how Silicon Valley works, and its history as well as where it is headed.- Knowledge about the VC industry, as well as what's in an entrepreneurial DNA. I think its a quick read with interesting stories.

  • Richard Bravman
    2019-01-27 22:52

    Inspiring and instructive.

  • Dondi Hananto
    2019-02-05 05:01

    great first-person view of the world of venture capital financing

  • Trevor
    2019-01-25 01:48

    The author's tone is so smug and self-congratulatory that the book is unreadable. Would not recommend under any circumstance

  • Emrecan Dogan
    2019-01-25 03:12

    Half autobio, half insights into startups. The part that I liked the most was on social ventures.

  • David Chabot
    2019-01-23 04:51

    I thought this book would be much more detailed and into the specifics of the venture capital industry. It's still an interesting read, no doubt, but it's more a biography than a technical read.

  • Opengraphtestuser
    2019-02-15 06:47

    Fantastic and fun - more of an autobiography than a tutorial but definitely worth reading for anyone living in/interested in Silicon Valley and its history.

  • Troy Jensen
    2019-01-30 23:44

    An excellent overview of Startups and Venture Capital. A lot of the content I found fascinating but may not be of practical use to many readers. Overall it was a great read...

  • VJ
    2019-02-09 23:57

    Gives a good overview of Draper family, VC, deals.

  • Peter
    2019-02-11 00:43

    A strange combination of memoir and advice. Moderately useful. The author does a little too much name-dropping and is a little too impressed with credentials.