Startups, quasi capital, venture capital fund (VCF), fund of funds, Regulation & funding, STARTUPS INDIA, Stand Up India, Company Law, LLP Act, MCA, FEMA
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.
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.
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
Employee stock option plans (ESOPs) are used by companies to attract, motivate, and retain employees. There are several types of ESOPs that provide equity incentives like stock options, stock purchase plans, restricted stock units, and stock appreciation rights. Key aspects of ESOPs include how they are granted and vested over time, tax implications, regulatory requirements, and accounting treatment. ESOPs must be implemented according to the rules for listed and unlisted companies set out by the Companies Act, Income Tax Act, SEBI, and other regulatory bodies to ensure proper governance and compliance.
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.
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.
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.
With resolution of Central Government for reforms, transparency and governance in Corporate Sector, sentiments in the Capital Market has turned positive. Companies Act 2013 has also helped in reinstating the confidence of small shareholders in Capital Market.
As the capital market has grown global, it has generated ample need and huge opportunities for pools of ready money for investments in specific sectors. In such a scenario, several new Investor and Market friendly laws like AIF/ REITs and InvIT have been introduced. SEBI has also recently simplified some norms of AIFs. These type of funds will help in rapid development and growth of various sector of the country.
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.
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.
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
Employee stock option plans (ESOPs) are used by companies to attract, motivate, and retain employees. There are several types of ESOPs that provide equity incentives like stock options, stock purchase plans, restricted stock units, and stock appreciation rights. Key aspects of ESOPs include how they are granted and vested over time, tax implications, regulatory requirements, and accounting treatment. ESOPs must be implemented according to the rules for listed and unlisted companies set out by the Companies Act, Income Tax Act, SEBI, and other regulatory bodies to ensure proper governance and compliance.
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.
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.
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.
With resolution of Central Government for reforms, transparency and governance in Corporate Sector, sentiments in the Capital Market has turned positive. Companies Act 2013 has also helped in reinstating the confidence of small shareholders in Capital Market.
As the capital market has grown global, it has generated ample need and huge opportunities for pools of ready money for investments in specific sectors. In such a scenario, several new Investor and Market friendly laws like AIF/ REITs and InvIT have been introduced. SEBI has also recently simplified some norms of AIFs. These type of funds will help in rapid development and growth of various sector of the country.
The document discusses the key steps and considerations for forming a joint venture in India.
1) The joint venture company must be incorporated with regulatory bodies like ROC.
2) Partners will make inter-corporate investments in the joint venture company according to Section 372A of the Companies Act.
3) Various regulatory approvals are required depending on the industry and foreign investment percentage.
4) Important clauses in the joint venture agreement address issues like control, confidentiality, contributions of each partner.
The document provides an overview of the key requirements for a first time issuer of securities conducting an initial public offering (IPO) in India. It discusses the eligibility criteria set by SEBI, including minimum public shareholding, promoters' contribution and lock-in period, pricing considerations, and issue structure. It also outlines the corporate governance requirements, disclosures required in the offer document, and the roles of various intermediaries involved. Special dispensations provided to public sector undertakings conducting an IPO are also highlighted.
An Overview of Venture Capital in India by Dhanpal JhaveriStartupCentral
The document summarizes key topics relating to private capital and venture capital in India. It discusses the evolution of private capital in India from the 1980s onward. It provides data on historical venture capital deal value and volume in India, with 2011 being a record year. The top 5 venture capital deals of 2011 are listed. The rest of the document outlines various aspects of the venture capital process, including the pre-investment and post-investment phases, managing exits, tips for a successful partnership between entrepreneurs and investors, and challenges that can arise.
The document summarizes the key aspects of the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) in the UK. It provides an overview of the tax breaks available to investors, including income tax relief of 30% for EIS and 50% for SEIS, as well as capital gains tax relief. It outlines the main conditions companies must meet to qualify for the schemes, such as investment limits, qualifying trade requirements, and size restrictions. Recent changes to the schemes are also summarized, such as new rules around independent investors and lifetime investment caps. The document concludes with an overview of the application and approval process.
The document discusses IPO grading, which provides an independent assessment of the fundamentals of companies going public. IPO grading analyses a company's business prospects, financial prospects, management quality, and corporate governance. It is mandatory in India for companies filing a draft prospectus to receive an IPO grade from a registered rating agency. The grading process involves collecting information from the issuer and management meetings to assign a grade on a 5-point scale. An example is provided of Central Bank of India receiving a grade of 2/5 for its IPO.
