This document provides an overview of venture capital. It defines venture capital as long-term risk capital used to finance high-growth potential startups and small businesses. Key points include that venture capital investments are long-term, lack liquidity, and carry high risks but also high potential returns. The document discusses advantages like bringing capital and expertise to companies, as well as disadvantages such as loss of founder autonomy. Top cities attracting venture capital in India are listed as Mumbai, Bangalore, Delhi, Chennai, and Hyderabad. The information technology sector captures the largest share of venture capital funding in India.

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