The document discusses venture capital financing in India. It begins with acknowledging those who created the presentation. It then provides an overview of venture capital, describing it as private equity funding provided at various stages of a company's growth. Examples are given of active venture capital firms in India and the industries and startups they invest in. The presentation outlines the advantages and disadvantages of venture capital financing. It discusses the various stages of venture capital financing and exit strategies. It concludes by noting the impact of COVID-19, with investments dropping but sectors like fintech and healthcare faring better.

1. Presented By :-
Venture Capital Finance
Avneet Singh 65
Divyam Garg 109
Prabhgun Singh 129

2. Acknowledgement
We would like to express our special thanks of
gratitude to our teacher Ms. Komal Chhikara who gave
us the golden opportunity to do this wonderful project
on the topic Venture Capital Finance. We are very
grateful to our ma’am for her guidance in completing
this project. We all learnt a lot about this topic while
making this presentation.

3. • If we want to start a
business, or we need to
grow business,
we need money.. Right??
• But where from the money,
cash, investment will come
??
• Well.. We will give a solution
to these problems..

4. Venture Capital
Finance
Venture capital financing is
a type of funding by
venture capital. It is private
equity capital that can be
provided at various stages
or funding rounds.
Common funding rounds
include early-stage seed
funding in high-potential,
growth companies and
growth funding.

5. Active Venture Capital Firms In India
1.) Accel Partners
Domain of Investment – Infrastructure, mobile,
internet etc.
Startups Funded – Myntra, Flipkart etc.
2.) Sequio Capital
Domain of Investment – Healthcare, Financial,
Technology etc.
Startups Funded – JustDial, Zomato, Practo etc.
3.) Kalaari Capital
Domain of Investment – Internet, Ecommerce etc.
Startups Funded – Snapdeal, Myntra, Urban
Ladder etc.

6. Features of Venture Capital Finance :-

7. Advantages of
Venture Capital
Finance :-
1.) Large Amounts of Capital can be raised
Many small business loans for startups are
limited and qualifying can be difficult.
2.) Help managing risk is provided
Bringing on venture capital helps startup
founders manage the risk inherent in most
startups.
3.) Monthly Payments are not required
Unlike small business and personal loans,
there are no regular payments for your
business to make.
4.) Personal Assets don’t need to be
pledged
You will not have to contribute additional
personal assets to the growth of your business.

8. 5.) Experience Leadership & Advice is Available
Many successful startup founders become partners at venture capital
firms after they exit their businesses. They often have experience
scaling a company.
6.) Help Raising Subsequent Rounds of Funding Is Available
Venture capital firms are interested in seeing your company raise
additional funding at a higher valuation.

9. 7.) Increased Publicity & Exposure Are Likely
Most venture capital firms have a group and media contacts,
and it’s in their best interest to get exposure for your startup.

10. Disadvantages
of Venture
Capital :-
1.) Founder Ownership Is Reduced
When raising a funding round, you will need
to dilute your equity to issue new shares to your
investors.
2.) Finding Investors Can Be
Distracting for Founders
Startups decide it’s time to raise venture
capital when other funding sources have been
exhausted and the money is necessary for
growth.
3.) Formal Reporting Structure &
Board of Directors Are Required
When you get venture capital funding, you’ll
be required to set up a board of directors and a
more rigid internal structure.
.

11. 4.) Business Is Expected to Scale & Grow
Rapidly
To get a return on their investment,
venture capital firms need your startup to
appreciate in value on its way to being either
acquired or listed on stock exchange.
5. ) Losing the Business for Founders Is Possible
If founders are not engaging in behavior that
maximizes shareholder value, they are often let
go.

12. Who Venture Capital Is Right For

13. Types of Venture Capital
Financing
Early Stage Financing
Expansion Financing
Buyout Financing

14. Process of Venture Capital
Financing
Deal Origination
Screening
Evaluation
Deal Negotiation
Post-Investment Activity
Exit Plan

15. Deal Origination
Venture capital financing
begins with origination of a
deal.
There may be various
sources of origination of
deals.
A continuous flow of deals
is essential for venture
capital business.

16. Screening
Venture capitalist scrutinize
all the projects in which he
could invest.
Entrepreneurs may asked to
provide a brief profile of
their venture.
The projects are categorized
under certain criterion such as
market scope, technology or
product.

17. Evaluation
Venture capitalist do a
detailed evaluation of the
proposal.
Venture Capitalist undertakes
thorough risk analysis of the
proposals.
It not only evaluates the
project capacity but also the
capacity of the entrepreneurs
to meet the claims.

18. Deal Negotiation
Venture capitalist negotiates all
the terms of the deal with
Entrepreneur.
Terms of the deal should be
mutually beneficial to both
Venture Capitalist and
Entrepreneur.

19. Post Investment Activity
Venture Capitalist becomes a
part of the venture and takes
up certain rights and duties.
Venture capitalist participate in
the company generally through
Board of Director’s meetings.

20. Exit Plan
The exit plan is made to make
minimal losses and maximum
profits.
There are several ways by
which a Venture Capitalist may
exit from a Venture.

21. Methods of Venture Capital
Financing
Equity Financing
Conditional Loans
Conventional Loans
Debentures

22. How covid-19 has changed Venture
Capital investing in India
Venture Capital investments, both in
terms of number of deals and value
of investments, have dropped in
calendar 2020
In January and February 2020,
Venture Capitalists invested more in
Indian startups compared to the
same period in 2019.
March onwards, each month has
seen fewer Venture Capital deals
and smaller amounts, compared to
the corresponding month of 2019.

23. VC investments have dropped in 2020, with May being especially bad

24. Fintech, healthcare,
education and food have
been the leading sectors in
2020 in terms of
investments.
E-commerce has been the
big loser, going from raising
more than a billion dollars
in each half of 2019 to $202
million in the first half of
2020.

25. Startups in early stages
depend almost entirely on
VC funding as they tend to
have little or no revenues.
VC firms with larger
portfolios, led by Sequoia
and Accel, continue to lead,
especially given the demand
from funded startups for
additional funds.

26. • In India, the venture capital plays a vital role in the development and growth of innovative
entrepreneurs. Venture capital activities were primarily done by only a few institutions to
promote entities in the private sector with funding for their business.
• The need on venture capitals was recognized in the 7th five year plan and long term fiscal
policy of the government of India.
• Considering the high risk involved in the venture capital investments complimenting the high
returns expected, one should do a thorough study of the project being considered, weighing
the risk-return ratio expected. One needs to examine both the venture capital being targeted
and on the business requirements.