Ayaz Momin (09) Mandar Kulkarni (23) Sneha Mohite(28) Nikhil Sonar(00) Prashant khandekar(61) Venture Capital Venture Capital An Undertaking Involved Risk
Amount invested by the person/s to carry out the newly established business Evolution of VC in India 1973 - Development of SMEs highlighted the need for Venture Capital.
1988 - The Government announced Controller of Capital Issues.
At about same time, World Bank arranged for VC awareness seminars
ICICI and UTI First Venture Capital operations in India
1990 - Other VCFs Funds were established like the Gujarat Venture Finance Ltd (GVFL), Andhra Pradesh AP Industrial Development Corporation (APDIC) and the Canara Bank Venture Capital Fund.
1993 Formation of the Indian Venture Capital Association
1996- The regulatory environment of the industry was defined by the SEBI (Venture Capital Fund) Regulations, 1996.
2000-2007 - Introduction of the Finance Act, 2000 fuelled the growth of VCF , VCF industry has had an upswing
Need of Venture Capital Lack of Capital for Investment Features of Venture Capital Lack of liquidity
High risk
Long-time horizon.
Equity participation and capital gains.
Participation in management
Process Pre seed Stage Seed Stage Early/ First Stage Second Stage Third Stage Bridge Mezzanine Financing Venture Capitalist A venture capitalist is a person who invests in a business venture, providing capital for start-up or expansion. Venture capitalists are looking for a higher rate of return than would be given by more traditional investments.
Venture Capital Fund Venture capital fund is a partnership or trust or a company that primarily invests the financial capital of promoters and other investors in enterprises that are too risky for the standard capital markets or bank loans
Venture Capital Funds In India Central Government controlled development finance institutions ICICI Venture Fund Ltd IFCI Venture Capital Funds Ltd SIDBI Venture Fund Ltd
State Government controlled development finance institutions Punjab Infotech Venture Fund Gujarat Venture Finance Ltd Kerela Venture Capital Fund Pvt Ltd
Public Banks Canbank Venture Capital Fund SBI Capital Market Ltd
Private Sector Companies IL & FS Trust Company Ltd Infinity Venture India Fund
Overseas Venture Capital Fund Walden International Investment Group HSBC Private Equity Management Mauritius Ltd On what basis VCs provide Finance? Management Potential for Capital Gains
Advantages
They can provide large sum of Equity Finance.
Able to bring wealth and expertise to your Company.
Easier to secure future funding from other sources.
The Business is not obligated to repay the money.
Disadvantages 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
Future Prospect of VC in India Help in the Rehabilitation of Sick Units.
Assist small ancillary units to upgrade their Technologies.
Play a significant role in Developing countries. in the service sector including Tourism, Health Care etc.
Provide Financial assistance to people, thus promoting entrepreneurial spirits.