The document discusses preferential allotment of securities under Indian law. It defines preferential allotment as an issue of equity shares, securities convertible to equity, or other instruments like FCDs/warrants/PCDs by a company to select investors through private placement under section 81(1A) of the Companies Act, 1956. It covers topics like pricing of shares under preferential allotment, lock-in periods for allotted shares, limits as per takeover regulations, and procedural requirements under SEBI guidelines.
Technology Initial Public Offerings - Legal and Practical Considerations for ...Now Dentons
Technology IPOs on the TSX
We've translated our IPO guide into Slideshare, to make it easier to review the slides and incorporate them into your own decks. This deck covers:
- advantages and disadvantages of going public
- IPO readiness - step to prepare in the 12 months before an IPO
- which market: TSX or NASDAQ?
- IPO process
- special issues for U.S. companies going public on the TSX
Emerging Sources Of Finance discusses private equity, venture capital, REITs, and InvITs as alternative sources of financing for businesses. Private equity involves investment in private companies, often to support buyouts, while venture capital finances startups and early-stage companies. Both aim for high returns but private equity targets more mature businesses and venture capital backs high-risk, high-growth potential startups. REITs and InvITs allow investment in real estate and infrastructure projects through stock-like instruments, providing income from rents and interest payments. They offer benefits like liquidity, transparency and tax advantages compared to direct real estate and infrastructure investment.
This document discusses venture capital, including its concept, definition, origin, features, stages, eligibility for funding, and the investment process. It provides an overview of venture capital, including that it finances startups and early-stage businesses through high-risk investments. Venture capital funds invest across various stages from seed to growth. The document also summarizes India's venture capital regulation and some major venture capital funds in India. It outlines advantages of venture capital for investors, enterprises, and the economy.
Venture capital fund terms and conditions. Termsheets sample . A fund for SME...Manuel Lacarte
FUND "AAA" INVESTMENTS is a private equity fund established to achieve capital appreciation through investments in European small and medium-sized companies. The fund will be managed by MANAGERS FINCORP and aims to generate higher returns than other assets by investing in companies with growth opportunities. The fund seeks €XX million in commitments from investors and will invest in diversified sectors like healthcare, leisure, and energy. Management fees of 2.5% of committed capital will be charged annually.
It may not be the sexiest topic related to IPO, but it's important not to neglect your equity compensation when you're thinking of going public. The last thing on the list can be the first thing that gets you pinched. Originally presented at Synergy 2014, this deck was developed by experts from four firms (Radford, PwC, Cooley LLP and Solium), and is loaded with indispensable information. Don't go public without it!
The document discusses private equity funding and foreign venture capital investors. It provides an overview of private equity, including forms of private equity funding like angel investors, venture capital, and private equity. It describes the general private equity investment process and discusses valuations, structures and instruments, and exit options. The document also provides regulatory information regarding foreign venture capital investors and different fund structures they can utilize like offshore funds, onshore funds, and co-investment funds.
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.
Explores:
-IPO Process
-Impact of JOBS Act
-Quiet Period
-Management
-Board of Directors
-Corporate Governance
-Corporate and Capital Structure
-Equity Incentives
-Financial and Audit Matters
-Getting Started
-SEC Review
-Life as a Public Company
Venture capital refers to funding provided by private investors or firms to new or growing businesses. Venture capital firms give funding to startups in exchange for equity. They provide strategic advice, help develop business and financing plans, and guide management. Some advantages of venture capital include no fixed repayment schedule and guidance from experienced professionals. However, venture capitalists also gain control over company decisions and expect a return on their investment. Major venture capital firms investing in Indian startups include SAIF Partners, Matrix Venture Partners, and Bessemer Venture Partners.
This document discusses promoters and share capital under Indian company law. It defines promoters as individuals who help establish a company and may act as initial directors. Promoters can be remunerated for pre-incorporation services through a contract. The document also defines types of share capital like equity shares, preference shares, and sweat equity shares. It discusses how companies can raise capital through private placements, public issues, rights issues, and book building. Companies can issue shares at a premium, do bonus issues to capitalize profits, and implement employee stock option schemes. It outlines rules around buybacks of company shares.
Introduction to private equity & venture capitalist fundManish Poddar
Venture capital refers to investments made in startup companies and small businesses with growth potential. Venture capitalists provide funding to companies in exchange for equity and play an active role in monitoring and advising the companies. The document discusses various aspects of venture capital including the types of investors, stages of financing, activities of venture capitalists like investing, monitoring and exiting investments, and key terms in a term sheet like liquidation preferences and founders' shareholding. It provides an overview of how venture capital works and the roles and considerations of venture capitalists and the companies they fund.
