ENTREPRENEURSHIP DEVELOPMENT

VARIOUS VENTURE CAPITAL FIRMS IN INDIATOPIC :

Meaning : Startup or growth equity capital or loan capital provided by private investors (the venture capitalists) or specialized financial institutions (development finance houses or venture capital firms). Also called risk capital. Venture capital is a type of funding for a new or growing business. It usually comes from venture capital firms that specialize in building high risk financial portfolios. With venture capital, the venture capital firm gives funding to the startup company in exchange for equity in the startup. This is most commonly found in high growth technology industries like biotech and software.

Definition: Definition: Start-up companies with a potential to grow need a certain amount of investment. Wealthy investors like to invest their capital in such businesses with a long-term growth perspective. This capital is known as venture capital and the investors are called venture capitalists.

Description: Such investments are risky as they are illiquid, but are capable of giving impressive returns if invested in the right venture. The returns to the venture capitalists depend upon the growth of the company. Venture capitalists have the power to influence major decisions of the companies they are investing in as it is their money at stake.

ROLES

Roles of Venture Capital Firms Play In A Developing Business? Here Are A Few :

1. General Business Strategy Advice

2. Develop a Financing Plan

3. Refine the Business Plan

4. Marketing Advice and Strategies

5. Develop Contingencies

TYPES OF VC FIRMS

1.Private venture capital firms

2.Small business investment companies

3.Industry sponsored ( banks and other financial institutions )

4.State government sponsored

5.University sponsored

ADVANTAGES AND DISADVANTAGES :

Advantages of VC funding 1.NO REPAY SCHEDULE

2.VC CONSULTANTS ARE PROFESSIONALS THAT GUIDE YOU

3. VC’S GUIDE YOU IN BEING A BETTER BUSINESS MANAGER

4.VC’S PROVIDE HR’S TO RECRUIT THE RIGHT PEOPLE

5.VC’S ARE CONTANTLY SUPERVISED

6.THEY ARE VERY EASY TO LOCATE

Disadvantages of VC funding 1.RETURN ON INVESTMENT

2.ADDITION OF VENTURE CAPITALIST INTO YOUR FIRM INTERNALLY

3.FINANCING DECISIONS

4. CONFIDENTIALITY PROBLEMS

5.  APPROVAL OF PLANS FROM VC’S MIGHT TAKE TOO LONG

6. HOLDING BACK OF FINANCES

7. VC’S FUNDING LIFE AND EXPECTED RETURN IS VERY SHORT LIVED

Various venture capital firms :

1.One97 Mobility Fund (Vijay Shekhar)

2.SAIF Partners

3.Matrix Venture Partners

4.Kae Capital

5.Orios Ventures

6.Bessemer Venture Partners

7.Nadathur

8.CVCFL ( canbank venture capital fund ltd )

9.Inventus

10.Kitven

Thank you