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Assignment 1

The document discusses success stories of venture capital funding for enterprises in India. It talks about how venture capitalists provide startups with funding in exchange for equity. Some success stories mentioned are of Flipkart receiving funding from Accel Partners and Oyo receiving funding from Lightspeed Venture Partners. It also discusses the process of obtaining venture capitalist funding and related challenges for entrepreneurs.

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253 views3 pages

Assignment 1

The document discusses success stories of venture capital funding for enterprises in India. It talks about how venture capitalists provide startups with funding in exchange for equity. Some success stories mentioned are of Flipkart receiving funding from Accel Partners and Oyo receiving funding from Lightspeed Venture Partners. It also discusses the process of obtaining venture capitalist funding and related challenges for entrepreneurs.

Uploaded by

Gaming Theater
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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www.iba.ac.

in

Assignment # 1: On the Assigned Topic


Entrepreneurship NEN-201; Trimester 2; PGDM 19-21

Name: Maharaj Dey Last date for 27-Nov-2019 (Wed), 2 pm


submission
Regn. No.: FPB1921/025 Date of submission: 27-Nov-2019
Section : Section A Signature of Student:

Maximum Marks = 20 Secured Marks =


TOPIC Success stories of VC funding for Enterprises in India
Note: You should submit both hard (printed & signed) & soft (MS-word file) copy through CRs
 Start this individual assignment on 20-Nov-2019 (11.15am), complete it by using weekend
(Sat/Sun)
 Late submission NOT entertained; -50% for delay upto 24 hours (after stipulated timeline) &
thereafter it is NIL
Objectives of this assignment are to:
a) Learn what is about the Assigned TOPIC, in greater detail
b) Understand the ecosystem of entrepreneurship, in Indian context.

1 Introduction
A venture capitalist is a private equity investor that provides capital to companies
exhibiting high growth potential in exchange for an equity stake. This could be
funding startup ventures or supporting small companies that wish to expand but do not
have access to equities markets. Venture capitalists are willing to risk investing in such
companies because they can earn a massive return on their investments if these
companies are a success. VCs experience high rates of failure due to the uncertainty that
is involved with new and unproven companies.
2 Details on ……………
Process of getting venture capitalist:
 Picking The Right VC Firm: The foremost concern in raising VC funding is
picking the right firm.
 Creating The Right First Impression: The entrepreneur needs to convince the
investors about the potential of his business, the clarity of the strategies, growth
path and business goals, the estimated time to earn profits and returns in the
business plan.
 Timing of Investor Approach: Approaching and persuading the analysts and
associates of the VC firms to fix a meeting with the GPs for the deal to get them
interested in investing.
 Practicing Healthy Caution: While placing the business pitch or convincing the
investors for VC funding, the entrepreneur needs to be very careful about what
information to share with the investors.

Challenges for Entrepreneurs:

© Indus Business Academy (IBA), 2019 NEN201 – Assignment #1 1|Page


www.iba.ac.in

Every step in a business comes with its own share of challenges and VC funding is
definitely not an exception. With VC funding comes other things, that needs to be taken
care of well. To start with, since raising VC fund for startups comes with conditions of
earning a certain level of return and the VC firm having a stake in the company, the
entrepreneur needs to gauge well his abilities to earn profits as well as the pros and cons
of losing autonomy in business decisions and being accountable to the investment firm.
3 Summary & Conclusions
Some of the success stories:
Flipkart wouldn’t have possibly happened had someone at Accel Partners not believed
that two young Amazon executives could build Amazon’s bête noire in India. Similarly,
Oyo probably wouldn’t have become a behemoth under Ritesh Agarwal had somebody
at Lightspeed Venture Partners not shown faith in the high school dropout’s business
acumen.
Retail Jewellery marketplace joolz raises USD 500K pre series a round funding from ah
Ventures, Powerhouse Ventures & Others
Ashwin Srivastava, director of Idein Ventures and Qriyo, says, “We are extremely proud
of our investment in Qriyo as it has started changing the definition of education in small
cities of India. We see them as a major international player in the long run, as problems
of education in India are similar to those in UAE, China and rest of Asia. We have
contributed a lot to Qriyo beyond money and hope to continue the same and take them
global in the long run.”

Conclusions: As world markets are becoming more and more competitive, thus, it is
necessary to choose the right access to human capital to guide and monitor along with
the requisite funds necessary for new projects. Venture Capitalists in India have ensured
newer avenues and expansion. There are large sectors of the economy that are ripe for
venture capital investors like IT, Pharma and other service industries too. Therefore,
Venture Capitalists are having positive response to do business in Indian. As there is a
risk factor, one should do a thorough study before getting into the process

4 Key Learning Points (KLPs)


 It’s very hard to ran a business.
 Karnataka is an entrepreneurial hot spot.
 The state government takes good care of its entrepreneurs.
 Policies support the growth of business in this region especially, new businesses.

5 Important References
https://startup.karnataka.gov.in/
https://inc42.com/

NOTE:
 This is a suggested guideline / template, you can collect most relevant information;
as appropriate.
 Min 2 pages & maximum 3 pages: Times New Roman Font, 12 font size Text, single
line spacing

© Indus Business Academy (IBA), 2019 NEN201 – Assignment #1 2|Page


www.iba.ac.in

 Cut, copy & paste from internet sources may not give you good marks
--***--

© Indus Business Academy (IBA), 2019 NEN201 – Assignment #1 3|Page

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