The document discusses venture capital (VC) investment in India. It provides definitions of venture capital as risk capital that finances high-growth startups and small businesses. It outlines how VC emerged in the 1920s-30s and has evolved over time. It describes how VC works, including deal origination/screening, due diligence, structuring investments, and exiting investments. It also compares VC to traditional capital and discusses the VC industry in India, including prominent VC funds and how it is regulated by SEBI and governed by tax laws.
Venture capital involves investing in young, growing companies that have potential for significant growth. Venture capitalists provide funding to startups and small businesses in exchange for equity, and also offer business guidance and networking support. In India, venture capital is regulated by SEBI and provided by various government and private funds to support entrepreneurship across high-growth sectors like IT, biotechnology, manufacturing and energy. Common exit strategies for venture capitalists include IPOs or acquisitions of portfolio companies.
It help you to become a successful entrepreneur,advantages& risk associated with that. And also helps finance you business successfully in different stages.
Venture capital involves funds provided to startup companies and small businesses with exceptional growth potential. Venture capitalists invest in young companies and assist with management, networking, and preparing companies for public offerings or acquisition. In India, venture capital is regulated by SEBI and income tax laws, which provide tax exemptions to venture funds. The venture capital industry can support innovation and entrepreneurship in India by helping small businesses access financing.
Meaning
characteristics
Advantage
Stages of financing
risk in each stage
Method of venture financing
Development of venture capital in india
Rules and regulation
critical factor for the success of VC
Liabilities of Directors under the Companies Act of IndiaAnil Chawla
This Presentation gives the liabilities (punishments, penalties etc) that a Director of an Indian company faces when the company defaults under the Companies Act 2013 (As amended by The Companies Amendment Act, 2020).
Venture capital in India is a big action by the Indian government in the term of industry development. Venture capital having more problem and also denoted what will be scenario of Venture capital in future !!
This document discusses alternative investment funds (AIFs) in India. It defines AIFs as non-traditional investments that are established in India as trusts, companies, LLPs or bodies corporate. AIFs have limited regulations and liquidity. They are governed by SEBI regulations and categorized as Category I, II or III funds. Category I includes venture capital funds while Category II includes other funds without leverage. The document outlines the tax treatment for AIFs, providing pass-through status for Category I and II funds but still taxing business income at individual rates. It summarizes the current tax dichotomy around partial pass-through for AIFs.
Venture capital involves investing in young, growing companies that have potential for significant growth. Venture capitalists provide funding to startups and small businesses in exchange for equity, and also offer business guidance and networking support. In India, venture capital is regulated by SEBI and provided by various government and private funds to support entrepreneurship across high-growth sectors like IT, biotechnology, manufacturing and energy. Common exit strategies for venture capitalists include IPOs or acquisitions of portfolio companies.
It help you to become a successful entrepreneur,advantages& risk associated with that. And also helps finance you business successfully in different stages.
Venture capital involves funds provided to startup companies and small businesses with exceptional growth potential. Venture capitalists invest in young companies and assist with management, networking, and preparing companies for public offerings or acquisition. In India, venture capital is regulated by SEBI and income tax laws, which provide tax exemptions to venture funds. The venture capital industry can support innovation and entrepreneurship in India by helping small businesses access financing.
Meaning
characteristics
Advantage
Stages of financing
risk in each stage
Method of venture financing
Development of venture capital in india
Rules and regulation
critical factor for the success of VC
Liabilities of Directors under the Companies Act of IndiaAnil Chawla
This Presentation gives the liabilities (punishments, penalties etc) that a Director of an Indian company faces when the company defaults under the Companies Act 2013 (As amended by The Companies Amendment Act, 2020).
Venture capital in India is a big action by the Indian government in the term of industry development. Venture capital having more problem and also denoted what will be scenario of Venture capital in future !!
This document discusses alternative investment funds (AIFs) in India. It defines AIFs as non-traditional investments that are established in India as trusts, companies, LLPs or bodies corporate. AIFs have limited regulations and liquidity. They are governed by SEBI regulations and categorized as Category I, II or III funds. Category I includes venture capital funds while Category II includes other funds without leverage. The document outlines the tax treatment for AIFs, providing pass-through status for Category I and II funds but still taxing business income at individual rates. It summarizes the current tax dichotomy around partial pass-through for AIFs.
