VENTURE CAPITAL <ul><li>APURV GOURAV </li></ul><ul><li>MITCON Institute of Management, </li></ul><ul><li>Pune, Maharastra ...
History <ul><li>The father of modern venture capital industry – Georges doriot. </li></ul><ul><li>In 1946, Doriot co-found...
Cont…. <ul><li>Slow Growth in 1960s & early 1970s, and the First Boom Year in 1978 </li></ul><ul><li>The industry raised a...
Capital raising <ul><li>For any business , capital can be raised from owned sources or from borrowed sources. </li></ul><u...
Concept of venture capital <ul><li>Venture capital consists of two words “venture” & “capital”. </li></ul><ul><li>Venture ...
What is venture capital <ul><li>Venture capital financing is an alternative  financing source particularly when an industr...
Stages involved in VC <ul><li>Early stage financing: </li></ul><ul><li>a) seed capital/pre-start up  </li></ul><ul><li>b) ...
Cont…. <ul><li>Later stage financing: </li></ul><ul><li>a) development capital </li></ul><ul><li>b) bridge/expansion finan...
Criteria for investment <ul><li>minimum individual investment  </li></ul><ul><li>=  </li></ul><ul><li>total investment poo...
Setting the stage - Venture Capital in India <ul><li>Phase I - Formation of TDICI in the 80’s and regional </li></ul><ul><...
<ul><li>Phase IV – (current) Global VCs and PE firms actively </li></ul><ul><li>investing in India </li></ul><ul><li>300 F...
Top Cities attracting PE Investments(2007) 492 14 Kolkata 824 32 Ahmedabad 1380 41 Chenai 685 49 Bangalore 2688 63 Delhi/N...
 
 
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venture capital

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History of venture capital,phases of VC, venture capital in INDIA

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  • venture capital

    1. 1. VENTURE CAPITAL <ul><li>APURV GOURAV </li></ul><ul><li>MITCON Institute of Management, </li></ul><ul><li>Pune, Maharastra </li></ul><ul><li>INDIA </li></ul><ul><li>Email– apurvgourav@gmail.com </li></ul>
    2. 2. History <ul><li>The father of modern venture capital industry – Georges doriot. </li></ul><ul><li>In 1946, Doriot co-founded American Research and Development Corporation (AR&DC) with Ralph Flanders , Karl Compton and others, </li></ul><ul><li>Digital Equipment Corporation . in 1968 it provided AR&DC with 101% annualized Return on Investment ( ROI ). </li></ul><ul><li>AR&DC's $70,000 USD investment in Digital Corporation in 1957 grew in value to $355 million USD. </li></ul>
    3. 3. Cont…. <ul><li>Slow Growth in 1960s & early 1970s, and the First Boom Year in 1978 </li></ul><ul><li>The industry raised approximately $750,000 in 1978. </li></ul><ul><li>Highs & Lows of the 1980s in US. </li></ul>
    4. 4. Capital raising <ul><li>For any business , capital can be raised from owned sources or from borrowed sources. </li></ul><ul><li>Owned sources – raising capital from the sale of equity & preference share. </li></ul><ul><li>Borrowed sources – raising capital from loan & debentures. </li></ul>
    5. 5. Concept of venture capital <ul><li>Venture capital consists of two words “venture” & “capital”. </li></ul><ul><li>Venture – it means chance, hinting at speculation to try one's luck , involving risk , or hazard or exposure to insecurity or danger. </li></ul><ul><li>Another meaning of venture courage or boldness. </li></ul><ul><li>The capital investment may be in the form of equity participation or through supplying of debts. </li></ul>
    6. 6. What is venture capital <ul><li>Venture capital financing is an alternative financing source particularly when an industry is techno. Based ,the entrepreneur inexperienced and the investment carries high risk of loss. </li></ul><ul><li>Commercial bank and other financial institutions do not provide to such project. </li></ul><ul><li>Venture capital can also include managerial and technical expertise </li></ul>
    7. 7. Stages involved in VC <ul><li>Early stage financing: </li></ul><ul><li>a) seed capital/pre-start up </li></ul><ul><li>b) start-up, and </li></ul><ul><li>c) second round financing. </li></ul>
    8. 8. Cont…. <ul><li>Later stage financing: </li></ul><ul><li>a) development capital </li></ul><ul><li>b) bridge/expansion financing </li></ul><ul><li>c) turnaround </li></ul>
    9. 9. Criteria for investment <ul><li>minimum individual investment </li></ul><ul><li>= </li></ul><ul><li>total investment pool </li></ul><ul><li>_______________________________ </li></ul><ul><li>( partners * companies each can comfortably manage) </li></ul>
    10. 10. Setting the stage - Venture Capital in India <ul><li>Phase I - Formation of TDICI in the 80’s and regional </li></ul><ul><li>funds as GVFL & APIDC in the early 90s. </li></ul><ul><li>Phase II - Entry of Foreign Venture Capital funds </li></ul><ul><li>(VCF) between 1995-1999 </li></ul><ul><li>Phase III - (2000 onwards). Emergence of successful </li></ul><ul><li>Setting the stage - Venture Capital in India </li></ul><ul><li>India-centric VC firms </li></ul>
    11. 11. <ul><li>Phase IV – (current) Global VCs and PE firms actively </li></ul><ul><li>investing in India </li></ul><ul><li>300 Funds active in the last 3 years (Government, </li></ul><ul><li>Overseas, Corporate, Domestic) </li></ul>
    12. 12. Top Cities attracting PE Investments(2007) 492 14 Kolkata 824 32 Ahmedabad 1380 41 Chenai 685 49 Bangalore 2688 63 Delhi/NCR 5995 109 Mumbai Value (US million$) No. of deals city
    13. 15. THANK YOU

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