What is venture capital by Gaurav Saraf

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This deck was presented by Gaurav Saraf (Epipheny Ventures) at the TiE Investor Forum in My 2011.

Published in: Economy & Finance, Business
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What is venture capital by Gaurav Saraf

  1. 1. Epiphany Ventures TIE Venture Capital Session, May 21 st , 2011 What is Venture Capital?
  2. 2. <ul><li>Literal translation - “money for business” </li></ul><ul><li>High risk capital </li></ul><ul><li>Targeted towards high growth businesses </li></ul><ul><li>Long investment horizons, varying from 3-7 years </li></ul><ul><li>Most commonly invested by way of equity, occasionally, as debt </li></ul><ul><li>Glamorized by success of Google, PayPal, eBay etc </li></ul>Venture Capital: Definition What is Venture Capital? Google is one of the world’s most successful early stage investments, netting its angel investors more than 1000x return!
  3. 3. Stages of Venture Capital <ul><li>Riskiest stage of investment where business may be: </li></ul><ul><ul><li>Not much more than a business plan </li></ul></ul><ul><ul><li>Pre-revenue </li></ul></ul><ul><li>Typical investment size varies from $100,000 to $1 million </li></ul><ul><li>Most dilutive to Promoters </li></ul>Seed/Angel <ul><li>At this stage the business will typically have: </li></ul><ul><ul><li>Proof of concept </li></ul></ul><ul><ul><li>Qualified sales pipeline </li></ul></ul><ul><ul><li>Revenues varying from $100,000 to $2-3 million </li></ul></ul><ul><li>Typical investment size is $500,000 to $3 million </li></ul>Early Growth <ul><li>Growth stage business usually have: </li></ul><ul><ul><li>Strong management in place </li></ul></ul><ul><ul><li>Revenue growth momentum </li></ul></ul><ul><ul><li>Revenues varying from $5-10 million </li></ul></ul><ul><li>Investments range from $5 to $20 million </li></ul>

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