2. Venture Capital
• Venture capital is a form of financing especially
designed for funding high Technology, high risk
and perceived high reward projects.
• While a conventional financier seeks to fund
projects with proven technologies and already
established markets, a venture capitalist provides
funds to the entrepreneur pursuing new and
hitherto unexplored avenues and ideas.
• Venture capital helps the entrepreneurs translate
there new ideas into commercial production.
3. Venture Capital
• In India, the venture capital industry had its
formal introduction in the budget speech of
the Finance Minister in 1988.
• Coincidentally, around the same time, The
Industrial credit and Investment corporation
of India limited ( ICICI) came forth with
initiative for addressing high technology
projects.
4. Venture Capital
• One such initiative, the venture capital
division, was spun off into Technology
development and Information company of
India ltd (TDICI) which has since emerged as a
significant player and a pioneer in the field of
venture capital industry in the country.
5. Venture Capital
• The Government of India issued some guidelines on
November 18,1988 mainly to promote a broad framework
for the operations of venture capital in India.
• Following are the main features.
• 1.All Indian Financial Institutions, SBI and other Scheduled
banks are eligible to float such a fund.
• 2.Minimum size of fund should be Rs.10 crores.
• 3.In the event of public issues , the promoters share is to be
more than 40% of the issued capital
• 4.Foreign holding will be allowed up to 25% provided it
comes from multilateral international financial
organizations, developmental institutions or mutual funds.