This document discusses the role of SEBI in protecting investors in India. It analyzes SEBI's guidelines and mechanisms for curbing improper market activities. It examines several major financial scams in India and how SEBI responded to enhance protections. It concludes that while not perfect, SEBI has been largely successful in its mission to protect investors through various regulations. Suggestions are made to strengthen SEBI's coordination with other authorities and empower it further.
Venture capital involves providing private equity funding to growth-stage companies, typically in exchange for ownership stakes. It began in 1946 with the founding of the first venture capital firm, American Research and Development. Venture capitalists provide startups with cash funding as well as business support through networking, management advice, and marketing assistance. Their goal is to help companies grow rapidly to achieve high returns for both the startup and the venture capitalist investors.
This document provides an overview of venture capital, including its meaning, characteristics, advantages, stages of financing, investment process, development in India, and rules and regulations. It defines venture capital as funds made available for startups and small businesses with high growth potential. Key points include: venture capitalists provide long-term equity financing and business assistance in exchange for equity; the investment process involves deal origination, screening, due diligence, structuring, and exit; and venture capital in India is regulated by SEBI and income tax acts which provide tax exemptions.
A profile of venture capital in india b.v.raghunandanSVS College
1) Venture capital is a form of financing provided to early-stage, high-potential, and high-risk startups. It involves taking equity stakes and sometimes participating in management.
2) Venture capital funding is typically directed towards new companies, turnaround companies, and projects in high growth industries and sectors involving new technology. It carries high risk but also aims to generate high returns.
3) Venture capitalists typically take board seats and work closely with management over a long-term period of 5-7 years, helping with strategy and operations before exiting their investment through an IPO or acquisition.
Venture capital involves investing in young, growing companies with potential for significant growth. It provides long-term funding through purchasing equity shares. Venture capitalists assist companies in areas like product development, networking, and preparing for IPOs or acquisitions. India's venture capital industry is regulated by SEBI and governed by tax rules. It focuses on sectors like software, biotech and clean energy and cities like Bengaluru, Mumbai and Delhi. Success requires a supportive regulatory environment, adequate exit options for investors, and infrastructure like incubators.
The document summarizes the key recommendations from a report by the K.B. Chandrasekhar Committee on Venture Capital in India. The committee recommended harmonizing regulations under a single regulator to simplify compliance. It also recommended providing tax pass-through status for venture capital funds and allowing foreign venture capital investors to register with SEBI for hassle-free investments. The recommendations aim to develop a supportive regulatory environment to boost venture capital activity and foster innovation in India.
Venture Capital Funding: An Insider’s ViewMilliporeSigma
Our Life Science business is fully dedicated to supporting small, biotech companies with cutting edge technologies. Besides technical aspects of molecule development and production, fundraising is omnipresent. This webinar will provide insights and perspectives from Merck Ventures, BV, a subsidiary of
Merck KGaA, Darmstadt, Germany.
At Merck Ventures, BV, a subsidiary of Merck KGaA, Darmstadt, Germany, the strategic corporate venture capital arm of Merck KGaA, Darmstadt Germany, we drive innovation and back entrepreneurs through equity investments and hands-on support. We focus on areas that impact the vitality and sustainability of our current and future businesses.
This webinar will provide you with the ABCs of venture capital including:
• How venture capital works
• The role of a corporate venture capital
• How we look at opportunities
Edelweiss Prime Brokerage Services provides an integrated suite of services for asset managers, including fund setup advisory, securities custody and clearing, fund accounting, research and execution services. The document describes Edelweiss' offerings for alternative investment funds, which include fund registration assistance, custodial services, research coverage of over 500 companies, and investor management services like drawdown tracking and statements. Edelweiss aims to be a one-stop-shop for asset managers seeking support across the lifecycle of their funds.
How to Structure a Venture Capital Fund by Himanshu MandaviaStartupCentral
This document discusses structuring and regulations for venture capital funds in India. It outlines typical fund structures involving investors, a pooling vehicle like an AMC, and target companies. It also summarizes the key Alternative Investment Fund (AIF) regulations introduced by SEBI in 2012, including the three categories of AIFs and conditions applying to all AIFs like minimum corpus, maximum investors, and sponsor contribution. The document also discusses foreign investment in the domestic pooling vehicles, noting that FIPB approval is not required if set up as a Category I AIF company but is required for trusts or other AIF categories.