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.
The document discusses the key steps and considerations for forming a joint venture in India.
1) The joint venture company must be incorporated with regulatory bodies like ROC.
2) Partners will make inter-corporate investments in the joint venture company according to Section 372A of the Companies Act.
3) Various regulatory approvals are required depending on the industry and foreign investment percentage.
4) Important clauses in the joint venture agreement address issues like control, confidentiality, contributions of each partner.
The document provides an overview of the key requirements for a first time issuer of securities conducting an initial public offering (IPO) in India. It discusses the eligibility criteria set by SEBI, including minimum public shareholding, promoters' contribution and lock-in period, pricing considerations, and issue structure. It also outlines the corporate governance requirements, disclosures required in the offer document, and the roles of various intermediaries involved. Special dispensations provided to public sector undertakings conducting an IPO are also highlighted.
An Overview of Venture Capital in India by Dhanpal JhaveriStartupCentral
The document summarizes key topics relating to private capital and venture capital in India. It discusses the evolution of private capital in India from the 1980s onward. It provides data on historical venture capital deal value and volume in India, with 2011 being a record year. The top 5 venture capital deals of 2011 are listed. The rest of the document outlines various aspects of the venture capital process, including the pre-investment and post-investment phases, managing exits, tips for a successful partnership between entrepreneurs and investors, and challenges that can arise.
The document summarizes the key aspects of the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) in the UK. It provides an overview of the tax breaks available to investors, including income tax relief of 30% for EIS and 50% for SEIS, as well as capital gains tax relief. It outlines the main conditions companies must meet to qualify for the schemes, such as investment limits, qualifying trade requirements, and size restrictions. Recent changes to the schemes are also summarized, such as new rules around independent investors and lifetime investment caps. The document concludes with an overview of the application and approval process.
The document discusses IPO grading, which provides an independent assessment of the fundamentals of companies going public. IPO grading analyses a company's business prospects, financial prospects, management quality, and corporate governance. It is mandatory in India for companies filing a draft prospectus to receive an IPO grade from a registered rating agency. The grading process involves collecting information from the issuer and management meetings to assign a grade on a 5-point scale. An example is provided of Central Bank of India receiving a grade of 2/5 for its IPO.
The document discusses preferential allotment of securities under Indian law. It defines preferential allotment as an issue of equity shares, securities convertible to equity, or other instruments like FCDs/warrants/PCDs by a company to select investors through private placement under section 81(1A) of the Companies Act, 1956. It covers topics like pricing of shares under preferential allotment, lock-in periods for allotted shares, limits as per takeover regulations, and procedural requirements under SEBI guidelines.
Technology Initial Public Offerings - Legal and Practical Considerations for ...Now Dentons
Technology IPOs on the TSX
We've translated our IPO guide into Slideshare, to make it easier to review the slides and incorporate them into your own decks. This deck covers:
- advantages and disadvantages of going public
- IPO readiness - step to prepare in the 12 months before an IPO
- which market: TSX or NASDAQ?
- IPO process
- special issues for U.S. companies going public on the TSX
Emerging Sources Of Finance discusses private equity, venture capital, REITs, and InvITs as alternative sources of financing for businesses. Private equity involves investment in private companies, often to support buyouts, while venture capital finances startups and early-stage companies. Both aim for high returns but private equity targets more mature businesses and venture capital backs high-risk, high-growth potential startups. REITs and InvITs allow investment in real estate and infrastructure projects through stock-like instruments, providing income from rents and interest payments. They offer benefits like liquidity, transparency and tax advantages compared to direct real estate and infrastructure investment.
This document discusses venture capital, including its concept, definition, origin, features, stages, eligibility for funding, and the investment process. It provides an overview of venture capital, including that it finances startups and early-stage businesses through high-risk investments. Venture capital funds invest across various stages from seed to growth. The document also summarizes India's venture capital regulation and some major venture capital funds in India. It outlines advantages of venture capital for investors, enterprises, and the economy.
Venture capital fund terms and conditions. Termsheets sample . A fund for SME...Manuel Lacarte
FUND "AAA" INVESTMENTS is a private equity fund established to achieve capital appreciation through investments in European small and medium-sized companies. The fund will be managed by MANAGERS FINCORP and aims to generate higher returns than other assets by investing in companies with growth opportunities. The fund seeks €XX million in commitments from investors and will invest in diversified sectors like healthcare, leisure, and energy. Management fees of 2.5% of committed capital will be charged annually.
