This document discusses venture capital in India. It provides information on what venture capital is, the stages of venture capital financing, and how it has developed in India. Some key points are: - Venture capital provides financial capital to early-stage companies with high growth potential. It often also provides managerial and technical expertise. - Venture capital financing typically involves money received by startups and growing companies in exchange for equity. - Venture capital in India was formally introduced in 1987 and has since been provided by government institutions, public/private banks, and private sector funds. - The Indian Venture Capital and Private Equity Association represents industry players and promotes venture capital and entrepreneurship in India. - Future

1. Venture Capital in India
Presented to:- Pro. Vipin Garg.
Presented By:- Ramandeep Kaur,
Roll No.:- 304,
MBA (IC) 10th Sem.

2. Venture capital (VC) is financial capital provided to
early-stage, high-potential, high risk, growth start up
companies. VC funds made available for startup firms
and small businesses with exceptional growth
potential. Managerial and technical expertise are
often also provided, also called risk capital.
Venture Capital

3. Venture capital financing is typically referring to the
money received, or the act of receiving money from a
venture capital fund for use in the operations of a
start up or growing company. While some venture
capital financing agreements may be loans, it is most
common for venture capital financing to also involve
a transfer of some business equity.
Venture Capital Financing: Meaning

4. Early stage financing
1. Seed capital/ pre-start up
2. Start up
3. Second round financing
Later stage financing
1. Mezzanine/ Development capital
2. Bridge/ Expansion
3. Buyouts
I. Management Buyouts
II. Management buy ins
Turnarounds
Stages of Venture capital financing

5. Equity
Conditional loan
Income notes
Participating debentures
Quasi equity
Methods of Venture Financing

6. The concept of venture capital was formally
introduced in India in 1987 by IDBI.
ICICI started VC activity in the same year
Later on ICICI floated a separate VC company - TDICI
DEVELPOMENT OF VENTURE
CAPITAL IN INDIA

7. 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.(1988)
- IFCI Venture Capital Funds Ltd (IVCF) (1975)
- SIDBI Venture Capital Ltd (SVCL) (1999)
Venture capital funds in India

8. 2) Those promoted by State Government controlled
development finance institutions.
For example:
- Punjab Infotech Venture Fund
- Gujarat Venture Finance Ltd (GVFL) (1990)
- Kerala Venture Capital Fund Pvt. Ltd.(1993)
3) Those promoted by public banks.
For example:
- Canbank Venture Capital Fund (1989)
- SBI Capital Market Ltd (1986)
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9. 4)Those promoted by private sector
companies.
For example:
- IL&FS Trust Company Ltd (1995)
- Infinity Venture India Fund
5)Those established as an overseas venture capital
fund.
For example:
- Walden International Investment Group
- HSBC Private Equity (1853)
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10.  It was established in 1993 and is based in Delhi, the
capital of India
 It is a member based national organization that
- represents venture capital and private equity firms
- promotes the industry within India and throughout
the world
- encourages investment in high growth companies
and
- supports entrepreneurial activity and innovation.
Indian Venture Capital and Private
Equity Association (IVCA)

11. IVCA members comprise venture capital
firms, institutional investors, banks, incubators, angel
groups, corporate
advisors, accountants, lawyers, government
bodies, academic institutions and other service
providers to the venture capital and private equity
industry.
Members represent most of the active venture capital
and private equity firms in India. These firms provide
capital for seed ventures, early stage companies and
later stage expansion.
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12. VC can help in the rehabilitation of sick units.
VC can assist small ancillary units to upgrade their
technologies
VCFs can play a significant role in developing
countries in the service sector including tourism,
publishing, health care etc.
They can provide financial assistance to people
coming out of universities, technical institutes, etc.
thus promoting entrepreneurial spirits
Future prospects of VC in India

13. Venture capital investments down by 30% to $762
million across 206 deals in 2012, but in 2011 VCs
invested $1094 million spread across 222 deals.
Investments in IT companies led the deal table
accounting for $381 million across 133 deals last year,
but dropped from $558 million in 2011.
The value of deals in health care and life sciences
dipped to $98 million from $120million.
Venture Capital Financing in India
(2012)

14. E-commerce saw 31 PE and VC deals in 2012
translating into $298 million compared to 36 PE/VC
deals worth $328 million in 2011.
Group-buying sites that raised $66 million across four
deals in 2011, did not see a single round of fund-raising
in 2012.
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15. SIDBI Venture Capital to invest Rs.150 cr in small and
medium enterprises in next 3-4 months
Investors commit over Rs 400 crore for funding new
ventures for the poor
Canbank Venture Capital invests in Guwahati hospital
Venture Capital Financing in India
(2013)

16. Of the first disbursement (by the government) of
Rs.500 crore, we have already committed Rs.350
crore," SIDBI Chairman and Managing Director S
Muhnot said.
Remaining Rs.150 crore would be utilized in the next
3-4 months
Meanwhile, SIDBI has signed a memorandum of
understanding with Social Fund of Development of
Egypt to undertake SME sector development projects
in that country.
SIDBI Venture Capital to invest Rs.150 cr
in small and medium enterprises in next
3-4 months

17. Investors have committed at least Rs 400 crore to a
government-backed fund that will provide capital to
new ventures serving the needs of India's low-income
communities.
The fund, whose eventual size is envisaged at more
than Rs 5,000 crore, is the first such by the
government, which is taking increasing interest in
venture capital investing.
Investors commit over Rs 400 crore for
funding new ventures for the poor

18. The investment now raised as venture finance from
Emerging India Growth Fund, a Rs 500-crore fund
managed by Canbank Venture is being used to part
finance the setting up of a 300-bedded Super Specialty
Hospital at north Guwahati, Assam, and for
modernization, up gradation, expansion of existing
facilities.
Canbank Venture Capital invests in
Guwahati hospital