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THE GREATEST DIFFICULTY IN THE WORLD IS NOT FOR PEOPLE TO ACCEPT NEW IDEAS, BUT TO MAKE THEM FORGET

OLD IDEAS.-TOM PETERS

WHAT IS VC FUNDING?
IS IT JUST THE STORY OF THE MAN WITH THE idea AND THE MAN WITH THE MONEY ?

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VC FUNDING IS
IT IS THE BUSINESS OF EMPLOYING CAPITAL PATIENTLY TO MAXIMISE RETURNS WHILE MANAGING RISKS IN A RELATIVELY HIGH-RISK VENTURE VERSUS SIMPLY MINIMISING RISKS FOR A SURER FIXED RETURN
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Venture capitalists are typically very selective in deciding what to invest in; as a rule of thumb, a fund may invest in one of four hundred opportunities presented to it. Funds are most interested in ventures with exceptionally high growth potential, as only such opportunities are likely capable of SSIM 8/6/2011 4 providing the financial returns

Development In India
The concept was introduced in India in 1987 It was operated by Industrial Development Bank of India. In the same year Industrial Credit and Investment Corporation of India was also started venture capital activity.
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VC Mainly Looks at?


Promoters Integrity, Relevant Experience, Drive Level. Uniqueness Of Their IDEA Focus On/ Commitment To Their IDEA High Entry Barriers Competitive Advantages Good Market Size & Growth Rates Acceptable Geographic Location SSIM 6

Cont.
Targeting specific types of firms will yield the best results when seeking VC financing. The National Venture Capital Association segments dozens of VC firms into ways that might assist you in your search. It is important to note that many VC firms have diverse portfolios with a range of clients. If this is SSIM 7 the case, finding gaps in their

Cont.
Venture capital investment firms raise and pool together money from institutional investors and other high net worth individuals. These venture capital funding firms quite often provide managerial and technical expertise apart from funds for the business. The venture capital company will SSIM 8 then invest the pooled money in a number of business

FEATURES


NEW VENTURE: CONTINUOUS INVOLVEMENT : MODE OF INVESTMENT : OBJECTIVE


TO MAKE CAPITAL GAIN ON EQUITY INVESTMENT REGULAR RETURN ON DEBT FINANCING LONG TERM INVESTMENT IN GROWTH ORIENTED SMALL AND MEDIUM

 

HIGH RISK RETURN VENTURES : HUGE PROFIT AT THE EXIT TIME SSIM 9 NATURE OF FIRM : NEW SMALL AND MEDIUM SIZE

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