It may not be the sexiest topic related to IPO, but it's important not to neglect your equity compensation when you're thinking of going public. The last thing on the list can be the first thing that gets you pinched. Originally presented at Synergy 2014, this deck was developed by experts from four firms (Radford, PwC, Cooley LLP and Solium), and is loaded with indispensable information. Don't go public without it!
The document discusses private equity funding and foreign venture capital investors. It provides an overview of private equity, including forms of private equity funding like angel investors, venture capital, and private equity. It describes the general private equity investment process and discusses valuations, structures and instruments, and exit options. The document also provides regulatory information regarding foreign venture capital investors and different fund structures they can utilize like offshore funds, onshore funds, and co-investment funds.
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.
Explores:
-IPO Process
-Impact of JOBS Act
-Quiet Period
-Management
-Board of Directors
-Corporate Governance
-Corporate and Capital Structure
-Equity Incentives
-Financial and Audit Matters
-Getting Started
-SEC Review
-Life as a Public Company
Venture capital refers to funding provided by private investors or firms to new or growing businesses. Venture capital firms give funding to startups in exchange for equity. They provide strategic advice, help develop business and financing plans, and guide management. Some advantages of venture capital include no fixed repayment schedule and guidance from experienced professionals. However, venture capitalists also gain control over company decisions and expect a return on their investment. Major venture capital firms investing in Indian startups include SAIF Partners, Matrix Venture Partners, and Bessemer Venture Partners.
This document discusses promoters and share capital under Indian company law. It defines promoters as individuals who help establish a company and may act as initial directors. Promoters can be remunerated for pre-incorporation services through a contract. The document also defines types of share capital like equity shares, preference shares, and sweat equity shares. It discusses how companies can raise capital through private placements, public issues, rights issues, and book building. Companies can issue shares at a premium, do bonus issues to capitalize profits, and implement employee stock option schemes. It outlines rules around buybacks of company shares.
Introduction to private equity & venture capitalist fundManish Poddar
Venture capital refers to investments made in startup companies and small businesses with growth potential. Venture capitalists provide funding to companies in exchange for equity and play an active role in monitoring and advising the companies. The document discusses various aspects of venture capital including the types of investors, stages of financing, activities of venture capitalists like investing, monitoring and exiting investments, and key terms in a term sheet like liquidation preferences and founders' shareholding. It provides an overview of how venture capital works and the roles and considerations of venture capitalists and the companies they fund.
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.
Dividends are payments made to shareholders that are usually paid out of a company's current or retained earnings. Some companies pay dividends while others do not. Companies that pay dividends tend to be larger and more stable businesses with little growth potential. Paying dividends provides current income to investors but also takes away money that could be reinvested in the company. Dividend policies are influenced by legal requirements as well as financial, economic, and market factors.
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.
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.
This ppt was presented at WIRC Annual Regional Conference, 2016 held at Indore. In this presentation, discussion was held mainly in context of how Company Secretaries have contributed to the growth of startups since ages and also dealt with Startup India initiative of the Govt. of India and Key aspects of CSR in context of company secretaries.
The document outlines the Indian government's Startup India initiative to promote entrepreneurship and innovation by defining startups, outlining tax benefits and regulatory relaxations for startups, and describing the various schemes launched by the government including funding support, incubator networks, and simplified compliance processes to support the growth of startups in India. It also describes the services offered by KrayMan Consultants LLP to help startups with legal and regulatory compliances, accounting, financial planning, and other operational needs at different stages of the business.
Talk @NSRCEL - Benefits of MSME & DPIIT registration for startups SharadaSC
This document provides information on startups and MSMEs in India, including definitions, registration processes, and benefits. It defines a startup as a new enterprise working towards innovation or commercialization of new products/services, with turnover less than Rs. 100 crore. Key benefits of registering a startup include tax exemptions, relaxed compliance requirements, and access to funding. MSMEs are defined based on investment and turnover thresholds. Benefits of MSME registration include access to collateral-free loans and priority sector lending. The document also outlines various stimulus packages and policy support for startups and MSMEs during the COVID-19 pandemic.