Article on Foreign Venture capital Investor :- CA. Sudha G. BhushanTAXPERT PROFESSIONALS
The document discusses foreign venture capital investors (FVCIs) in India. It defines an FVCI as an investor incorporated outside of India that proposes to invest in Indian venture capital funds or ventures. It notes that FVCIs help fill the gap between startup funding needs and traditional bank lending. The regulatory framework for FVCIs in India, including RBI and SEBI regulations, is also summarized to provide context around their role in India.
Research Project Report on Growth of Venture Capital Finance in India and Rol...Piyush Gupta
The research project report “Growth of Venture Capital Finance in India and role of Business Confidence Index” is undertaken as a part of MBA curriculum at Kurukshetra University. Venture Capital Finance is a mode of financing a high risk and new business ventures and is no more in the dormant stage in India.
The academic research study has been undertaken in order to know the current scenario of venture capital finance in India and to predict it near future rate of growth. The report also lookouts for market share of different economic sectors in terms of Venture Capital Investments and analyses growth of venture capital investment in these sectors.
The research project report further analyse whether values of Business Confidence Index can predict growth rate of Venture Capital Investments. For this reason Business Confidence Index by Confederation of Indian Industry (CII) has been used.
The report starts with Introduction to the topic i.e. Venture Capital Financing. It then throws light of this Industry in India. The report than provides objectives of this project, reviews of literature done and Research methodology used. It then provides details of Analysis and Interpretation followed by findings and conclusion.
What is venture capital & venture capital in indiaSandeep Mane
Venture capital is money provided to startup companies and small businesses for long-term growth potential. It features a long investment time horizon, lack of liquidity, high risk, focus on high-tech industries, and equity participation. Advantages include access to large funds and expertise, while disadvantages include loss of founder autonomy and complex legal processes. Venture capital in India is provided through various public and private sector funds and regulated by SEBI. Key sectors attracting venture capital include IT, energy, manufacturing, and media/entertainment. Cities like Mumbai, Bangalore, Delhi, Chennai, Hyderabad, and Pune are major hubs for venture capital investment in India.
This document provides an overview of investment fund structures in India and compliance requirements. It discusses various types of fund vehicles like offshore and onshore funds. It also covers key areas like choice of fund jurisdiction, documentation requirements, registration and approvals with Indian regulators, ongoing compliance, and certification needs. The presentation further elaborates on topics like different types of investors in India, tax implications, and investment structures for foreign venture capital investors.
Private Equity and Venture Capital in IndiaPramod Jadhav
The document provides an overview of private equity and venture capital in India. It discusses the history of venture capital in India dating back to the early 1970s. It also outlines the growth of the venture capital industry in India, including key developments such as the establishment of guidelines to regulate the industry in 1996 and the focus on the IT sector after the 1997 IT boom. More recently, the recession during 1999-2001 impacted the venture capital industry in India.
An NBFC is a non-banking financial company registered under the Companies Act of 1956 that is engaged in financial activities like lending, investment, and acquisition but not banking. There are different types of NBFCs including asset finance companies, investment companies, loan companies, infrastructure finance companies, and NBFC factors. Some of the largest NBFCs in India are HDFC, Power Finance Corporation, Reliance Capital, Infrastructure Development Finance Co, and Rural Electricity Corp.
This document provides information on non-banking finance companies (NBFCs) in India, including their classification and types. It discusses how NBFCs are classified into different categories based on whether they accept public deposits and their principal business activities. Some key NBFC categories mentioned include asset finance companies, investment companies, loan companies, infrastructure finance companies, and microfinance institutions. The document also briefly outlines the regulations for mutual benefit finance companies and the leasing and hire purchase services that can be provided by NBFCs.
This document provides an overview of a State Financial Corporation (SFC) in India. It discusses the organization's profile, activities, forms of assistance provided, and achievements. SFCs were established by state governments to provide medium and long-term financing to industrial projects. They mobilize funds through various sources and offer both direct assistance like term loans and indirect assistance like guarantees. The document outlines the SFC's role in promoting small and medium enterprises through financial support.
Venture capital refers to funding provided to startup companies and small businesses with exceptional growth potential. It can help innovative entrepreneurship in India grow. Venture capital investment involves high risk but also potential for high returns. Historically, wealthy families and individual investors provided early startup funding but now venture capital comes from pooled investment funds. Venture capitalists provide not just funding but also business advice and access to their networks to help companies succeed and eventually achieve an initial public offering. Government policies in India aim to encourage venture capital activity to fuel innovation and economic growth.
