Venture Capital For Beginners (Complete Tutorial) Startup & VC Investing Explained 2023

*Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust, Members FDIC.

This video provides a concise breakdown of the venture capital landscape, explaining the funding stages, evaluation criteria, and the impact on entrepreneurs and investors.

Some VC books that I recommend:

Timestamps:
0:00 - Start here
3:00 - What is Venture capital?
5:26 - Types of alternative investments
5:58 - How big is VC?
6:47 - A word from our sponsor
8:00 - Who invests in VC?
11:53 - Startup accelerators
14:21 - Historic returns
17:25 - Types of startups
19:46 - GPs vs LPs
21:31 - Structure of VC fund
23:30 - Management fees + carried interest
28:05 - Stages of a startup
33:12 - Understanding Dilution
36:01 - Post vs Pre-money valuations
37:16 - Deal structuring
39:26 - Liquidity events
40:57 - Focused vs generalist funds
44:43 - Measuring the success of a VC fund
45:57 - 506(B) vs 506(C)
47:26 - Booms and busts
49:15 - What VCs look for
54:28 - How to start in VC

Delve into the world of venture capital as we demystify the funding process. We discuss seed investments, Series A, B, and beyond, highlighting the milestones they represent for startups. Uncover the factors venture capitalists consider when assessing investment opportunities, such as market trends, team composition, competitive advantage, and scalability.

Real-world examples and success stories bring the concepts to life, showcasing how venture capital has propelled innovative ideas into successful businesses. We also address the challenges entrepreneurs may face when seeking venture capital, enabling viewers to navigate the landscape more effectively.

Moreover, we explore the broader economic and societal impact of venture capital, including job creation and technological advancements. Gain insights into the risks and rewards for investors and understand how venture capital drives innovation across industries.

Whether you're an entrepreneur, investor, or simply curious about startup funding, this video provides valuable knowledge. Enhance your understanding of venture capital and gain the insights needed for your entrepreneurial journey.

Join us as we uncover the dynamics of venture capital and its role in shaping the startup ecosystem. Watch now for a comprehensive guide to venture capital and its impact on entrepreneurship and investment opportunities.

I am not a financial advisor. The ideas presented in this video are for entertainment purposes only. You (and only you) are responsible for the financial decisions that you make.

[NateOBrien]

*Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust, Members FDIC

[BrandonShi]

As a early stage startup founder. This is amazing. Thanks for this Nate! ⚡️

[Ohboycommentsection]

Thank you! They don't teach this in school by any means so thank you for being engaging and informative. A+

[zommanderz]

Please keep making informational videos like this. I know it doesn’t get a lot of clicks but these videos are amazing

It’s videos like this that make me a big fan of yours

[miguellopezlife]

The best video of venture capital I've seen (one of the only ones I've seen granted), I'm glad it came from you I've been watching you for years, wish you more success

[Marsawd]

What an excellent video; spectacularly clear graphics and description. Thanks a lot for the effort put into this!

[yaelmaimonartist]

Great vid! It's too much for me really but it's great to watch you explain things in your field of expertise, your enthusiasm is inspiring 😊

[Inspired]

This was clear and very helpful. Thank you!

[datteshverlekar]

Thank you @NateOBrien for the video. I was trying to make sense of a HBS case for my Entrepreneurial Finance assignment and decided to look for an YouTube video on Venture Capital, so glad to find yours! Have always enjoyed your finance videos.

[Notanumber]

Best video I have found on this so far! Thanks Nate!

[Oinnk]

So much information in one video. Not sure i'd get into this space right now, but I for sure am considering it for later in life! Thanks!

[escargot]

Thank you for making this video! I was looking for a good overview of what VC was like, and you explained the core concepts clearly :)

[baianakashaeva]

thank you for making this video! This is exactly what everyone need to see, who's planning their journey to VC industry.

[priyankapandya]

This video was immensely useful. Thank you!

[freeone]

i'm following silicon valley/ tech startups/ vc and tech in general since 2011. Never seen it summed up this simple and clear.

[cjjlnnw]

Thanks for this great introductory video!

[reddeviljeremiahgodsoftheg]

Thank you kindly for your amazing story

[TarekAbdalla-kzqw]

Thank you for the extensive Information

[cj]

hi, i dont know if its just me not being able ot find it, but you said you would leave books in description that you reccomend. could you list the boos please. Thankyou great video!

[blondscientist]

Hi Nate! Thanks for the video. Super informative. I could not find links to the books you think we should read. I am familair only with "Venture Deals" by Feld and Medelson.