VENTURE CAPITAL FINANCING BY B.HARIHARAN
Here in the above diagram we can conclude the followingFor venture to happen there should be a concept or idea
There should be a person to invest
If it happens then it is called as venture
The benefits are enormous but also involve risk
The risks may pay off or sometimes may backfireINTRODUCTIONIt plays a strategic role in financing small scale enterprises, high technology and risky venturesThe venture capital activity has taken route in number of developing countries. It has potential to become an important source for financing of small scale enterprises
MOTION OF VENTURE CAPITALDEFINITION :“ Venture capital is the investment of long term equity finance where the venture capitalist earns his return primarily in the form of capital gain”                                                 -according to                                                        Pratt
Significant financial innovation of 20’th century
Generally considered as synonym of risky capital
Often thought as early stage financing for new &young enterprises
Focuses on growth that would like to see in small scale enterprises while they develop into large enterprises
Used for fostering the growth and development of enterprise
Business enterprise in various sectors need venture capital for financing various stages of developmentVARIOUS STAGES IN JOINT VENTURE FINANCING
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DEFINITIONS“A business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals”
“The process of creating the business plan which is —    A statement of long-range strategy and revenue, cost, and profit objectives usually accompanied by budgets, a projected balance sheet, and a cash flow statement. .”“A written document which describes the business, its objectives, its strategies, the market in which it operates and its financial forecasts”First step for a company or an enterprise proposing a new venture in obtaining venture capital is to prepare a business plan for the consideration of a venture capitalist(share holders) .The business plan must be so that it convinces the venture capitalist and the company entrepreneur that they have the ability to achieve the stated goals within the specified timeIt should explain-nature or the proposed venture plan-what it wants to achieve-how is it going to achieve -prepare or set challenging but achievable goals-Length should not be long-language should be simple & all technical details should be explained without jargons
ESSENTIAL ELEMENTS OF A BUSINESS PLAN
EXECUTIVE SUMMARYIt is the most important aspect of a business plan asSummarizes the business plan
It is placed at the beginningIt is vital to give this summary significant thought and time as it may well determine the amount of consideration the venture capital investor will give to the detailed proposal

Venture capital financing

  • 1.
  • 3.
    Here in theabove diagram we can conclude the followingFor venture to happen there should be a concept or idea
  • 4.
    There should bea person to invest
  • 5.
    If it happensthen it is called as venture
  • 6.
    The benefits areenormous but also involve risk
  • 7.
    The risks maypay off or sometimes may backfireINTRODUCTIONIt plays a strategic role in financing small scale enterprises, high technology and risky venturesThe venture capital activity has taken route in number of developing countries. It has potential to become an important source for financing of small scale enterprises
  • 8.
    MOTION OF VENTURECAPITALDEFINITION :“ Venture capital is the investment of long term equity finance where the venture capitalist earns his return primarily in the form of capital gain” -according to Pratt
  • 9.
  • 10.
    Generally considered assynonym of risky capital
  • 11.
    Often thought asearly stage financing for new &young enterprises
  • 12.
    Focuses on growththat would like to see in small scale enterprises while they develop into large enterprises
  • 13.
    Used for fosteringthe growth and development of enterprise
  • 14.
    Business enterprise invarious sectors need venture capital for financing various stages of developmentVARIOUS STAGES IN JOINT VENTURE FINANCING
  • 15.
  • 18.
    DEFINITIONS“A business planis a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals”
  • 19.
    “The process ofcreating the business plan which is — A statement of long-range strategy and revenue, cost, and profit objectives usually accompanied by budgets, a projected balance sheet, and a cash flow statement. .”“A written document which describes the business, its objectives, its strategies, the market in which it operates and its financial forecasts”First step for a company or an enterprise proposing a new venture in obtaining venture capital is to prepare a business plan for the consideration of a venture capitalist(share holders) .The business plan must be so that it convinces the venture capitalist and the company entrepreneur that they have the ability to achieve the stated goals within the specified timeIt should explain-nature or the proposed venture plan-what it wants to achieve-how is it going to achieve -prepare or set challenging but achievable goals-Length should not be long-language should be simple & all technical details should be explained without jargons
  • 20.
    ESSENTIAL ELEMENTS OFA BUSINESS PLAN
  • 22.
    EXECUTIVE SUMMARYIt isthe most important aspect of a business plan asSummarizes the business plan
  • 23.
    It is placedat the beginningIt is vital to give this summary significant thought and time as it may well determine the amount of consideration the venture capital investor will give to the detailed proposal