Venture capital involves providing long-term funding for startup companies and small businesses with high growth potential. It typically involves private equity investments and carries high risk but also high potential returns. Venture capital funds are established to raise money through various means and make investments according to regulations. While venture capital can provide large sums of financing for new companies, the process is complex and investors take an ownership stake, imposing some loss of founder autonomy. Top cities attracting venture capital in India include Mumbai, Bangalore, Delhi, and Hyderabad in sectors like IT, biotechnology, and financial services. Remedies to improve venture capital access include reducing regulations, improving management skills, and increasing market and infrastructure facilities.
This document discusses the role of SEBI in protecting investors in India. It analyzes SEBI's guidelines and mechanisms for curbing improper market activities. It examines several major financial scams in India and how SEBI responded to enhance protections. It concludes that while not perfect, SEBI has been largely successful in its mission to protect investors through various regulations. Suggestions are made to strengthen SEBI's coordination with other authorities and empower it further.
Venture capital involves providing private equity funding to growth-stage companies, typically in exchange for ownership stakes. It began in 1946 with the founding of the first venture capital firm, American Research and Development. Venture capitalists provide startups with cash funding as well as business support through networking, management advice, and marketing assistance. Their goal is to help companies grow rapidly to achieve high returns for both the startup and the venture capitalist investors.
This document provides an overview of venture capital, including its meaning, characteristics, advantages, stages of financing, investment process, development in India, and rules and regulations. It defines venture capital as funds made available for startups and small businesses with high growth potential. Key points include: venture capitalists provide long-term equity financing and business assistance in exchange for equity; the investment process involves deal origination, screening, due diligence, structuring, and exit; and venture capital in India is regulated by SEBI and income tax acts which provide tax exemptions.
A profile of venture capital in india b.v.raghunandanSVS College
1) Venture capital is a form of financing provided to early-stage, high-potential, and high-risk startups. It involves taking equity stakes and sometimes participating in management.
2) Venture capital funding is typically directed towards new companies, turnaround companies, and projects in high growth industries and sectors involving new technology. It carries high risk but also aims to generate high returns.
3) Venture capitalists typically take board seats and work closely with management over a long-term period of 5-7 years, helping with strategy and operations before exiting their investment through an IPO or acquisition.
Venture capital involves investing in young, growing companies with potential for significant growth. It provides long-term funding through purchasing equity shares. Venture capitalists assist companies in areas like product development, networking, and preparing for IPOs or acquisitions. India's venture capital industry is regulated by SEBI and governed by tax rules. It focuses on sectors like software, biotech and clean energy and cities like Bengaluru, Mumbai and Delhi. Success requires a supportive regulatory environment, adequate exit options for investors, and infrastructure like incubators.
The document summarizes the key recommendations from a report by the K.B. Chandrasekhar Committee on Venture Capital in India. The committee recommended harmonizing regulations under a single regulator to simplify compliance. It also recommended providing tax pass-through status for venture capital funds and allowing foreign venture capital investors to register with SEBI for hassle-free investments. The recommendations aim to develop a supportive regulatory environment to boost venture capital activity and foster innovation in India.
Venture Capital Funding: An Insider’s ViewMilliporeSigma
Our Life Science business is fully dedicated to supporting small, biotech companies with cutting edge technologies. Besides technical aspects of molecule development and production, fundraising is omnipresent. This webinar will provide insights and perspectives from Merck Ventures, BV, a subsidiary of
Merck KGaA, Darmstadt, Germany.
At Merck Ventures, BV, a subsidiary of Merck KGaA, Darmstadt, Germany, the strategic corporate venture capital arm of Merck KGaA, Darmstadt Germany, we drive innovation and back entrepreneurs through equity investments and hands-on support. We focus on areas that impact the vitality and sustainability of our current and future businesses.
This webinar will provide you with the ABCs of venture capital including:
• How venture capital works
• The role of a corporate venture capital
• How we look at opportunities
Edelweiss Prime Brokerage Services provides an integrated suite of services for asset managers, including fund setup advisory, securities custody and clearing, fund accounting, research and execution services. The document describes Edelweiss' offerings for alternative investment funds, which include fund registration assistance, custodial services, research coverage of over 500 companies, and investor management services like drawdown tracking and statements. Edelweiss aims to be a one-stop-shop for asset managers seeking support across the lifecycle of their funds.