Orientation Final of Bihar start-up inidatakappvmate
This document provides an overview of starting a new business in Bihar, India. It discusses basics like problem identification, market analysis, ideation, prototyping, feedback loops, minimum viable products, and business plans. It also covers customer acquisition, digital marketing, funding stages, pitch decks, intellectual property, valuation, and unicorns. Additionally, it outlines the differences between traditional businesses and startups. The document reviews business entity types, bank accounts, founder agreements, business insurance, mergers and acquisitions, accounting, auditing, taxation, and important legal requirements. Finally, it lists key financial ratios for businesses to track performance.
This document discusses inbound and outbound investments between India and other countries. It outlines the key regulators for foreign investment in India as the central government and Reserve Bank of India. There are two routes for foreign investment - automatic route requiring no approval, and approval route requiring Foreign Investment Promotion Board approval. Special purpose vehicles are commonly used for structuring investments and considerations for setting them up are discussed. Various funding options like equity, debt, and external commercial borrowings are outlined. The document also covers topics like downstream investments, foreign investment in sectors like trading, and tax implications of different investment structures.
An overview of Start-up ecosystem in India, various legal entities which can be floated. What is Start-up India plan & its benefits? Funding environment in India, Various funding options. How to shutdown/exit your venture?
This document summarizes a presentation on the key aspects of the Companies Act, 2013. It outlines the major changes introduced in the new Act compared to the previous Companies Act of 1956. Some notable changes include a reduction in the number of sections from 658 to 470, the introduction of new types of companies like One Person Companies and Small Companies, increased requirements for director appointments and responsibilities, more stringent compliance requirements, and an increased scope for investor protection.
This document discusses tax planning and exemptions for new startups in India. It outlines that startups recognized by the Department of Industrial Policy and Promotion can receive a full tax deduction on profits for three years within their first ten years of incorporation. It provides details on eligibility criteria for startup recognition and the process for registering on the Startup India portal to apply for tax exemptions under Section 80-IAC of the Income Tax Act.
Joint Venture & Strategic Alliance- hu consultancyHU Consultancy
This document provides an overview of joint ventures and strategic alliances. It defines a joint venture as a business arrangement where two or more parties pool resources to achieve a goal, sharing both risks and rewards. Key objectives of joint ventures include gaining access to new markets, reducing costs, and risk sharing. The document outlines the key differences between equity-based joint ventures, which create a new shared entity, and strategic alliances, which do not share ownership. It provides details on forming a joint venture company, prohibited sectors for foreign investment, and critical factors for a successful joint venture such as trust between partners and clear objectives.
Joint Venture & Strategic Alliance- hu consultancyHU Consultancy
A Joint Venture (JV) is a business arrangement in which two or more parties agree to pool their resources and expertise to achieve a particular goal. The risks and rewards of the enterprise are also shared.
For Joint Venture & Strategic Alliance contact us at (020) 2442 – 0209. Visit http://huconsultancy.com/
This document summarizes key concepts related to shares and debentures issued by companies to raise capital. It defines shares and share capital, describing the main types of shares as equity and preference shares. It also outlines debentures, their types, and examples of IPOs and FPOs conducted by companies to issue new shares. The summary provides high-level information on the purpose and structure of the document.
This document summarizes key concepts related to shares and debentures issued by companies to raise capital. It defines shares and share capital, describing the main types of shares as equity and preference shares. It also outlines debentures, their types, and examples of IPOs and FPOs conducted by companies. The summary provides high-level information on the purpose, structure, and key points covered in the document.
The document defines what constitutes a startup according to the Startup India Standup India (SISI) scheme. A startup must be an incorporated or registered entity in India less than 5 years old with an annual turnover not exceeding 25 crore. It must be working on innovation, development, deployment or commercialization of new products, processes or services using technology or intellectual property. The entity can take the form of a private limited company, limited liability partnership or registered partnership firm. To be eligible, the startup must develop highly innovative products/services and receive certification and funding recommendation from approved incubators or investors. Benefits for eligible startups include seed funding, income tax exemptions, patent fee refunds, and exemptions from certain
A
startup is a newly established business, usually small,
started by an individual or a group of individuals What
differentiates it from other new businesses is that a
startup offers a new product or service that is not being
given elsewhere in the same way
Similar to Startups, quasi capital, vcf, fund (20)
This document summarizes regulations and policies governing India's defence and aerospace sectors. It notes that India imports 60% of its defence equipment and spends over $40 billion annually on defence. The government's policies aim for self-reliance in defence production and making India a defence sourcing hub. The aerospace sector is also growing and aims to be the largest civil aviation market globally by 2030. The document outlines the legal roadmap for entering these sectors including market entry regulations, import/export rules, and regulatory environments for civil aviation MRO and defence procurement.
