VENTURE CAPITAL
VENTURE CAPITAL????????
?
Venture capital is financial capital provided to early- stage, high potential, high risk, growth start up companies.
?
It is the capital available for financing the new business ventures by means of making investment of long term equity finance where venture capitalist earns return from capital gain.
TYPES OF VENTURE CAPITAL
?
Independent venture capital fund
?
Captive venture capital fund
?
Government funds
VENTURE CAPITAL INVESTMENT PROCESS
?
Deal origination Screening
?
?
Evaluation or due diligence
Deal structuring Post-investment activities and exit
?
?
STAGES IN VENTURE CAPITAL FINANCING
Financial stages Period taken Risk involved
Seed money
Start up
1st stage
7-10 years
5-9 years
3-7 years
extreme
very high Initializing operations
High Start commercial production and marketing
Activity to R&D for be financed product development
Financial stages Period taken
2nd stage
3rd stage
4th stage
3-5 years
1-3 years medium
1-3 years low
Risk involved Sufficiently high
Activity to be financed
Expand market and growing working capital need
Market expansion, acquisition &product development forprofit making company
Facilitating public issue
METHODS OF VENTURE FINANCING
?
Equity Conditional Loan Income Note
?
?
?
Other Financing Methods
ADVANTAGES OF VENTURE CAPITAL
?
It provides a strong capital base for future growth by injecting long term equity finance The venture capitalist is a business partner, sharing both the risks and rewards. Venture capitalists are rewarded by business success and the capital gain Provides practical advice and assistance to the company based on past experience with other companies.
?
?
VENTURE CAPITAL FUNDING IN INDIA
?
Those
promoted
by
the
Central
Government
controlled
development finance institutions. For example : ICICI Venture
Funds Ltd.
?
Those promoted by State Government controlled development
finance institutions. For example: Punjab InfoTech Venture Fund
?
Those promoted by public banks. For example: SBI Capital Market
Ltd.
?
Those promoted by private sector companies. For example: Infinity Venture India Fund established as an overseas venture capital fund. For example: HSBC Private Equity management Mauritius
?
doc_971574275.pptx
VENTURE CAPITAL????????
?
Venture capital is financial capital provided to early- stage, high potential, high risk, growth start up companies.
?
It is the capital available for financing the new business ventures by means of making investment of long term equity finance where venture capitalist earns return from capital gain.
TYPES OF VENTURE CAPITAL
?
Independent venture capital fund
?
Captive venture capital fund
?
Government funds
VENTURE CAPITAL INVESTMENT PROCESS
?
Deal origination Screening
?
?
Evaluation or due diligence
Deal structuring Post-investment activities and exit
?
?
STAGES IN VENTURE CAPITAL FINANCING
Financial stages Period taken Risk involved
Seed money
Start up
1st stage
7-10 years
5-9 years
3-7 years
extreme
very high Initializing operations
High Start commercial production and marketing
Activity to R&D for be financed product development
Financial stages Period taken
2nd stage
3rd stage
4th stage
3-5 years
1-3 years medium
1-3 years low
Risk involved Sufficiently high
Activity to be financed
Expand market and growing working capital need
Market expansion, acquisition &product development forprofit making company
Facilitating public issue
METHODS OF VENTURE FINANCING
?
Equity Conditional Loan Income Note
?
?
?
Other Financing Methods
ADVANTAGES OF VENTURE CAPITAL
?
It provides a strong capital base for future growth by injecting long term equity finance The venture capitalist is a business partner, sharing both the risks and rewards. Venture capitalists are rewarded by business success and the capital gain Provides practical advice and assistance to the company based on past experience with other companies.
?
?
VENTURE CAPITAL FUNDING IN INDIA
?
Those
promoted
by
the
Central
Government
controlled
development finance institutions. For example : ICICI Venture
Funds Ltd.
?
Those promoted by State Government controlled development
finance institutions. For example: Punjab InfoTech Venture Fund
?
Those promoted by public banks. For example: SBI Capital Market
Ltd.
?
Those promoted by private sector companies. For example: Infinity Venture India Fund established as an overseas venture capital fund. For example: HSBC Private Equity management Mauritius
?
doc_971574275.pptx