How to Structure a Venture Capital Fund by Himanshu MandaviaStartupCentral
This document discusses structuring and regulations for venture capital funds in India. It outlines typical fund structures involving investors, a pooling vehicle like an AMC, and target companies. It also summarizes the key Alternative Investment Fund (AIF) regulations introduced by SEBI in 2012, including the three categories of AIFs and conditions applying to all AIFs like minimum corpus, maximum investors, and sponsor contribution. The document also discusses foreign investment in the domestic pooling vehicles, noting that FIPB approval is not required if set up as a Category I AIF company but is required for trusts or other AIF categories.
Article on Foreign Venture capital Investor :- CA. Sudha G. BhushanTAXPERT PROFESSIONALS
The document discusses foreign venture capital investors (FVCIs) in India. It defines an FVCI as an investor incorporated outside of India that proposes to invest in Indian venture capital funds or ventures. It notes that FVCIs help fill the gap between startup funding needs and traditional bank lending. The regulatory framework for FVCIs in India, including RBI and SEBI regulations, is also summarized to provide context around their role in India.
Research Project Report on Growth of Venture Capital Finance in India and Rol...Piyush Gupta
The research project report “Growth of Venture Capital Finance in India and role of Business Confidence Index” is undertaken as a part of MBA curriculum at Kurukshetra University. Venture Capital Finance is a mode of financing a high risk and new business ventures and is no more in the dormant stage in India.
The academic research study has been undertaken in order to know the current scenario of venture capital finance in India and to predict it near future rate of growth. The report also lookouts for market share of different economic sectors in terms of Venture Capital Investments and analyses growth of venture capital investment in these sectors.
The research project report further analyse whether values of Business Confidence Index can predict growth rate of Venture Capital Investments. For this reason Business Confidence Index by Confederation of Indian Industry (CII) has been used.
The report starts with Introduction to the topic i.e. Venture Capital Financing. It then throws light of this Industry in India. The report than provides objectives of this project, reviews of literature done and Research methodology used. It then provides details of Analysis and Interpretation followed by findings and conclusion.
What is venture capital & venture capital in indiaSandeep Mane
Venture capital is money provided to startup companies and small businesses for long-term growth potential. It features a long investment time horizon, lack of liquidity, high risk, focus on high-tech industries, and equity participation. Advantages include access to large funds and expertise, while disadvantages include loss of founder autonomy and complex legal processes. Venture capital in India is provided through various public and private sector funds and regulated by SEBI. Key sectors attracting venture capital include IT, energy, manufacturing, and media/entertainment. Cities like Mumbai, Bangalore, Delhi, Chennai, Hyderabad, and Pune are major hubs for venture capital investment in India.
This document provides an overview of investment fund structures in India and compliance requirements. It discusses various types of fund vehicles like offshore and onshore funds. It also covers key areas like choice of fund jurisdiction, documentation requirements, registration and approvals with Indian regulators, ongoing compliance, and certification needs. The presentation further elaborates on topics like different types of investors in India, tax implications, and investment structures for foreign venture capital investors.
Private Equity and Venture Capital in IndiaPramod Jadhav
The document provides an overview of private equity and venture capital in India. It discusses the history of venture capital in India dating back to the early 1970s. It also outlines the growth of the venture capital industry in India, including key developments such as the establishment of guidelines to regulate the industry in 1996 and the focus on the IT sector after the 1997 IT boom. More recently, the recession during 1999-2001 impacted the venture capital industry in India.
An NBFC is a non-banking financial company registered under the Companies Act of 1956 that is engaged in financial activities like lending, investment, and acquisition but not banking. There are different types of NBFCs including asset finance companies, investment companies, loan companies, infrastructure finance companies, and NBFC factors. Some of the largest NBFCs in India are HDFC, Power Finance Corporation, Reliance Capital, Infrastructure Development Finance Co, and Rural Electricity Corp.
This document provides information on non-banking finance companies (NBFCs) in India, including their classification and types. It discusses how NBFCs are classified into different categories based on whether they accept public deposits and their principal business activities. Some key NBFC categories mentioned include asset finance companies, investment companies, loan companies, infrastructure finance companies, and microfinance institutions. The document also briefly outlines the regulations for mutual benefit finance companies and the leasing and hire purchase services that can be provided by NBFCs.
