Venture Capital

LAVANYA MANJULA MANJUNATH NAVEEN JAIN

Presented By

WELCOME TO VENTURE CAPITAL PRESENTATION

Presented By:-

LAVANYA MANJULA MANJUNATH NAVEEN JAIN

GuideProf DEEPU

WHAT IS VENTURE CAPITAL Venture capital means funds made available for startup firms and small businesses with exceptional growth potential.Venture capital is long-term risk capital to finance high technology projects which involve risk but at the same time has strong potential for growth.

DEFENITIONThe SEBI defined Venture Capital fund in

its regulation 1996 as ‘a fund established in the form of a company or trust which raises money through loans, donations, issue of securities or units as the case may be & makes or proposes to make investments in accordance with the regulations’.

FEATURES OF VENTURE CAPITAL Long term investment:Lack of liquidity:High risk return:Private equity:Wide scope: Equity participation:

ADVANTAGES OF VENTURE CAPITALprovide large sum of equity finance.Venture Capitalist are rewarded by

business success & the capital gain. Able to bring wealth and expertise to your

companyThe Venture Capitalist also has a wide

network of contacts. Providing additional funds.

DISADVANTAGES OF VC

Lengthy and complex process (needs detailed business plan, financial projections and etc.)

In the deal negotiation stage, you will have to pay for legal and accounting fees

Investors become part owners of your business - founder loss of autonomy or control

Problems facing by VC Requirement of an experienced management

team. Requirement of an above average rate of return

on investment. Longer payback period. Uncertainty regarding the success of the product

in the market. Questions regarding the infrastructure details of

production. Skills and Training required. Time Period. Interference in Business:

Top cities attracting VC investments:

CITIES SECTORS

Mumbai Software services, BPO, Media, Computer graphics, Animations, Finance & Banking

Bangalore IT & Bio-technology

Delhi Software services, Telecom

Chennai IT , Telecom

Hyderabad

IT & ITES, Pharmaceuticals

Pune Bio-technology, IT , BPO

VC industry wise segmentation

6.947.73

11.5

4.32

27.954.82

11.43

12.92

3.369.03

Percentage

IT & ITES

Energy

Manufacturing

Media & Ent.

BFSI

Shipping & logistics

Eng. & Const.

Telecom

Health care

VENTURE

CAPITAL

FUNDING

IN

INDIA

VC funding in IndiaVCFs in India can be categorized into

following five groups:1) Those promoted by the Central Government controlled

development finance institutions. For example: - ICICI Venture Funds Ltd. - IFCI Venture Capital Funds Ltd (IVCF) - SIDBI Venture Capital Ltd (SVCL)

2) Those promoted by State Government controlled development finance institutions. :-For example:

- Punjab Infotech Venture Fund - Gujarat Venture Finance Ltd (GVFL) - Kerala Venture Capital Fund Pvt Ltd.

3) Those promoted by public banks. :- For example: - Canbank Venture Capital Fund - SBI Capital Market Ltd

4)Those promoted by private sector companies. :-For example:

- IL&FS Trust Company Ltd - Infinity Venture India Fund

5)Those established as an overseas venture capital fund. :-For example:

- Walden International Investment Group - HSBC Private Equity - management Mauritius Ltd

Remedies taken for VC Reduce the rules and regulations of SEBI.Investment made on development of

management and employees through training, improving skills.

Avoid venture capitalist in interference in Business activity.

Increasing market facilities.Provide more infrastructure facilities.

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