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Green V.C
Green V.C
Submitted To: Mr. Pardeep Kumar Assist. Prof. MFS Submitted By: Parneet Ahluwalia 175 MBA
Venture capitalists only have two emotions: fear and greed. All their decisions are reached by balancing one against the other.
Venture
A course of action or proceeding, the outcome of which is uncertain but which is attended by the risk of danger of loss.
Capital
The resources to start the enterprise OR The money, property, and other valuables which collectively represent the wealth of an individual or business.
Characteristics Of VC
New Ventures. Continuous Involvement. Mode of Investment. Objective. Hands-on Approach. High risk-Return Ventures. Nature Of Firms. Liquidity.
Methods of Evaluation of VC
A. Conventional Method. B. First Chicago Method. C. Revenue Multiplier Method.
A. Conventional Method
Annual Revenue. Expected Earnings level. Future Market Valuation. Present Value of VC. Minimum Percentage of Ownership.
C. Revenue Multiplier Method Annual revenue of the company estimated revenue multiplier
Advantages
Provides large sum of finance
&expertise. Mentoring . Alliances . Facilitate exit. Business & Management Consultations. Additional Resources. Encourages new breed of Entrepreneur.
Disadvantages
Pricing / Negotiation. Intrusion Control / demand of the board of the
company . Industry specific . Bring enormous pressure to profit quickly . Long and complex process. Requirement of Professional business Plan Drawer.
limited. IDBI venture capital fund. Technology development and Information Company of India Limited (TDICI) Indus Venture Capital fund. Small Industrial Development bank of India (SIDBI). Gujarat Venture Finance Limited. Others.