This document provides an overview of a State Financial Corporation (SFC) in India. It discusses the organization's profile, activities, forms of assistance provided, and achievements. SFCs were established by state governments to provide medium and long-term financing to industrial projects. They mobilize funds through various sources and offer both direct assistance like term loans and indirect assistance like guarantees. The document outlines the SFC's role in promoting small and medium enterprises through financial support.
Venture capital refers to funding provided to startup companies and small businesses with exceptional growth potential. It can help innovative entrepreneurship in India grow. Venture capital investment involves high risk but also potential for high returns. Historically, wealthy families and individual investors provided early startup funding but now venture capital comes from pooled investment funds. Venture capitalists provide not just funding but also business advice and access to their networks to help companies succeed and eventually achieve an initial public offering. Government policies in India aim to encourage venture capital activity to fuel innovation and economic growth.
Venture capital involves providing long-term funding for startup companies and small businesses with high growth potential. It typically involves private equity investments and carries high risk but also high potential returns. Venture capital funds are established to raise money through various means and make investments according to regulations. While venture capital can provide large sums of financing for new companies, the process is complex and investors take an ownership stake, imposing some loss of founder autonomy. Top cities attracting venture capital in India include Mumbai, Bangalore, Delhi, and Hyderabad in sectors like IT, biotechnology, and financial services. Remedies to improve venture capital access include reducing regulations, improving management skills, and increasing market and infrastructure facilities.
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.
This document provides an overview of venture capital. It defines venture capital as funds made available for startups and small businesses with exceptional growth potential. Venture capital involves long-term risk capital to finance high-risk projects with strong growth potential. The presentation discusses features of venture capital like long-term investment, lack of liquidity, high risk-return profile, and equity participation. It also outlines advantages like providing large sums of financing and expertise, and disadvantages such as loss of founder autonomy. The top cities attracting VC investments in India are discussed as well as sectors and industry segmentation of VC funding.
Venture capital refers to funding provided to startup companies and small businesses perceived to have long-term growth potential. Venture capitalists invest in these companies and also provide management support. They typically invest in equity securities and assist the growth and development of the company. Venture capital funding comes from investment pools organized as limited partnerships and is a high-risk/high-return asset class focused on startup and growth-stage companies.
The document discusses venture capital, which provides financing to new companies with high growth potential. It defines venture capital and outlines its key features, including supporting entrepreneurial talent, providing management skills, and involving high-risk, high-return financing. The document then details the typical venture capital process of deal origination, screening, evaluation, deal structuring, and various exit options. It also reviews the advantages and disadvantages of venture capital, major venture capital funds in India, and SEBI regulations of venture capital.
Venture capital is a form of financing provided to startup companies and small businesses that are deemed to have high growth potential. It allows entrepreneurs to focus on developing and growing their businesses in the initial phases without having to generate cash flows or profits. Venture capital is typically invested in companies in exchange for equity in the companies. Venture capital funding is available in different stages from seed funding to later expansion stages. While venture capital provides benefits like expertise and funding, it also involves risks and giving up some control for the entrepreneurs. The top industries attracting venture capital in India include IT/ITES, energy, manufacturing, financial services and healthcare. Cities like Mumbai, Bangalore, Delhi, Chennai and Hyderabad attract most of
ICICI Venture Capital provides funding to startup firms and small businesses with high growth potential. It invests in companies through various financing methods like equity, loans, or debentures. ICICI assists portfolio companies in areas like product development, marketing, and preparing for public offerings. Venture capital funding comes with risks but can provide value through management assistance and access to networks. ICICI focuses on industries like IT, energy, manufacturing, and banking in India.
Venture capital refers to risk capital provided to growing companies, usually in the form of equity shares. In India, venture capital primarily focuses on seed funding, high-tech industries, and commercializing research. Several national organizations provide venture funding, including IDBI Venture Fund, ICICI Venture Funds, SIDBI Venture Capital, and IFCI Venture Capital Fund. Eligibility requires innovative projects with potential for high returns. Funding is typically through equity, convertible loans, or debt and investors may participate in management. The goal is to exit investments within 3-5 years through IPOs, strategic sales or buybacks.
The document summarizes the report of the K.B. Chandrasekhar Committee on Venture Capital in India. Some key points:
- Venture capital is important for funding startups and converting ideas into commercial products but the industry is still nascent in India.
- The committee recommends consolidating regulations under SEBI to simplify compliance. It also recommends tax pass-through status for registered venture capital funds.