This document discusses combating money laundering in India. It provides an overview of the framework for combating money laundering, including the roles and responsibilities of banks and financial institutions. Key aspects covered are customer acceptance policies, know-your-customer procedures, monitoring suspicious transactions, and performance of the Financial Intelligence Unit. Examples of money laundering activities in India like import remittance scams, property deals, hawala transactions, and corporate frauds are also summarized as case studies.
This document discusses arbitration, mediation, and their roles in resolving corporate disputes in India. It provides an overview of the Arbitration and Conciliation Act of 1996, which is based on the UNICITRAL Model Law and succeeded the 1940 Arbitration Act. It outlines what types of disputes can be arbitrated in India, such as contractual, tort, and winding up claims. The document also discusses the role of courts in domestic arbitrations and the grounds for setting aside arbitral awards. Additionally, it compares the factors and procedures of litigation, arbitration, and mediation, noting mediation is usually fastest, least costly, and allows parties the most control and possibility of a win-win outcome.
This document provides an overview of mergers and acquisitions (M&A) under Indian law. It defines mergers and acquisitions, outlines the key differences between them, and describes the regulatory framework and procedures for court-approved M&As. It also discusses categories and processes for acquisitions and takeovers, considerations for share purchase agreements, and aspects of slump sales. Finally, it provides pointers for value creation in M&As through logical target identification, capability expansion, integration planning, and focused post-transaction mobilization.
mediation in india negotiation in india chartered accountants india alternative dispute resolution ADR kritika krishnamurthy anuroop omkar Lakshmikumaran & Sridharan
private equity venture capital india food processing IT and ITES Banking and Finance Renewable Energy Pharmaceuticals foreign investment in India Lakshmikumaran & Sridharan
Safeguarding Against Financial Crime: AML Compliance Regulations DemystifiedPROF. PAUL ALLIEU KAMARA
To ensure the integrity of financial systems and combat illicit financial activities, understanding AML (Anti-Money Laundering) compliance regulations is crucial for financial institutions and businesses. AML compliance regulations are designed to prevent money laundering and the financing of terrorist activities by imposing specific requirements on financial institutions, including customer due diligence, monitoring, and reporting of suspicious activities (GitHub Docs).
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3. DEFINITION- STARTUP INDIA, STAND UP INDIA!
Pvt Co/ LLP/
Partnership Firm
Less than 5 years from
incorporation
Turnover upto INR 25 crore
Working towards innovation,
development, deployment or
commercialization of new
products/ processes/
services driven by
technology or IP
DIPP Approval
4. DEFINITION- STARTUP INDIA, STAND UP INDIA!
Incubator
established in
a
postgraduate
college in
India
Incubator
funded (for the
project) from
GOI or State
Govt under
scheme to
promote
innovation
Recommendat
ion of
innovation
from Incubator
recognized by
GOI
Letter of
funding of not
less than 20%
in equity by
any Incubation
Fund/Angel
Fund/Private
Equity
Fund/Accelera
tor/Angel
Network
registered with
SEBI
endorsing
innovation
Letter of
funding by
GOI or State
Govt under
scheme to
promote
innovation
Patent filed
and published
in the Journal
by the Indian
Patent Office
Any one of the following:
5. Self certification Start-up India hub Patent protection
INR 10,000 crore
fund
National Credit
Guarantee Trust
Company
No Capital Gains
Tax
No Income Tax
for three years
Tax exemption for
investments of
higher value
Building
entrepreneurs
Atal Innovation
Mission
Setting up
incubators
Research parks
Entrepreneurship
in biotechnology
Dedicated
programmes in
schools
Legal support
Rebate
Public
Procurement
Faster exit
Benefits&
Exemptions
7. INCORPORATION & MANAGEMENT
Category Company LLP
Prevailing Law Companies Act, 2013 Limited Liability Partnership Act,
2008
Capital
Requirement
No (Previously INR 1 lakh) No
Perpetual
Succession
Yes Yes
Charter Document Memorandum and Article of Association,
Shareholders Agreement
LLP Agreement
Number of
Members
Private- 2 to 200 members; Public-
Minimum 7 members without any limit on
maximum
Minimum 2 partners and no
limitation of maximum number of
partners
Tax Liability (*) Income taxed @ 33.99%. Income taxed @ 33.99%.
8. INCORPORATION & MANAGEMENT
Category Company LLP
Day to day administration Directors Designated Partners
Meetings Board Meetings and General
Meetings
No requirement; as per LLP
Agreement
Maintenance of Statutory
Records
Books of accounts, statutory
registers, minutes etc.
