A Presentation on<br />Venture Capital Funds<br />
Venture Capital – a significant financial innovation <br />                                in the 20th Century<br />“ HIGH...
What is VC?<br />William Davis defines VC as<br /> “ finance for young developing firm in areas of high technology. <br />...
International Finance Corporation defines VC as<br /> ”  an equity or equity-featured capital seeking investment in<br /> ...
Features:<br />Form of Investment:     equity shares in VC unit. <br />                                      convertible b...
5) Long term association: Investment horizon is 5-7 yrs.<br />6) Exit schedule:  VC do not stay invested in a single co <b...
9) Taking control: Mgt Buy In and Mgt Buy Out.<br />10)Dealing with Technocrats: dealing with Technocrats<br />           ...
Factors leading to VC financing:<br />1) Grant of licences<br />2) Well developed capital mkts<br />3) New project availab...
Thank you!!!<br />
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Venture Capital Funds Basic Things

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Venture Capital Funds Basic Things

  1. 1. A Presentation on<br />Venture Capital Funds<br />
  2. 2. Venture Capital – a significant financial innovation <br /> in the 20th Century<br />“ HIGH RISK CAPITAL”<br />
  3. 3. What is VC?<br />William Davis defines VC as<br /> “ finance for young developing firm in areas of high technology. <br /> The basic is simple: find a promising small firm, provide financial <br /> backing and share in its success”<br />
  4. 4. International Finance Corporation defines VC as<br /> ” an equity or equity-featured capital seeking investment in<br /> new companies, new products, new processes or new<br /> service, that offer the potential of high return on investment” <br />They resemble Christopher Columbus who risked his life in<br /> discovering new countries, but aimed at getting<br /> enormous treasure…<br />
  5. 5. Features:<br />Form of Investment: equity shares in VC unit. <br /> convertible bonds, debentures, loans.<br />2) New companies: focus on new companies.<br />3)Turnaround companies: loss making cos may turn out to be<br /> highly profitable.<br />4) High Risk Return Profile: VC dare to invest in highly risky<br /> projects.<br />
  6. 6. 5) Long term association: Investment horizon is 5-7 yrs.<br />6) Exit schedule: VC do not stay invested in a single co <br /> forever.<br />7) Participation in Mgt: not only a fund provider but also a <br /> first class entrepreneur.<br /> Hands on mgt approach –to protect and enhance his <br /> investment.<br />8)Performance Benchmark: VC establish benchmark.<br />
  7. 7. 9) Taking control: Mgt Buy In and Mgt Buy Out.<br />10)Dealing with Technocrats: dealing with Technocrats<br /> whose pockets are empty but have <br /> innovative qualities.<br />
  8. 8. Factors leading to VC financing:<br />1) Grant of licences<br />2) Well developed capital mkts<br />3) New project availability<br />4) Wide tax base<br />5) Vast technical pool<br />6) Enterprising culture<br />
  9. 9. Thank you!!!<br />

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