This presentation carries complete knowledge of Venture capital which will be very helpful to understand the origin and the requirement of venture capital.

1. DR.RICHA SINGHAL
ASSOCIATE PROFESSOR
DEPTT. OF EAFM
S.S.JAIN SUBODH PG COLLEGE

2. VENTURE CAPITAL
• Venture Capital is money invested in businesses that are small or
exist only as an initiative, but have huge potential to grow. The
people who invest this money are called venture capitalists (VCs).
The venture capital investment is made when a venture capitalist
buys shares of such a company and becomes a financial partner in
the business.
• Venture Capital investment is also referred to risk capital or patient
risk capital, as it includes the risk of losing the money
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3. FEATURES OF VENTURE CAPITAL:
• Long-time horizon
• Lack of liquidity
• High-tech
• Equity instruments
• Amount of Risk
• Provided at earlier Stage
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4. Cont…….
• Finance to Smaller and Less Mature companies
• Longer gestation period
• New products in anticipation of higher returns
• Active participation in the management.
• Regular Monitor
• Not permanent basis
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5. METHODS OF VENTURE CAPITAL
FINANCING
• EQUITY SHARE CAPITAL-
• CONDITIONAL LOAN
• INCOME NOTE
• PARTICIPATING DEBENTURES
• QUASI EQUITY
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6. HISTORY OF VENTURE CAPITAL
• Before World War II (1939-1945) venture capital was primarily the
domain of wealthy individuals and families.
• Georges Doriot- In 1946, he founded American Research and
Development Corporation, the world's two first venture capital
firms, earning him the nick name "father of venture capitalism".
• Venture capitalism in India began in 1986 with the start of the
economic liberalization.
• Since 1988, ICICI has played a prominent role in promoting venture
capital investments in India and currently manages funds over $2
billion.
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7. • In the year 1988, the Government of India took a policy initiative
and announced guidelines for Venture Capital Funds (VCFs).
• In 1996, Securities and Exchange Board of India (SEBI) issued the
guidelines for venture capital funds to follow.
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8. (i) Public Sector-
• Indus Venture Fund
• 20th Century venture Capital Corporation Ltd.
• India Investment Fund
• Credit Capital Venture Fund (India) Ltd.
• Infrastructure Leasing and Financial Services Ltd.
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In India, the Venture Capital Funds can be classified into two categories:

9. (ii) Public Sector-
• SBI Capital Markets Ltd. (SBICAP)
• Canbank Venture Capital Fund Ltd. (CVCFL)
• Technology Development and Information Company of India Ltd.
(ICICI)
• Industrial Development Bank of India.(IDBI)
• Risk Capital and Technology Finance Corporation (RCTC)
• Gujrat Venture Finance Ltd.
• Andra Pradesh Venture Capital Ltd.
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10. ADVANTAGES OF VENTURE
CAPITAL
• Industrialization
• Technological development
• Generates employment
• Developing entrepreneurial skills
• Profit to venture capital companies.
• Employment of idle funds
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11. Cont…..
• Business Partner
• Mentoring
• provide large sum of equity finance.
• Provides long-term equity finance
• business success & the capital gain.
• Expertise knowledge
• Wide network of capitalists
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12. DISADVANTAGES OF VENTURE
CAPITAL
• Lengthy and complex process (needs detailed business plan, financial projections
and etc.)
• legal and accounting fees
• loss of autonomy or control.
• Longer payback period.
• Uncertainty in success
• Skills and Training required.
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13. THANKS
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