The document outlines the structure of ownership in various business forms, describing features of sole proprietorships, partnerships, and joint stock companies. It discusses funding types, including equity and debt funding, and highlights the relevance and increasing popularity of venture capital and private equity in financing businesses. Additionally, it touches on the roles of different funding agencies and the stages of financing, as well as the structure and dynamics of private equity partnerships.

1. Venture Capital & Private Equity Department of Business Administration,St.Joseph’s Engineering College, Vamanjoor. April 4, 2008

2. Structure of Ownership Sole-Proprietor-Ownership Not Transferable Partnership-Ownership Not Transferable Joint Stock Company: - Private Limited…Restricted Transferable Ownership - Public Limited….Unrestricted Transferability; Listed Company….Ownership is a Tradeable Commodity

3. Classes of Funding Ownership Funding: Equity Shares, Preference Shares and Reserves Debt Funding: Debentures, Bonds and Long Term Loans

4. Relevance of Debt Funding? Gestation Period Security Related Compulsion of Payment of Interest Compulsory Redemption No Risk Bearing Lesser Importance to Leverage due to Falling Tax Rates Popularity of Zero Debt Capital Structure

5. Beauty of Equity Risk Bearing No Need to Pay Dividend No Redemption No Security To be Offered Wider Knowledge of Working

6. Equity Related Funding Agencies Angel Investors- High Networth Individuals Venture Capital-Partnership With Limited Liability Partners Private Equity-Partnership With Limited Liability Partners

7. Venture Capital: Features Funding Mainly by Subscribing to Equity Shares Evaluation of the Business Idea, more by Intuition than by Standardised Evaluation Techniques Prescribing Performance Benchmarks Right of Management Buyin New High Risk High Growth Industry Exit Schedule

8. Enabling Environment Free Licensing Policy Well Developed Capital Markets New Projects Low Taxation Policy Professional Promoters Risk Funding Culture Enterprise Culture Educational Institutions Absorption of IT Presence of Surplus Funds Opening Up of the Economy

9. Stages of Financing Seed Financing Start-Up Financing First Stage Financing Second Stage Financing Mezzanine Financing Bridge Financing Management Buy-Out Management Buyin Turnaround Financing

10. Venture Capital & Private Equity New Companies V Existing Companies Investment Horizon 7 Years V 5 years Restricted Areas of Operation V Many Areas of Operation Differences Fading Away Private Equity is a Popular Expression

11. Structure of Private Equity Limited Liability Partnership Limited Partners and Unlimited Partners Limited Partners Provide Capital Limited Partners get limited Dividend Limited Partners Have Unlimited Access to Information and a Permanent Office in the Organisation Unlimited Partners manage the Business They get Most of the Profits in the Form of Bonus One is Elected As the Chairman Others may be Managing Directors They also Control the Companies Funded

12. Active Private Equity HSBC Private Equity India Fund Limited Alliance Venture Capital Advisors Ltd JF Electra Advisors India Ltd Draper International Ltd. Temasek New Vernon Texas Pacific Chrys Capital New Bridge General Atlantic Blackstone Underbridge

13. THANK YOU