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CIA - III
VENTURE CAPITAL
SUBMITTED BY:
ARIHANT SETHIA (0911351)
SURAJ KUMAR (0911322)
AYUSH AGARWAL (0911307)
ROHIT MAHESWARI (0911372)
VENTURE CAPITAL
Venture Capital
Definition (VCC) –
“A financing institution which joins an entrepreneur
as a co-promoter in a project and share the risks and
rewards of the enterprise”
Continuous guidance
Public issue
Advantages to Promoters
Convincing only officials of the venture fund
Efforts required are less compared to those of
entrepreneurs choosing to raise capital through public
issue
Advantages (Contd..)
General advantages
Intermediary between investors (high returns) and
entrepreneurs
Development of economy
New products/process
Venture Capital Financing Stages
There are typically six stages of financing offered in Venture
Capital:
A. EARLY STAGE FINANCING
Seed capital and research and development projects
Start ups
Second Round Finance
B. LATER STAGE FINANCING
Development Capital, expansion finance, replacement capital,
turn around, Buy out.
Factors Affecting Investment Decision
Strong mgt team
A Viable Idea
Business Plan
Project Cost and Return
Future Market Prospect
Existing Technology
Miscellaneous Factors
Venture Capital in India