1. TOPIC:- VENTURE CAPITAL
PROF. DEBJANI SINGHA
Chetana Hazarimal Somani College Of
COM. & Eco. & Smt. Kusumtai
Chaudhari College Of Arts
2. Group Members
Name Roll No.
Megha Gosavi 214
Anil Jain 217
Neha Panchal 224
Yogesh Raut 232
Heena Tiwadekar 244
Origin And Development
Features Of a VC Firm
Eligibility To Seek Venture Capital Funding
Steps In Seeking Venture Capital
The Venture Capital Investment Process
4. Agenda continue………
Venture Capital Regulation In India
Venture Capital Fund In India
Advantages Of Venture Capital
Methods Of Venture Financing
5. Concept Of Venture Capital
Venture capital is the capital invested in a business
where the chances of success are uncertain.
It is term to describe the financing of startup and
early stage business as well as businesses in “ turn
Venture capitalist is a person who make such
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
7. Origin And Development Of Venture Capital
VC concept is a US origin concept.
Organized VC fund was started in 1946 when
American research and development corporation
(ARD), a publicly traded, closed-end investment
company was formed.
In 1958 for computer maker digital equipment corp
was provided with start-up financing by ARD.
ARD was eventually profitable, providing its original
investors with a 15.8% annual rate of return over its
25 year as an independent firm
8. Features Of Venture Capital
Venture capital is usually in the form of equity or mix
of equity debt.
Commercial success of funded venture is not tested
and hence VC is a risk investment.
If successful, VCs can get extraordinary returns.
VC is not just a fund provider but also is involved in
managing the envisaged growth of the firm.
VC are interested in capital gains and cash gains.
9. Stages of venture capital
Stage Capital Concept Purpose
Concept & Idea development stage Seed Capital For product development and pilot
plant. Commercial possibilities are
tested at this stage.
Implementation Start-up finance For commercial plant development
and full fledged operations roll-out.
Expansion Growth Capital To scale up operations. At this stage
product is almost a tested success in
Struggling and loss making Turn around financing Business process re-engineering,
Stop-gap or intermediate stage Mezzanine financing Urgent need before completing
formalities of public issue, term loan
10. Features Of a VC Firm
Investment in high-risk, high-returns ventures
Participation in management
Raises fund from several sources
Diversification of the portfolio
Exit after specified time
11. Eligibility To Seek Venture Capital Funding
Strength and motivation of management teams
Clarity on product development strategies
Carefully defined target markets with possibility to
scale-up in a big way
Innovation quotient in proposed product or idea
12. Indian Scenario
In 1973 a committee on development of small and
medium enterprises highlighted the need to foster
venture capital as a source of funding new
entrepreneurs and technology.
Government of India and guideline for venture
capital funds were formulated in 1988.
13. Venture Capital Regulation In India
SEBI (VC funds) regulation,1996 are:-
Any company or trust or a foreign VC fund to carry on
any activity as a venture capital fund should apply to
The venture capital fund shall not carry any other activity
other than that of a venture capital fund.
Minimum sum acceptable by VC fund from any investor
is RS. 5 lakh.
Venture capital fund should not invest more than 25%
corpus of the fund in one venture.
VC should not invest in the associated companies.
14. Venture Capital Fund In India
ICICI venture funds management company limited
IFCI venture capital funds ltd
SIDBI venture capital limited
IL&FS group businesses
Gujarat venture finance ltd
15. Advantages Of Venture Capital
To VC Fund investors
To Enterprises seeking VC funding
16. Methods Of Venture Financing
Other Financing Methods