Books are one of the best ways to learn about a topic.
Art. Science. Finance. History.
A book allows you to absorb in a few hours what it may have taken an author decades to learn.
In the past, I have talked about how I always try to be reading two books at any given time, one fantasy book and one non-fiction book.
In fantasy, I exercise my imagination.
In non-fiction, I exercise just about everything else.
It will come as no surprise to most of you that a significant portion of the non-fiction part of that experience takes the form of books directly, or at least adjacently, related to the world of venture capital. I regularly get asked for resources about the industry. I thought a good place to start would be some of my favorite books on (or around) the topic. I should note that this is in no way an exhaustive list, this is simply the books that have had the biggest impact on me, my career, and the way I think about venture capital.
Without further ado, my list of must-read VC books (Amazon affiliate links included):
The Hard Thing About Hard Things by Ben Horowitz
The book that started it all. During the summer after my junior year of college, I had the opportunity to intern at a venture capital firm. I knew I wanted to be an investor, but that was about as specific as I could get. On the first day of work that summer, my boss handed me a list of books to read (many of which are included below). The first book I read was The Hard Thing About Hard Things by Ben Horowitz. The rest, as they say, was history. This was the book that first kindled my love of all things venture capital, tech, and entrepreneurship. It is a fascinating look into the ups and downs (and downs and more downs and somehow eventually even greater ups?!) of a dot-com era startup. Come for the lessons on leadership and entrepreneurship, stay for the rap lyrics and no holds barred commentary on the startup world. An amazing opportunity to learn from a successful technology entrepreneur who just happened to found one of the world’s most successful venture capital firms as his second act. Casual.
Creative Capital by Spencer E. Ante
If you want to learn about something, what better place to start than its beginnings? Creative capital is the story of one man, Gorges Doriot, and the monumental impact he had on the world by founding what we know of today as the venture capital industry. Doriot was an unassuming Frenchman academic who answered his adopted country’s call-to-arms by serving in World War II. After the war, he went on to found the first venture capital firm. An enjoyable and enlightening book that takes you back to the metaphorical primordial ooze of what turned into the modern venture capital industry.
Venture Deals by Brad Feld and Jason Mendelson
The definitive must-read for anyone interested in learning about the nuts and bolts of how venture capital deals are structured. Brad Feld and Jason Mendelson are legendary venture capitalists in their own right, but their contribution to the industry in the form of Venture Deals is pretty tough to beat. If you are a VC, read it. If you want to be a VC, read it. If you are an entrepreneur trying to raise venture capital, read it twice. Venture Deals walks you through the ins and outs of deal terms and gives you a baseline understanding of what you can expect when hand shakes have been made and the lawyers start putting pen to paper. If you are going to be spending any time in or around this industry, you will be a step behind if you haven’t read Venture Deals.
Zero to One by Peter Thiel and Blake Masters
Zero to One is the ultimate place to start understanding the world view of one of the most successful technologists and investors in history. The book is about how to think differently and build truly innovative products the world needs, instead of simply inventing better and better mousetraps. In some circles, Peter Thiel may be derided at worst and thought cliche at best, but I for one couldn’t have a higher opinion of his technological and ideological contributions. Zero to One is one of those books you are either going to love or you are going to hate. You will either be inspired by Thiel’s unique perspective or you will find yourself diametrically opposed to it. And in some ways, that is precisely the point.
The Lean Startup by Eric Ries
Another seminal book in the world of technology and venture capital. If you have had any exposure to modern technology development or startup building, chances are that you have come across at least some of the ideas contained in this book. Reis’ ideas have become so pervasive in the world of startups that they have become completely core to how companies are built. There are no such things as “lean startups” simply because nearly all high growth technology companies are built using the lean methodology today. The book is not without its share of critics COUGHkeith raboisCOUGH, but it is a pillar of the modern technology ecosystem. At the end of the day, The Lean Startup is about tightening feedback loops, pushing decisions as close to problems as possible, and getting customer input before you start building something they don’t want. Which business couldn’t use some of those strategies?
Powerful by Patty McCord
You want to learn how to build a world-class organization? You start by reading this book. Patty McCord was the architect behind the culture of one of the world’s most effective and impactful modern companies. Patty joined Netflix during its early days after previously working at Reed Hastings's prior startup. She was instrumental in creating a culture that favored candor, transparency, and trust over the normal HR jibber-jabber of engagement, hierarchy, and performance plans. Her key insight: People want to work on something important while being surrounded by really smart people and they want to be treated like adults. Get that wrong and all the hand-holding, all-staff retreats, and ping pong tables in the world won’t save you. An incredible book that guides you through thinking about building a company culture that is fit to excel in the dynamism of the modern world. Be warned though, if you are reading this while finding yourself stuck at a company with its head in the sand, you will find yourself in for a world of frustration.
Creativity, Inc. by Ed Catmull and Amy Wallace
The story of Pixar. Does anything else need to be said? Creativity, Inc. takes you behind the curtain of one of the most exciting and fascinating companies ever. It gives you an inside look at the trials (so. many. trials.) and tribulations of one of the most beloved companies in the world. If you read it for the heartwarming stories about how to capture the imagination, you won’t be disappointed, but this book is so, so much more. Creativity, Inc. isn’t just the history of Pixar, it is a guidebook on how to create a company where innovation always comes first. Where envelopes are pushed and conflict is handled directly out in the open instead of through anonymous feedback inboxes. The placement of Creativity, Inc. next to Powerful is no coincidence. You will see many of the same themes about transparency, treating people like adults, and holding employees to the highest possible standard echoed across both books. It’s almost like they might be on to something…
Elon Musk by Ashlee Vance
Hero or villain. Sympathetic or despicable. Genius or idiot. The modern titan that is Elon Musk refuses to be defined by easily traced lines. You really have a chance to know the man you need to be one of the few he lets into his inner circle. For the rest of us, we read this fantastic biography by Ashlee Vance. Halfway through the book, I wanted nothing more than to be Elon. By the end of the book, I wanted nothing less. Elon Musk’s life is one that defies all attempts at shallow categorization and in some ways this book reads more like an action novel than a biography. If you want to become an expert at building innovative companies, you absolutely must take the time to read about the life of the world’s most innovative company builder.
Loonshots by Safi Bahcall
One of my favorite books that I have read in recent years and one that, if you know me, I have probably recommended to you multiple times. Safi Bahcall excellently examines why it is that some companies are able to innovate and others aren’t. Why some are able to nurture the crazy ideas that change the world and others bury their most promising talent under paperwork and bureaucracy. So many non-fiction books follow the trope of “Here is my idea and here are 27 chapters that include slightly differing examples.” Loonshots is among the minority that truly break the mold and I found myself on the edge of my seat throughout. Throughout the book, Bahcall examines some of the very companies and people discussed on this very list and why their companies were able to succeed where competitors didn’t. I’ll give you a hint: It’s all structure.
Have you read any of these books? Are there any other must-reads for the next generation of venture capitalist? Let me know in the comments or on Twitter.