- To increase funding, it recommends allowing Foreign Venture Capital Investors to invest freely like FIIs and permitting domestic institutional investors like banks and insurance companies to invest in venture funds.
This presentation provides an overview of venture capital, including what it is, its key features and advantages/disadvantages. It also discusses the venture capital investment process, common financing methods, exit routes, major venture capital funds in India and reasons for the growth of venture capital in India. Key sectors and cities attracting venture capital investments are also highlighted.
This presentation provides an overview of venture capital, including what it is, its key features and advantages/disadvantages. It discusses the venture capital investment process and various methods of venture financing. It also outlines the major venture capital funds and players in India as well as the growth of the venture capital industry in the country.
- Development Financial Institutions (DFIs) were established by governments to provide long-term financing for industrial and infrastructure projects due to the risky and long-gestation nature of such projects.
- Over time, as financial systems became more sophisticated in risk management, banks and bond markets became better able to finance such projects, reducing the need for DFIs with government support.
- In India, the first DFI was established in 1948 and many more were set up over the subsequent decades to promote development across various sectors, with some focused on long-term lending and others on refinancing.
Venture capital is financing provided to startup companies and small businesses with exceptional growth potential. Venture capitalists invest in young companies and provide capital and assistance to help them grow and eventually become significant economic contributors. They expect high returns from investing in companies that have potential for growth and an eventual exit through IPO or acquisition. In India, venture capital activity is regulated by SEBI and income tax laws provide tax exemptions to venture capital funds to promote investment in startup companies.
Venture capital is high-risk financing provided to young, growing companies with potential for high growth. It involves equity financing for projects also carrying high risk and reward. Venture capital funds raise money through various means and make long-term, high-risk investments in ventures promoting new technologies or business models. In India, venture capital financing has developed through various specialized financial institutions, state-level funds, public sector banks, and private agencies. It primarily focuses on sectors like IT, biotechnology, and new technologies.
Venture capital involves investing in high-risk, high-return startups and young companies. Venture capital firms invest alongside management and provide expertise. They invest in various sectors like software, biotechnology, clean technology and more. When evaluating potential investments, venture capitalists consider factors like the quality of management, the business plan, growth potential, and exit opportunities. Venture capital has grown significantly in India since the 1980s with more than 150 active funds currently investing across different industries and themes.
The document is a report submitted to Dr. Premraj Alva containing details of a group project. It includes the names and roll numbers of 10 group members and their assigned topics. Abhijeet Sankapal is identified as the group leader. The topics covered in the project are related to venture capital, including its meaning, definition, history, forms, advantages to investors and promoters, stages of financing, and risks associated with venture capital funding.
Venture capital (VC) funds provide financing to young private companies that are not ready or willing to tap public financial markets. VC investments involve high-growth potential businesses with medium- to long-term horizons, high risks and returns, and active post-financing involvement. The VC appraisal process emphasizes management team assessment, strategic strengths, and liquidity potential. Valuation converts projected performance into equity stakes. Deal structuring chooses funding instruments and terms. Post-financing agreements define investor rights and controls. Current concerns in India include competition, valuations, economic uncertainty, contract enforcement, and manager shortages.
This document provides an overview of a presentation on venture capital. It includes definitions of venture capital, the nature and scope of venture capital, regulatory framework, problems with venture capital, the venture capital investment process, the current scenario in India, global experience, and conclusions. The document outlines topics that will be covered in the presentation and provides background information on venture capital concepts.
2. The venture capital investment helps for the
growth of innovative entrepreneurships in
India
Venture capital means risk capital
The risk envisaged may be very high may be
so high as to result in total loss or very less
so as to result in high gains
3. In the 1920’s and 30’s, the wealthy families
of and individual investors provided the
startup money for companies that would later
become famous
Eastern Airlines and Xerox are the more
famous ventures they financed
In its early years VC may have been
associated with high technology, over the
years the concept has undergone a change
and as it stands today it implies pooled
investment in unlisted companies
4. Venture capital means funds made available
for startup firms and small businesses with
exceptional growth potential.
Venture capital is money provided by
professionals who alongside management
invest in young, rapidly growing companies
that have the potential to develop into
significant economic contributors.
5. Investment made in equity, investors wait for
5-7 years to reap the benefits of capital gain
Investments are made in innovative projects
Investors does not interfere in day-to-day
business
Capital need not be repaid in the course of
business but realized through exist route
(stock exchange)
6. It injects long term equity finance which
provides a solid capital base for future growth.