Only books of accounts.
Audit of accounts Required for all All LLPs, except with turnover less
than Rs.40 Lacs or Rs.25 Lacs
contribution in any financial year
Accounting Standards Mandatory Presently not available
Merger / Amalgamation Yes Yes
Oppression &
Mismanagement
Statutory remedy exist No provision relating to redressal
10. FUND RAISING- ISSUES
No track
record
No Fixed
Assets
Verification
of Financial
Projections
Commercial
Viability of
idea
Managerial
skills of
entrepreneur
How much
control?
12. Equity Shares
Redeemable Preference Shares
Optionally Convertible Preference Shares
Compulsorily Convertible Preference Shares (CCPS)
Compulsorily Convertible Debentures (CCD)
Optionally Convertible Debentures (OCD)
Revenue Sharing/ Net Sales Sharing/ Profit Sharing Agreement
Bank debt/ Asset Backed Lending
QUASI
CAPITAL /
MEZZANINE
DEBT OR
CAPITAL
LowtoHighRiskProfile
13. FEATURES
Startup company with no past
record or assets
Impact investment/ MSMEs
No exit strategy, No IPO possible
High risk compensated by higher,
fixed return than debt
Low or no say in management
Conversion to equity or payout
Debt Mezzanine Equity
Security Secured Subordinated None
Ranking First Second Third
Covenants Tight Flexible None
Term Demand Term/ Patient Patient
Coupon Floating Fixed Dividend
Rate Prime Risk Adjusted Market
Adjusted
Conversion No Convertible Shares
Prepayment
penalty
Yes No- fixed
return
No
Liquidity High Low Right to sell
14. STAGES OF FUNDING
Stage of
Development
Financing Need Risk Level
Seed “Seed” financing to prove a product concept. Completely new
venture or new idea
Very High
Start-ups In existence for 1 year or less. Financing needs could vary Very High
1st Stage Working capital for initial expansion, already in business but may be
operating at a loss
Moderately
High
2nd Stage In growth stage for plant expansion, marketing or new product
development
Moderate
Bridge Expects to go public within 6 months to a year and requires financing
to “bridge” to the IPO
Moderately
High
Leveraged
Buyouts
(LBOs)
To acquire a product line or business (at any stage of development)
with management holding a share of equity
Moderately
High
15. DEBENTURES
Definition
• S. 2(30) of
Companies Act,
2013
• Debenture stock,
bonds or any other
instruments
• Evidencing a debt
• May or may not
constitute a charge
on the assets of the
company
Nature & Rights
• S. 71 of Companies
Act, 2013
• Debt instrument
• Convertible wholly
or partly into equity
• Redeemable
• No voting rights in
company meetings
• Interest payable as
per terms of issue
Redemption
• Creation of
Debenture
Redemption
Reserve Account
• Out of profits
available for
dividend distribution
16. SECURED DEBENTURES OTHER
PROVISIONS
s. 71(3) read
with Rule 18,
Companies
(Share Capital &
Debentures)
Rules, 2014
Redemption
within 10 years
from date of
issue (except
infrastructure
companies)
Create charge
on assets of
company
sufficient for
repayment of
debentures and
interest
If more than 500
persons- charge
in favour of
debenture
trustee
Debenture Trustee
• Offer or invitation
to subscribe to
public or more than
500 persons
• Secured by Trust
Deed
• Liable to show
degree of care and
diligence to protect
interest of
debenture holders
• Not related party of
company (Rule 18
Sh. Cp. & Deb
Rules)
Default
• Tribunal (Presently
CLB)
• Debenture
Trustee- Order
imposing
restrictions on
incurring further
liabilities
• Other debentures-
Order to redeem
with interest and
principal
• Enforceable by a
decree of specific
performance
17. PREFERENCE SHARES
Meaning
• Explanation to S. 43 of Companies Act, 2013
• Company limited by shares
• Shares carrying preferential rights to dividend and redemption during winding up over
equity shares
• Convertible, Cumulative or Participating
Dividend
• Fixed amount or fixed rate
• Free or subject to income tax
• Redemption during winding up
• Preferential right to fixed premium or premium at fixed scale
• Specified in Memorandum & Articles of Association
Deemed Preference Shares
• Even if along with fixed dividend
• Preferential right to participate in profits available to equity shares
• Preferential right to share in surplus available to equity shares in winding up
18. Issue
• S. 55 of Companies Act, 2013 read with R. 9
Companies (Share Capital & Debentures)
Rules, 2014
• Authorized by Articles of Association
• Provided in Memorandum of Association-
Capital Clause
• No subsisting default in redemption of
