Capital invested in a project in which there is a substantial element of risk, typically a new or expanding business.

1. VENTURE CAPITAL FINANCING
GROUP NO 7
TOPIC-A STUDY ON VENTURE CAPITAL IN INDIA

2. INDEX
 CONCEPT OF VENTURE CAPITAL
 FEATURES OF VENTURE CAPITAL
 VENTURE CAPITAL SPECTRUM/STAGES
 INVESTMENT PROCESS
 METHODS OF VENTURE CAPITAL
 DIFF BETWEEN VENTURE CAPITAL AND OTHER FUNDS
 GROWTH OF VENTURE CAPITAL IN INDIA
 STRATERGIES OF VENTURE CAPITAL FINANCING

3. COCEPT OF VENTURE CAPITAL
Startup companies with a potential to grow need a certain amount of investment.
Wealthy investors like to invest their capital in such businesses with a long-term growth
perspective. This capital is known as venture capital and the investors are
called venture capitalists.
Venture capital is a form of private equity and a type of financing that investors provide
to startup companies and small businesses that are believed to have long-term
growth potential. Venture capital is typically allocated to small companies with
exceptional growth potential, or to companies that have grown quickly and appear
poised to continue to expand.

4. In developing countries like India, venture
capital concept has been understood in
this sense. In our country venture capital
comprises only seed capital, finance for
high technology and funds to turn research
and development into commercial
production. In broader sense, venture
capital refers to the commitment of capital
and knowledge for the formation and
setting up of companies particularly to
those specialising in new ideas or new
technologies. Thus, it is not merely an
injection of funds into a new firm but also
a simultaneous input of skills needed to set
the firm up, design its marketing strategy,
organize and manage it.

5. FEATURES OF VENTURE
CAPITAL

6. VENTURE CAPITAL SPECTRUM/STAGES
Venture capital is a term that’s frequently thrown around when the discussion turns to getting startups
off the ground. While most know that it’s a source of funding, fewer people are familiar with exactly
how venture capital financing works
Venture capital is a form of funding that pools together cash from investors and lends it to emerging
companies and startups that the funds believe have the potential for long-term growth. Venture
capital investments typically involve high risk in exchange for potentially high reward.

8. INVESTMENT PROCESS
 Deal Origination
 Screening
 Evaluation
 Deal Negotiation
 Post Investment Activity
 Exit Plan

9. METHODS OF VENTURE CAPITAL
1. EQUITY CONDITIONAL LOAN CONVENTIONAL LOAN INCOME NOTE
DEBENTURES. EQUITY
2. SECURED PREMIUM NOTES.
3. INVESTMENT NURTURING/AFTER CARE.
4. DISINVESTMENT OF VENTURE CAPITAL
5. INITIAL PUBLIC OFFERING.
6. SALE OF SHARES TO ENTREPRENEURS
7. EXIT OF DEBT INSTRUMENTS.

10. DIFFERNCE BETWEEN
VENTURE CAPITAL
AND PRIVATE EQUITY

11. GROWTHOF VENTURE CAPITALIN
INDIA
Venture Capital in India was known since
nineties era. It is now that it has successfully
emerged for all the business firms that take up
risky projects and have high growth prospects
as well. Venture Capital in India is provided as
risk capital in the forms of shares, seed capital
and other similar means.

12. Nexus Venture Partners
gets $313 million for its
investment fund
Founded in 2006, Nexus was one of the first India-US
venture funds started by successful entrepreneurs in
enterprise technology and consumer internet. Nexus has
been a pioneer of investing in global technology products
and technology-led businesses for India.
Early partners
We are typically the first institutional investor, investing in
seed and series A rounds.
Long-term commitment
We partner with entrepreneurs through thick and thin and
continue to back them through their entrepreneurial
journey.
Hands-on investors
We work closely with our portfolio companies and are the
first port of call for our founders.
Global perspective
We work together as a single team across the US and India,
and help our companies scale to new markets and adopt
global best practices.

13. CURRENT STRATERGY
THERE ARE THREE VENTURE FUND STRATERGY
1. Add Value
2. Source better
3. Invest better
ADD VALUE
Adding value is a real strategy because it moves existing investments up the curve. It increases the return on an
investment. Investments move up the tail of the curve because of the value the venture investor creates.
Improving portfolio company operations is the most common approach. Recruitment, marketing, partnerships, sale,
operations, and board support are common areas to help. Most often this takes the form of coaching founders or
rolling-up your sleeves to help them get work done. Some funds institutionalize value-add through software or
platform teams. Startup studios are interesting, blurring the lines between founders and investors.

14. SOURCE BETTER
Sourcing better is a real strategy because it rescales the distribution. Even a random selection of investments from a
better-sourced distribution of companies will have a higher expected return than an average venture fund. Fishing
in a better pond can make as much (or more) difference as being a better fisherman.
A classic way to source better is to build a better network. This works for firms with a strong general reputation. It
can also work if you are deep in a particular group of exceptional people—say, globally-elite AI researchers. Focusing
on a geography can create strong networks if a fund establishes regional dominance.
INVEST BETTER
Investing better is a real strategy because you end up in bigger winners. It increases the frequency in the upper tail
of outcomes. In the graph above, investing better switches the five investments from light-grey to the new orange
bars.
Picking better is the dominant way to achieve outsized results at the seed stage. And the most important factor for
picking better is, by far, good judgment. Good judgment is hard to describe. It's a somewhat ephemeral quality,
which only reveals itself over time. As Bill Gurley says, it's the single most important quality he looks for in a new
investing partner.
Picking better is also a function of doing research and developing insights. Having a correct industry thesis is a
perfect example. If you can predict major technology and economic trends, you will be rewarded with more hits.

15. THANK YOU
RUTHVIK ALVA-1
JANVI GANGAL-16
ARJUN NAIR-56
ASHWINI NAIR-57
AFTAB SHAIKH-84
SATISH SUBRAMANIAM-79
SHONIT SHETTY-98
SWASTIK SHETTY-120