Even though her book is mainly instructional, Quindlen certainly has the credentials to write a "confessions" tome. Working in her early years for Alex.Brown and Sons, the investment banking firm, she became Wall Street's first dedicated personal computer software analyst. It was Alex.Brown that took Microsoft public. She later became instrumental in bringing her firm to accept AOL'S Steve Case as a client. Bill Gates phones her for advice. Her husband works with Paul Allen. In Quindlen's current position as a partner in Silicon Valley's Institutional Investment Partners (IVP), she relates stories about the kids who founded Excite--didn't even have a garage!
Though all this and more is entertaining, make no mistake about it--this is a business book! Business models, venture capital defined and explaned, how deals are made and valuations decided are all covered. Her book is replete with positive and negative examples every young company should consider. Quindlen has been there, done that, has the t-shirt, and now the book, to prove it.
Anecdotal easy-reading unreferenced chapters span:
* Life in the bubble- background on Sand Hill venture capitalists, the Internet and Silicon-Valley startups.
* People- desirable startup success characteristics including passion & drive, decisiveness, determination, true motivations of founders and leadership/focus/clarity [don't try stretch in too many new areas e.g. market, technology and team].
* Markets- desirable characteristics including large growth market size, needs rather than wants, simple elevator offering description, hype, and fads [e.g. must be technically feasible, proof of paying customers, listen to customer feedback else is fad].
* Business models- desirable characteristics as per standard models, plus focus on NOT licensing, flexibility of model, "faster, better, cheaper" versus "brave new world", costs, distribution models, manage expectations, and keep eye on (cash) burn rate.
* Venture capitalists- description of stages (e.g. initial pitch, follow-up meeting, due diligence, partner meeting pitch, deal negotiation & close), VCs are partners, listen to VC feedback.
* Entrepreneurs- common mistakes (e.g. hire wrong, think small, tell VC what think want to hear, underestimate competition, focus on money), determination, board meetings, hype, avoid family businesses, and be paranoid.
* Fine Line Between Bizarre & Brilliant- interesting ideas including one described as unintelligible (Digital Datawac) which seemed straightforward (should this reviewer be worried?).
* And short ending chapters on: The Dumbest Decision I Ever Made; Valuation and More; A View from the Trenches; Five Short Years to a Revolution; and an Appendix primer on financing and valuation.
Despite being an easy-read & addressing an interesting subject with basic structuring of IVP material, 'Confessions' ultimately lacks content. Useful for industry newcomers or startups as background material.
The book is funny to read after the Internet-bubble has burst. Ruthann is busy trying to say how venture capitalists are most valuable for a company's success, and how the Internet is going to transform everything and how the "new economy" companies need to be valued, etc.
You are allowed to spend only half an hour on this book. :-)