preference shares or payment of dividend on
preference shares
• Special Resolution of shareholders
• Detailed requirement- Contents of resolution &
Explanatory Statement to Notice of EGM/AGM
Redemption
• Irredeemable not allowed
• Redemption within 20 years from date of issue
• Out of profits available for dividend distribution
or fresh issue of shares
• Create Capital Redemption Reserve Account
• Fully paid up
• Premium on redemption out of profits or
securities premium account
PREFERENCE SHARES
19. REVENUE/ NET SALES/ PROFIT SHARING AGREEMENT
Debt in company's
books of accounts
In lieu of share in
revenue/profits/sales
Definition and mode of
computation of
Revenue/Profits/Sales
Term of agreementReturn not assured
Enforceability tough-
civil suit, specific
performance/arbitration
/mediation
21. SEBI ALTERNATIVE INVESTMENT FUND REGULATIONS
Any fund established or incorporated in India
Trust/ company/ LLP/ body corporate
Privately pooled investment vehicle
Collects funds from investors, whether Indian or foreign,
for investing as per defined investment policy for the
benefit of its investors
Not covered under SEBI (Mutual Funds) Regulations, 1996,
SEBI (Collective Investment Schemes) Regulations, 1999 or
any other regulations of SEBI to regulate fund management
activities
Exemptions
Family trust
ESOP/ Employee Welfare/
Gratuity Trust
Holding Company
Special Purpose Vehicle
Securitization Trusts
Trusts of Asset Reconstruction
Companies (ARC)
22. CLASSIFICATION
Category I AIF Category II AIF Category III AIF
Invests in start-up, early stage
ventures, social ventures, SMEs,
infrastructure or other sectors which
government/ regulators consider
socially/ economically desirable
Does not fall in Category I
and III
Employs diverse or
complex trading strategies
and may employ leverage
including through
investment in listed or
unlisted derivatives
Venture capital funds, SME Funds,
social venture funds, infrastructure
funds and angel investment funds
Does not undertake
leverage or borrowing other
than to meet day-to-day
operational requirements
and as permitted
Hedge funds or funds which
trade to make short term
returns or open ended
funds- no incentives/
concessions by Govt/
Regulator
Generally perceived to have
positive spillover effects on
economy and for which SEBI, GOI
Private equity funds or debt
funds- no incentives/
concessions by Govt/
23. FEATURES & RISK EVALUATION
Features
• Equity shares with differential dividend rights
• Stake dilution based on risk involved
• Right to appoint director on board
• Right to participate in shareholders meetings
• Exit through IPO, buy back or sale to third party investor
• Exit at pre-agreed valuation/ premium
Risk
Involved
• Long-term commitment
• Difficulty in business valuation
• Entrepreneurial/management mismatches
• Lack of knowledge of competitors
• Macro economic & Market demand considerations
24. STAGES OF FUNDING
Stage of
Development
Financing Need Risk Level
Seed “Seed” financing to prove a product concept. Completely new
venture or new idea
Very High
Start-ups In existence for 1 year or less. Financing needs could vary Very High
1st Stage Working capital for initial expansion, already in business but may be
operating at a loss
Moderately
High
2nd Stage In growth stage for plant expansion, marketing or new product
development
Moderate
Bridge Expects to go public within 6 months to a year and requires financing
to “bridge” to the IPO
Moderately
High
Leveraged
Buyouts
(LBOs)
To acquire a product line or business (at any stage of development)
with management holding a share of equity
Moderately
High
26. CHARACTERISTICS
No direct investment
Invests in other
Funds which
undertake direct
investment
Everyday
examples: FoF in
mutual funds,
Pension funds,
endowment funds
Focus on sector,
geography, end
result
SIDBI- FoF for
government fund
allocation to venture
capital funds
Fund’s strategy and
risk/return must fit
within existing
portfolio
Allows
diversification
Total fund availability
Target return
Life cycle & Extension option
Number of funds and investment
thresholds (number and percentage)
Management fee
Target portfolio investment size
27. DOWNSIDE
Requires detailed evaluation and due diligence
Based on past performance which does not always
guarantee future projections
Requires intensive monitoring
Fund requires managers with
extreme efficiency and
experience
Too manager centric
Diversification
may reduce
returns