VENTURE CAPITAL IN INDIA

PARMINDER SINGH

CONTENTS

MEANING CHARATERSTICS ADVANTAGES / DISADVANTAGES PROCESS OF VENTURE CAPITAL STAGES OF FINANCE METHODS OF FINANCE THE VENTURE EXIT ROUTE FOR CAPITALIST VENTURE CAPITALIST IN INDIA

MEANING

Venture capital is concerned with financing

new start ups and highly technological loaded business projects for long term

CHARTERSTICS

Long term horizontal ( 5-7) High tech projects High risks and high profits Equity participation and capital gain Participation in management

ADVANTAGES

Employment Entrepreneurship Start up industries Business expertise

METHODS OF FINANCING

EQUITY SHARES CONDITIONA

L LOANS

QUASI EQUITY

PARTICIPATION

DEBENTURES

STAGES OF FINANCE

SEED CAPITAL

START UP

GROWTH PERIOD

PROCESS

Deal origination Screening Evaluation Deal structuring Post investment activity Exist plan

EXIT MODE

IPO TRADE SALE

MANAGEMENT BUYOUT MERGER

VENTURE CAPITALIST IN INDIA

ACCEL PARTNERS INDIASIDBI VENTURE CAPITAL INDIAAUGUST CAPITAL PARTNERSBLUE RUN VENTURESRELIANCE VENTURES ADITYA BIRLA VENTURENEXUS INDIA VENTURESNIRVANA VENTURES ADVISORS JAFCO ASIAHELION VENTURE PARTNERS

VENTURE CAPITAL : ROAD AHEAD

Entrepreneurship tradition Unregulated economic environment Disinvestment mechanism Fiscal incentives Broad based education Promotion efforts Institute – industry linkage R & D activities