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Group - 6
Venture capital
๏‚› Venture capital means funds made available
for startup firms and small business with
exceptional growth potential.
๏‚› Group of wealthy investors, investment banks
and other financial institutions.
๏‚› Examples :
๏ƒ˜ Tencent and Google capital investment in Practo
๏ƒ˜ Alibaba Group investment in Paytm.
Steps in valuation of V.C
๏‚› Identify the amount capital
๏‚› Identify the target rate of return
๏‚› Estimate the multiple of original
investment
๏‚› Project the market value of firm
๏‚› Estimate the percentage of projected
value.

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Venture captial

  • 2. Venture capital ๏‚› Venture capital means funds made available for startup firms and small business with exceptional growth potential. ๏‚› Group of wealthy investors, investment banks and other financial institutions. ๏‚› Examples : ๏ƒ˜ Tencent and Google capital investment in Practo ๏ƒ˜ Alibaba Group investment in Paytm.
  • 3. Steps in valuation of V.C ๏‚› Identify the amount capital ๏‚› Identify the target rate of return ๏‚› Estimate the multiple of original investment ๏‚› Project the market value of firm ๏‚› Estimate the percentage of projected value.