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.

1. TOPIC:- VENTURE CAPITAL
CLASS:-SYBFM
PRESENTED TO:-
PROF. DEBJANI SINGHA
Chetana Hazarimal Somani College Of
COM. & Eco. & Smt. Kusumtai
Chaudhari College Of Arts

2. Group Members
Name Roll No.
Megha Gosavi 214
Anil Jain 217
Neha Panchal 224
Yogesh Raut 232
Heena Tiwadekar 244

3. Agenda
 Concept
 Definition
 Origin And Development
 Features
 Stages
 Features Of a VC Firm
 Eligibility To Seek Venture Capital Funding
 Steps In Seeking Venture Capital
 The Venture Capital Investment Process
 Indian Scenario

4. Agenda continue………
 Venture Capital Regulation In India
 Venture Capital Fund In India
 Advantages Of Venture Capital
 Methods Of Venture Financing

5. Concept Of Venture Capital
 Venture capital is the capital invested in a business
where the chances of success are uncertain.
 It is term to describe the financing of startup and
early stage business as well as businesses in “ turn
around” situations

6. Definitions
 Venture capitalist is a person who make such
investments.
 Venture capital fund is a partnership or trust or a
company that primarily invests the financial capital
of promoters and other investors in enterprises that
are too risky for the standard capital markets or bank
loans

7. Origin And Development Of Venture Capital
Concept
 VC concept is a US origin concept.
 Organized VC fund was started in 1946 when
American research and development corporation
(ARD), a publicly traded, closed-end investment
company was formed.
 In 1958 for computer maker digital equipment corp
was provided with start-up financing by ARD.
 ARD was eventually profitable, providing its original
investors with a 15.8% annual rate of return over its
25 year as an independent firm

8. Features Of Venture Capital
 Venture capital is usually in the form of equity or mix
of equity debt.
 Commercial success of funded venture is not tested
and hence VC is a risk investment.
 If successful, VCs can get extraordinary returns.
 VC is not just a fund provider but also is involved in
managing the envisaged growth of the firm.
 VC are interested in capital gains and cash gains.

9. Stages of venture capital
Stage Capital Concept Purpose
Concept & Idea development stage Seed Capital For product development and pilot
plant. Commercial possibilities are
tested at this stage.
Implementation Start-up finance For commercial plant development
and full fledged operations roll-out.
Expansion Growth Capital To scale up operations. At this stage
product is almost a tested success in
limited markets.
Other Forms
Struggling and loss making Turn around financing Business process re-engineering,
bail-out package.
Stop-gap or intermediate stage Mezzanine financing Urgent need before completing
formalities of public issue, term loan
etc.

10. Features Of a VC Firm
 Investment in high-risk, high-returns ventures
 Participation in management
 Raises fund from several sources
 Diversification of the portfolio
 Exit after specified time

11. Eligibility To Seek Venture Capital Funding
 Strength and motivation of management teams
 Clarity on product development strategies
 Carefully defined target markets with possibility to
scale-up in a big way
 Innovation quotient in proposed product or idea

12. Indian Scenario
 In 1973 a committee on development of small and
medium enterprises highlighted the need to foster
venture capital as a source of funding new
entrepreneurs and technology.
 Government of India and guideline for venture
capital funds were formulated in 1988.

13. Venture Capital Regulation In India
SEBI (VC funds) regulation,1996 are:-
 Any company or trust or a foreign VC fund to carry on
any activity as a venture capital fund should apply to
SEBI.
 The venture capital fund shall not carry any other activity
other than that of a venture capital fund.
 Minimum sum acceptable by VC fund from any investor
is RS. 5 lakh.
 Venture capital fund should not invest more than 25%
corpus of the fund in one venture.
 VC should not invest in the associated companies.

14. Venture Capital Fund In India
 ICICI venture funds management company limited
 IFCI venture capital funds ltd
 SIDBI venture capital limited
 IL&FS group businesses
 Gujarat venture finance ltd

15. Advantages Of Venture Capital
 To VC Fund investors
 To Enterprises seeking VC funding
 To economy

16. Methods Of Venture Financing
 Equity
 Conditional Loan
 Income Note
 Other Financing Methods