Building Wealth through Venture Capital

Building Wealth through Venture Capital
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Advance Praise for Moving the Rock “The future comes at us fast – which means school reformers don’t have time to wait. They need real tools in real time. That’s why Moving the Rock is so important. Grant Lichtman has guidance for anyone – teachers, parents, administrators, government officials – intent on helping young people succeed not ‘someday,’ but today.” – Daniel H. Pink, best-selling author of Drive and A Whole New Mind “Grant Lichtman’s book is a clear and comprehensive guide to the “what" and the “how” of educational transformation. Organized around essential levers for change, it is a must-read for anyone who wants to make a difference in our schools.” —Tony Wagner, Harvard Ilab Expert in Residence, and best-selling author of The Global Achievement Gap and Creating Innovators” “This book gives me hope for a brighter future in education. Despite the dark clouds imposed by misguided policies, Grant Lichtman diligently tells stories of grass-roots innovations in the classrooms and schools all over the world. Moving the Rock is an inspiring call to action for all educators.” —Yong Zhao, Ph.D., Foundation Distinguished Professor, School of Education, University of Kansas “If you have children, or teach children, or want our children to succeed, this is a must-read book. Grant Lichtman throws down the challenge for all of us; that WE can change education, and he shows us just how successful schools everywhere are overcoming change-killing inertia in our schools.” —Todd Rose, best-selling author of The End of Average; Harvard University Moving the Rock: Seven Levers WE Can Press to Transform Educationgives educators, parents, administrators, students, and other stakeholders a clear paradigm for transforming our outmoded schools into schools that will help our children to meet the challenges of tomorrow. It’s no secret that our educational system is stuck. Moving the Rock shows the important roles all of us can play in un-sticking it by moving seven specific levers that will change the focus of education from what we teach to how we learn. Importantly, moving the levers is completely possible today, and in fact is already happening now in many schools. Drawing on research and extensive experience in the education community, Grant Lichtman outlines the seven essential levers that can profoundly change our schools so that we are teaching all our children how to learn, including • Creating the Demand for Better Schools • Building School-Community Learning Laboratories • Encouraging Open Access to Knowledge • Fixing How We Measure Student Success • Teaching the Teachers what They Really Need to Know • and more At the end of each of each chapter there are one or more challenges, ways that all of us can collectively turn the pioneering work of others into transformation for all our schools.

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Building Wealth through Venture Capital
A PRACTICAL GUIDE FOR INVESTORS AND THE ENTREPRENEURS THEY FUND
Leonard A. Batterson
Kenneth M. Freeman
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Copyright © 2017 by John Wiley & Sons, Inc. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per‐copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750‐8400, fax (978) 646‐8600, or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748‐6011, fax (201) 748‐6008, or online at www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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Library of Congress Cataloging‐in‐Publication Data

Names: Batterson, Leonard A., 1944– author. | Freeman, Kenneth M., 1949– author.

Title: Building wealth through venture capital: a practical guide for investors and the entrepreneurs they fund / by Leonard A. Batterson, Kenneth M. Freeman.

Description: Hoboken: Wiley, [2017] | Includes index. |

Identifiers: LCCN 2017016750 (print) | LCCN 2017020511 (ebook) | ISBN 9781119409373 (pdf) | ISBN 9781119409366 (epub) | ISBN 9781119409359 (cloth)

Subjects: LCSH: Venture capital. | Investments. | Business enterprises – Finance.

Classification: LCC HG4751 (ebook) | LCC HG4751 .B368 2017 (print) | DDC 332/.04154 – dc23

LC record available at https://lccn.loc.gov/2017016750

Cover Design: Wiley

Cover Image: © norph /Shutterstock

Preface

While taking some time off after selling his Chicago‐based company, MusicNow, to Circuit City in 2004, founding chairman and CEO Chris Gladwin had a new idea. It came to him while musing about how to store his extensive collection of photos on his personal computer. There just wasn't enough storage on his computer to house all those pictures.

Storing those keepsakes online in the cloud might work, but Gladwin worried they might then, outside of his control, be subject to loss or perhaps hacking. Not surprising, since he's an MIT graduate, Gladwin began reading books on encryption, and a really big new idea came to him that could alter the way data (including his and others' pictures) were stored and secured.

He realized that the execution of his idea would require forming a high‐tech company, putting together a team that could pull it off, and raising a lot of capital. While his MusicNow was a nice little company, a truly high‐technology startup with this big of an idea had not been developed and funded in Chicago in many years. Such startups had been gravitating to places like Silicon Valley, the towns around Boston's Route 128, and the Washington DC metro area, so the decision to try to do all this in Chicago seemed on the surface to be potentially as risky a decision as going after the big idea in the first place.

Chicago, like many other cities, had once been a hub of bustling entrepreneurship, with many hard‐driving, creative, fearless minds conjuring up the future. But such innovators – like Marshall Field in retailing, Potter Palmer in retailing and real estate, Michael Burke in telecommunications (Tellabs), the Galvin Family in electronics (Motorola), and Casey Cowell in data communications (U.S. Robotics) – seemed to be “yesterday's newspaper.” Until Chris Gladwin came along, there had been a long dry spell, and never in the dot‐com era had there been a high‐tech company created in Chicago that brought to the Midwest's commercial capital that virtuous cycle of local entrepreneur, assembling local talent, and capitalized through local funding.



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