The venture capitalist is a business
partner, sharing both the risks and rewards.
Venture capitalists are rewarded by business
success and the capital gain.
The venture capitalist is able to provide
practical advice and assistance to the company
based on past experience with other companies
which were in similar situations.
7. The venture capitalist also has a network of
contacts in many areas that can add value to the
company.
The venture capitalist may be capable of providing
additional rounds of funding should it be required
to finance growth.
Venture capitalists are experienced in the process
of preparing a company for an initial public
offering (IPO) of its shares onto the stock
exchanges or overseas stock exchange such as
NASDAQ.
They can also facilitate a trade sale.
8. Deal origination
Screening
Due diligence
(Evaluation)
Deal structuring
Post investment activity
Exit plan
9. Venture capital Traditional capital
Less fluid More fluid
Requires high return rate Bears lower return
Invested based on long-run Invested based on
future immediate future
Concerned with product Concerned with past
and market potential performance
Venture capitalist and Loaning bank is creditor
partner are co-workers Requires collateral
10.
11. The concept of venture capital was formally
introduced in India in 1987 by IDBI.
The government levied a 5 per cent cess on
all know-how import payments to create
the venture fund.
ICICI started VC activity in the same year
Later on ICICI floated a separate VC
company - TDICI
12. 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)
13. 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.
3) Those promoted by public banks.
For example:
- Canbank Venture Capital Fund
- SBI Capital Market Ltd
14. 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
16. VCF are regulated by the SEBI (Venture
Capital Fund) Regulations, 1996.
The following are the various provisions:
A venture capital fund may be set up by a
company or a trust, after a certificate of
registration is granted by SEBI on an
application made to it. On receipt of the
certificate of registration, it shall be binding
on the venture capital fund to abide by the
provisions of the SEBI Act, 1992.
17. A VCF may raise money from any
investor, Indian, Non-resident Indian or
foreign, provided the money accepted from
any investor is not less than Rs 5 lakhs. The
VCF shall not issue any document or
advertisement inviting offers from the public
for subscription of its security or units
18. SEBI regulations permit investment by venture
capital funds in equity or equity related
instruments of unlisted companies and also
in financially weak and sick industries whose
shares are listed or unlisted
19. At least 80% of the funds should be invested
in venture capital companies and no other
limits are prescribed.
SEBI Regulations do not provide for any
sectoral restrictions for investment except
investment in companies engaged in financial
services.
20. A VCF is not permitted to invest in the equity
shares of any company or institutions
providing financial services.
The securities or units issued by a venture
capital fund shall not be listed on any
recognized stock exchange till the expiry of 4
years from the date of issuance .
21. A Scheme of VCF set up as a trust shall be
wound up
(a) when the period of the scheme if any, is over
(b) If the trustee are of the opinion that the
winding up shall be in the interest of the
investors
(c) 75% of the investors in the scheme pass a
resolution for winding up or,
(d) If SEBI so directs in the interest of the
investors.
22. The Income Tax Act provides tax
exemptions to the VCFs under Section
10(23FA) subject to compliance with Income
Tax Rules.
Restrict the investment by VCFs only in the
equity of unlisted companies.
VCFs are required to hold investment for a
minimum period of 3 years.
23. The Income Tax Rule until now provided
that VCF shall invest only upto 40% of the
paid-up capital of VCU and also not
beyond 20% of the corpus of the VCF.
After amendment VCF shall invest only
upto 25% of the corpus of the venture
capital fund in a single company.
There are sectoral restrictions under the
Income Tax Guidelines which provide that
a VCF can make investment only in
specified companies.
24. Percentage
9.03 6.94
IT & ITES
3.36 7.73
Energy
Manufacturing
12.92
11.5 Media & Ent.
BFSI
Shipping & logistics
4.32
Eng. & Const.
11.43
Telecom
Health care
4.82
Others
27.95
Percentage calculated on the total VC investment- 14,234 USB (fig. of 2007)
25. CITIES SECTORS
MUMBAI Software services, BPO, Media,
Computer graphics, Animations,
Finance & Banking
BANGALORE All IP led companies, IT & ITES, Bio-
technology
DELHI Software services, ITES , Telecom
CHENNAI IT , Telecom
HYDERABAD IT & ITES, Pharmaceuticals
PUNE Bio-technology, IT , BPO