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    Presented By-3. Abhishek Khandelwal 11.ashutosh Agrawal 35.prabhat Kumar Choubey 48.raunak Dhupar

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    Venture capital is money provided by professionals to young, growing companies that have potential for significant growth. It provides long-term equity financing and a solid capital base. Venture capitalists are business partners who share risks and rewards, and can provide advice based on experience. Venture financing includes equity, conditional loans, income notes, and participating debentures. Venture capital was formally introduced in India in 1987 and is an important source of funding for startups and small businesses.

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    Presented By-3. Abhishek Khandelwal 11.ashutosh Agrawal 35.prabhat Kumar Choubey 48.raunak Dhupar

    Uploaded by

    ashu03261
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    Venture capital is money provided by professionals to young, growing companies that have potential for significant growth. It provides long-term equity financing and a solid capital base. Venture capitalists are business partners who share risks and rewards, and can provide advice based on experience. Venture financing includes equity, conditional loans, income notes, and participating debentures. Venture capital was formally introduced in India in 1987 and is an important source of funding for startups and small businesses.

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    Venture capital is money provided by professionals to young, growing companies that have potential for significant growth. It provides long-term equity financing and a solid capital base. Venture capitalists are business partners who share risks and rewards, and can provide advice based on experience. Venture financing includes equity, conditional loans, income notes, and participating debentures. Venture capital was formally introduced in India in 1987 and is an important source of funding for startups and small businesses.

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    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    13 views11 pages

    Presented By-3. Abhishek Khandelwal 11.ashutosh Agrawal 35.prabhat Kumar Choubey 48.raunak Dhupar

    Uploaded by

    ashu03261
    Venture capital is money provided by professionals to young, growing companies that have potential for significant growth. It provides long-term equity financing and a solid capital base. Venture capitalists are business partners who share risks and rewards, and can provide advice based on experience. Venture financing includes equity, conditional loans, income notes, and participating debentures. Venture capital was formally introduced in India in 1987 and is an important source of funding for startups and small businesses.

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    of 11

    Presented by-

    3. Abhishek khandelwal
    11.Ashutosh agrawal
    35.Prabhat kumar choubey
    48.Raunak dhupar
     Venture capital means funds made available
    for startup firms and small businesses with
    exceptional growth potential.

     Venture capital is money provided by


    professionals who alongside management invest
    in young, rapidly growing companies that have
    the potential to develop into significant economic
    contributors.
    The SEBI has 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 and makes or proposes
    to make investments in accordance with
    the regulations’.
     Itinjects long term equity finance which provides
    a solid capital base for future growth.

     The venture capitalist is a business partner,


    sharing both the risks and rewards. Venture
    capitalists are rewarded by business success and
    the capital gain.

     The venture capitalist is able to provide practical


    advice and assistance to the company based on
    past experience with other companies which were
    in similar situations.
    The financing pattern of the deal is the
    most important element. Following are the
    various methods of venture financing:
    Equity
    Conditional loan
    Income note
    Participating debentures
    Quasi equity
     The concept of venture capital was formally
    introduced in India in 1987 by IDBI.

     Thegovernment levied a 5 per cent cess on all


    know-how import payments to create the venture
    fund.

     ICICI started VC activity in the same year

     Later
    on ICICI floated a separate VC
    company - TDICI
     Venture capital firms typically source the majority
    of their funding from large investment
    institutions.

     Investment institutions expect very high ROI

     VC’s invest in companies with high potential


    where they are able to exit through either an IPO
    or a merger/acquisition.

     Their primary ROI comes from capital gains


    although they also receive some return through
    dividend.
     The down market virtually closed the IPO market
    for emerging companies.

     Withless opportunities for getting ROI investors


    tend to scale back, adjust their investment focus
    and/or get more picky in funding companies.

     Theinvestors that put money into their funds


    became less aggressive during recession so it
    was harder for the VCs to raise money.
     VC can help in the rehabilitation of sick units.
     VC can assist small ancillary units to upgrade
    their technologies
     VCFs can play a significant role in developing
    countries in the service sector including
    tourism, publishing, health care etc.
     They can provide financial assistance to
    people coming out of universities, technical
    institutes, etc thus promoting entrepreneurial
    spirits

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