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Venture capital debabrata


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Venture capital debabrata

  2. 2.  Venture Capital/Private Equity; provides long- term, committed share capital, to help unquoted companies grow and succeed. If you are looking to start up, expand, buy into a business, buy out a division of your parent company, turnaround or revitalise a company, Private Equity could help.
  3. 3. Venture capital comes from Institutional investor and High net worth individuals or families and is pooled by dedicated firms A venture capitalist is a person or institutional firm that makes venture investment and these venture capitalist are expected to bring managerial and technical expertise as well as capital to their investment WHO ARE VENTURE CAPITALIST
  4. 4. Who can avail venture Capital? Generally Venture capitalist firm invest in high technology industries such as biotechnology and IT (Information Technology). •QUALIFICATIONS: •Should be a Technology Company. •Can you be a market leader. •Will it be cheap to make this company. •Clear distribution channel. •Can the company go public or Acquired.
  5. 5. WHY VENTURE CAPITAL? Firms opt for venture capital even though the cost of acquiring is higher because it will be difficult for new and budding firms to acquire loans from banks or raise capital from public
  6. 6. 1.Half-baked business plans. 2. Focusing too much on the idea and too little on the management 3. Not asking for enough money 4. Having too many lenders or investors 5. Failing to get the proper legal agreements 6. Poor cash flow management 6 ‘ biggest mistakes in raising start up Capital?
  7. 7.  Infrastructure  Intel, Cisco, 3Com, Juniper, Apple, EMC, Sun, Wind River  Software  ORCL, MSFT, SEBL, EA, Lotus, Kana, Omniture, Sybase  Internet  GOOG, YHOO, Ebay, AOL, Skype, Netscape, AMZN, Youtube…  Healthcare  Genentech, Amgen, Alza, Affymetrix  Services  Fedex, Staples  VCs partner with entrepreneurs to build the companies of tomorrow
  8. 8.  Submit business plan  Preliminary assessment  Meet the people  Light due diligence  Term sheet  Heavy due diligence  Investment memorandum  Commitment letter  Shareholder’s agreement  Grow the company  Exit
  9. 9. VENTURE CAPITAL IN INDIA With the advent of liberalization, India has been showing remarkable growth in the economy in the past 10 - 12 years. The venture capital industry in India has grown dramatically in the last few years, even boasting its own ‘Silicon Valley' in the form of Bangalore.
  10. 10. (i) Existence of a globally competitive high technology. (ii) Globally competitive human resource capital. (iii) Second Largest English speaking, scientific & technical manpower in the world. (iv) Vast pool of existing and ongoing scientific and technical research carried by large number of research laboratories. (v) Initiatives taken by the Government in formulating policies to encourage investors and entrepreneurs. (vi) Initiatives of the SEBI to develop a strong and vibrant capital market giving the adequate liquidity and flexibility for investors for entry and exit. REASONS FOR GROWTH OF VENTURE CAPITAL INVESTMENT IN INDIA
  11. 11. • IT and IT-enabled services • Software Products (Mainly Enterprise-focused) • Wireless/Telecom/Semiconductor • Banking • PSU Disinvestments •Media/Entertainment • Bio Technology/Bio Informatics • Pharmaceuticals • Electronic Manufacturing • Retail
  12. 12.  The world is becoming increasingly competitive  Companies are required to be super efficient with respect to cost, productivity, labor efficiency, technical back up, flexibility to consumer demand, adaptability and foresightedness.  There is an impending demand for highly cost effective, quality products
  13. 13.  There are large sectors of the economy that are ripe for VC investors ,like,. I.T., Pharmacy, Manufacturing. Telecom, Retail franchises, food processing and many more.  inspite of the existing shortcomings in the Indian infrastructure.  Looking ahead for a bright future for India Inc.