Venture Capital/Private Equity; provides long-
term, committed share capital, to help
unquoted companies grow and succeed. If you
are looking to start up, expand, buy into a
business, buy out a division of your parent
company, turnaround or revitalise a company,
Private Equity could help.
Venture capital comes from Institutional
investor and High net worth individuals or
families and is pooled by dedicated firms
A venture capitalist is a person or institutional firm that
makes venture investment and these venture capitalist
are expected to bring managerial and technical expertise
as well as capital to their investment
WHO ARE VENTURE CAPITALIST
Who can avail venture Capital?
Generally Venture capitalist firm invest
in high technology industries such as
biotechnology and IT (Information
•Should be a Technology Company.
•Can you be a market leader.
•Will it be cheap to make this company.
•Clear distribution channel.
•Can the company go public or Acquired.
WHY VENTURE CAPITAL?
Firms opt for venture capital even
though the cost of acquiring is
higher because it will be difficult for
new and budding firms to acquire
loans from banks or raise capital
1.Half-baked business plans.
2. Focusing too much on the idea
and too little on the management
3. Not asking for enough money
4. Having too many lenders or investors
5. Failing to get the proper legal
6. Poor cash flow management
6 ‘ biggest mistakes in raising start up Capital?
Intel, Cisco, 3Com,
Juniper, Apple, EMC,
Sun, Wind River
ORCL, MSFT, SEBL, EA,
Lotus, Kana, Omniture,
GOOG, YHOO, Ebay,
AOL, Skype, Netscape,
Genentech, Amgen, Alza,
VCs partner with
entrepreneurs to build
the companies of
Submit business plan
Meet the people
Light due diligence
Heavy due diligence
Grow the company
VENTURE CAPITAL IN INDIA
With the advent of liberalization, India has
been showing remarkable growth in the
economy in the past 10 - 12 years.
The venture capital industry in India has
grown dramatically in the last few years,
even boasting its own ‘Silicon Valley' in the
form of Bangalore.
(i) Existence of a globally competitive high technology.
(ii) Globally competitive human resource capital.
(iii) Second Largest English speaking, scientific & technical manpower in the
(iv) Vast pool of existing and ongoing scientific and technical research carried by
large number of research laboratories.
(v) Initiatives taken by the Government in formulating policies to encourage
investors and entrepreneurs.
(vi) Initiatives of the SEBI to develop a strong and vibrant capital market giving the
adequate liquidity and flexibility for investors for entry and exit.
REASONS FOR GROWTH OF VENTURE CAPITAL
INVESTMENT IN INDIA
• IT and IT-enabled services
• Software Products (Mainly Enterprise-focused)
• PSU Disinvestments
• Bio Technology/Bio Informatics
• Electronic Manufacturing
The world is becoming increasingly
Companies are required to be super efficient
with respect to cost, productivity, labor
efficiency, technical back up, flexibility to
consumer demand, adaptability and
There is an impending demand for highly cost
effective, quality products
There are large sectors of the economy that are
ripe for VC investors ,like,. I.T., Pharmacy,
Manufacturing. Telecom, Retail franchises, food
processing and many more.
inspite of the existing shortcomings in the
Looking ahead for a bright future for