This document discusses investment selection and fundraising challenges. It compares venture capital, which provides seed funding for new ideas and startups, to private equity, which provides growth funding for more established companies. Venture capital focuses on sales and market share, while private equity focuses on profitability and stability. The document also notes challenges for startups like negative cash flow and profitability. For private equity investors, it lists potential challenges in India including smaller average deal sizes, limited management buyouts, needing to conduct rigorous due diligence on businesses, and adapting to India's mixed business environment.

1. Investment
Selection, Fund
Raising &
Challenges
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14. Venture Capital
• SEED CAPITAL
 Idea
Private Equity
• GROWTH CAPITAL
 Profit
 CAGR
 Stability
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15. Venture Capital
• SEED CAPITAL
 Software
 Technology
 Bio Tech
Private Equity
• GROWTH CAPITAL
 Manufacturing
 Retail
 IT
 FMCG
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16. Venture Capital
 Profit X
 Sales
 Top Line
 Market Share
Private Equity
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 Sales X
 Profit
 Bottom Line
 Profit Share
Sales
Profit

17. Venture Capital
• Fast Growing Company
• Big Valuation
Private Equity
• Risk-No
• Stability
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18. Venture Capital Private Equity
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Investment Value Enhancement
Stake Value Enhancement
Networking with similar people

19. Loan (Debt Financing)
• If Profitability-Yes
• If cash Flow-Yes
Private Equity
• If there is Risk- Yes
• Hand to Hand EMI’s-Yes
• EMI from next day-YEs
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27. Challenges for Start up
• Negative Cash Flow
• Negative Profitability
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28. Challenges
• There would be several challenges to manage in an Indian play .No deal
breakers, but one has to go in with eyes open:
• Deal Size / Flow: Though increasing , the average deal size in India still remains low
and relatively lower than Asian markets as well. Deal flow could be a challenge given
large supply side
• Buyout Scarcity: Large Bo’s will be scare, and heavily competed for . On
the ground presence/ execution experience critical
• MBOs: Still very new & ltd – The Manapreneurs are still in evolutionary
stage. Socio- psychological & structural factors need to change
• Clean Business : Several family owned / professionalizing business are still
cleansing – operational , finance , & legal due diligence has to be rigorous
& robust
• Portfolio Monitoring: Corporate & entrepreneurial culture & processes
are distinct in India and developing the right collaborative approach would
be important
• Mixed Bag Environment
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