Venture capital is money provided by investors to startup companies for long term growth potential. The document discusses venture capital funding in India categorized by promotion entity (government institutions, banks, private sector), industry segment breakdown, top cities, and funding stages from seed to bridge. It provides funding details for three Indian e-commerce startups - Flipkart, Snapdeal, and Paytm - showing their founders and major investment rounds over time from local and international venture capital firms.

1. Venture Capital
Money provided by investors to start-up firms and small
businesses with perceived long term growth potential.

2. VENTURE CAPITAL FUNDING IN INDIA

3. Promoted By:
All India Financial
Institutions
State Level Financial
Institutions
Commercial
Banks
Private Sector
Institutions
ForeignIndian

4. Venture capital funds in India
VCFs in India can be categorized into following five
groups:
1) Those promoted by the Central Government
controlled development finance institutions. For
example:
- ICICI Venture Funds Ltd.
- IFCI Venture Capital Funds Ltd (IVCF)
- SIDBI Venture Capital Ltd (SVCL)

5. 2) Those promoted by State Government controlled
development finance institutions.
For example:
- Punjab InfoTech Venture Fund
- Gujarat Venture Finance Ltd (GVFL)
- Kerala Venture Capital Fund Pvt Ltd.
3) Those promoted by public banks.
For example:
- Can bank Venture Capital Fund
- SBI Capital Market Ltd

6. 4)Those promoted by private sector
companies.
For example:
- IL&FS Trust Company Ltd
- Infinity Venture India Fund
5)Those established as an overseas venture capital fund.
For example:
- Walden International Investment Group
- HSBC Private Equity
management Mauritius Ltd

7. Venture capital industry wise segmentation
6.94
7.73
11.5
4.32
27.95
4.82
11.43
12.92
3.36
9.03
Percentage
IT & ITES
Energy
Manufacturing
Media & Ent.
BFSI
Shipping & logistics
Eng. & Const.
Telecom
Health care
Others

8. Top cities attracting venture capital investments
CITIES SECTORS
MUMBAI Software services, BPO, Media, Computer
graphics, Animations, Finance & Banking
BANGALORE All IP led companies, IT & ITES, Bio-technology
DELHI Software services, ITES , Telecom
CHENNAI IT , Telecom
HYDERABAD IT & ITES, Pharmaceuticals
PUNE Bio-technology, IT , BPO

9. Venture
capital
funding
stages

10. SEED STAGE
The first stage of venture capital financing. seed-stage
financings are often comparatively modest amounts of capital
provided to inventors or entrepreneurs to finance the early
development of a new product or service. These early financings
may be directed toward product development, market research,
building a management team and developing a business
plan. A genuine seed-stage company has usually not yet
established commercial operations - a cash infusion to fund
continued research and product development is essential. These
early companies are typically quite difficult business
opportunities to finance, often requiring capital for pre-startup
R&D, product development and testing, or designing specialized
equipment. An initial seed investment round made by a
professional VC firm typically ranges from $250,000 to $1
million.

11. Early Stage - For companies that are able to begin operations but
are not yet at the stage of commercial manufacturing and sales,
early stage financing supports a step-up in capabilities. At this
point, new business can consume vast amounts of cash, while VC
firms with a large number of early-stage companies in their
portfolios can see costs quickly escalate.
Start-up - Supports product development and initial marketing.
Start-up financing provides funds to companies for product
development and initial marketing. This type of financing is
usually provided to companies just organized or to those that
have been in business just a short time but have not yet sold their
product in the marketplace.

12. First Stage - Capital is provided to initiate commercial manufacturing and
sales. Most first-stage companies have been in business less than three years
and have a product or service in testing or pilot production. In some cases,
the product may be commercially available.
SECOND STAGE
At this stage, we presume that the idea has been transformed into a product and is
being produced and sold. This is the first encounter with the rest of the market,
the competitors. The venture is trying to squeeze between the rest and it tries to
get some market share from the competitors. This is one of the main goals at this
stage. Another important point is the cost. The venture is trying to minimize their
losses in order to reach the break-even
The management team has to handle very decisively. The VC firm monitors the
management capability of the team. This consists of how the management team
manages the development process of the product and how they react to
competition.

13. The Third Stage
• This stage is seen as the expansion/maturity phase of the previous stage.
The venture tries to expand the market share they gained in the previous
stage. This can be done by selling more amount of the product and having a
good marketing campaign. Also, the venture will have to see whether it is
possible to cut down their production cost or restructure the internal
process. This can become more visible by doing a SWOT analysis.
• Apart from expanding, the venture also starts to investigate follow-up
products and services. In some cases, the venture also investigates how to
expand the life-cycle of the existing product/service.
• At this stage the VC firm monitors the objectives already mentioned in the
second stage and also the new objective mentioned at this stage. The VC firm
will evaluate if the management team has made the expected cost reduction.
They also want to know how the venture competes against the competitors.
The new developed follow-up product will be evaluated to see if there is any
potential.

14. The Bridge/Pre-public Stage
• This is the last stage of the venture capital financing process. The main goal of
this stage is for the venture to go public so that investors can exit the venture
with a profit commensurate with the risk they have taken.
• At this stage, the venture achieves a certain amount of market share. This gives
the venture some opportunities, for example:
• Merger with other companies
• Keeping new competitors away from the market
• Eliminate competitors
• Internally, the venture has to examine where the product's market position and, if
possible, reposition it to attract new Market segmentation. This is also the phase
to introduce the follow-up product/services to attract new clients and markets.

15. Founded 2010
Industry E commerce
Founders Kunal Bahl , Rohit Bansal
Venture Funding :-
January , 2011 - $12 million from Nexus venture
partners and Indo-US venture partners
July , 2011 - $45 million from Bessemer venture partners and
existing investors
Round 3 - $50 million from existing investors

16. Venture funding of $250000 in 2002
from Draper investment company
Venture funding of $1.3 million
Venture funding of 6 million
euros

17. February , 2014 - $133 million from Kalaari capital, Intel
capital, Saama capital and all existing investors
May , 2014 - $105 million from Blackrock, Temasek
holdings and Premji Invest
October , 2014 - $647 million from Softbank

18. Founded 2007
Industry E commerce
Founders Sachin Bansal, Binny Bansal
Venture Funding :-
 Accel India US$1 million in 2009
 Tiger Global US$10 million in 2010 and US$20 million
in June 2011
 ICONIQ Capital-$150 million
 Additional $200 million from existing investors
including Tiger Global, Naspers, Accel Partners and
Iconic Capita in July 2013

19.  DST Global-$210 million on 26 May 2014
 Tiger Global Management-$1 billion on 29 July 2014
 Baillie Gifford & Greenoaks Capital- USD 700 Million in
November 2014
 Singapore-based companies regulator ACRA- USD 700
million in December 2014
 By August 2015, after raising $700 million, Flipkart had
already raised a total of $3 billion, over 12 rounds and
16 investors

20. Founded 2010
Industry E commerce
Founders Vijay Shekhar Sharma
Funding :-
 In March 2015, Indian industrialist Ratan Tata made personal
investment in the firm .
 Paytm received a $575 million investment from Chinese e-
commerce company Alibaba Group in march 2015
 Ant Financial Services Group took 25% stake in One97 as
part of a strategic agreement.
 Company received 300cr from ICICI Bank in March 2016

21. Thank you
Presented By:
Aakriti Chaudhary FA15001
Pooja Tayal FA15040
Rahul Kumar FA15042
Saakshi Bhalla FA15045
Sambhav Jain FA14049
Bhawna Gupta FA15014