Venture capital presentation

1. VENTURE CAPITAL
Presented By
OMKAR A.MORE

2. WELCOME TO VENTURE CAPITAL
PRESENTATION

3. Guide
MS.Chandni.
Presented By:-
OMKAR MORE

4. What is venture capital?
 Venture capital means funds made available
for startup firms and small businesses with
exceptional growth potential.
Venture capital is long
term risk capital to finance
high technology projects
which involve risk but at the
same time has strong
potential for growth.

5. Definition
 The SEBI defined Venture Capital fund in its
regulation 1996 as ‘a fund established in the form
of a company or trust which raises money through
loans, donations, issue of securities or units as the
case may be & makes or proposes to make
investments in accordance with the regulations’.

6. FEATURES OF VENTURE
CAPITAL
 Long term investment:
 Lack of liquidity:
 High risk return:
 Private equity:
 Wide scope:
 Equity participation:

7. ADVANTAGES OF VENTURE CAPITAL
 provide large sum of equity finance.
 Venture Capitalist are rewarded by business
success & the capital gain.
 Able to bring wealth and expertise to your
company
 The Venture Capitalist also has a wide network of
contacts.
 Providing additional funds.

8. DISADVANTAGES OF VC
 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

9. Problems facing by VC
 Requirement of an experienced management team.
 Requirement of an above average rate of return on






investment.
Longer payback period.
Uncertainty regarding the success of the product in
the market.
Questions regarding the infrastructure details of
production.
Skills and Training required.
Time Period.
Interference in Business:

10. Top cities attracting VC investments:
CITIES

SECTORS
Mumbai
Software services, BPO, Media,
Computer graphics, Animations,
Finance & Banking
Bangalore
IT & Bio-technology
Delhi
Software services, Telecom
Chennai
IT , Telecom
Hyderabad
IT & ITES, Pharmaceuticals
Pune
Bio-technology, IT , BPO

11. VC industry wise
segmentation
Percentage
9.03
3.36
6.94
IT & ITES
7.73
Energy
12.92
11.5
Manufacturing
Media & Ent.
BFSI
4.32
11.43
Shipping & logistics
Eng. & Const.
Telecom
Health care
4.82
27.95

12. VENTURE
CAPITAL
FUNDING
IN
INDIA

13. VC funding in India
VCFs in India can be categorized into following five
groups:
1)
Those promoted by the Central Government controlled development
finance institutions. For example:
- ICICI Venture Funds Ltd.
- IFCI Venture Capital Funds Ltd (IVCF)
- SIDBI Venture Capital Ltd (SVCL)
2) Those promoted by State Government controlled development finance
institutions. :-For example:
- Punjab Infotech Venture Fund
- Gujarat Venture Finance Ltd (GVFL)
- Kerala Venture Capital Fund Pvt Ltd.

14. 3) Those promoted by public banks. :- For example:
- Can bank Venture Capital Fund
- SBI Capital Market Ltd
4)Those promoted by private sector companies. :-For example:
- IL&FS Trust Company Ltd
- Infinity Venture India Fund
5)Those established as an overseas venture capital fund. :-For
example:
- Walden International Investment Group
- HSBC Private Equity
- management Mauritius Ltd

15. Remedies taken for VC
 Reduce the rules and regulations of SEBI.
 Investment made on development of management and
employees through training, improving skills.
 Avoid venture capitalist in interference in Business
activity.
 Increasing market facilities.
 Provide more infrastructure facilities.

16. THE END