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Types of Venture Capitalists

Generally, there are three types of organized or institutional venture capital funds i. Venture capital funds set up by angel investors, that is, high network individual investors ii. Venture capital subsidiaries of corporations - these are established by major corporations; commercial bank holding companies and other financial institutions iii. Private capital firms/funds-The primary institutional source of venture capital is a venture capital firm venture capitalists take high risks by investing in an early stage company with little or no history and they expect a higher return for their high-risk equity investments in the venture.

Private Agencies

Venture capital funds set up in the private sector include 1. Credit Capital Venture Fund (CCVF) 2. 20th Century Venture Capital Fund 3. India Investment Fund 4. Indus Venture Capital Fund (IVCF) (5) SBI Capital Venture Capital Fund (1) Credit Capital Venture Fund (CCVF) - The Credit Capital Venture Fund (India) was established in 1986. It has a capital base of 10.8 crores. The principal shareholders are Credit Capital Finance Corporation, Bank of India, Asian Development Bank, Common Wealth Development Corporation. It finances ventures promising high returns with maximum assistance limited to Rs. 50 lakhs. It also provides value added services in an advisory role and actively participates in marketing, recruitment and management affairs. -Thus it helps the entrepreneurs to realise maximum returns. It has recently launched 10 state funds of Rs. 10 crore each. It is now known as Lazard Credit Capital Fund (India) Ltd. (LCCVF). (2) 20th Century Venture Capital Fund - It was promoted by 20th Century Finance Ltd. and has a resource base of Rs. 20 crores. The fund aims at reviving the sick industries and help first generation entrepreneurs. (3) India Investment Fund - It is India’s first private venture capital fund mainly subscribed by Non-Resident Indians (NRIs). The Fund is “an offshore company owned predominantly by NRI investors incorporated in early 1987. The fund provides equity or equity linked finance to new projects or often young as well as established Indian companies which can demonstrate a potential for sustained growth.

The maximum assistance made available to one venture is limited to Rs. 120. the former Director of Unilever. 1987 1987 Rs. (5) SBI Capital Venture Capital Fund. (IVML) has been entrusted with the management of (IVCF).6 US$ 7. This fund has been set up by the SBI Capital Markets Ltd. The fund has a capital base of Rs. The fund follows hands off approach in making the investment. IFCI. One crore. Services Ltd. Early Beginnings Venture Capital Funds Set Up during 1987-1994 VC Fund Set Up By Year Size (Million) 1 2 3 4 5 6 7 8 Venture Capital Fund Scheme India Investment Fund IDBI Grindlays 3i Invest. Grindlays 3i Invest. The principal investment objectives of the fund is long term capital appreciation. TDICI APIDC Venture Capital Ltd. the IDB!. Services Ltd. IVCF has a capital resource of Rs.5 Venture Capital Unit Scheme I Canbank Venture Capital Fund All Industry Fund 1989 1989 1990 Rs. 300 Rs. 156 Rs. TDICI Canbank Financial Services Ltd. 10 crore. (4) Indus Venture Capital Fund (lVCF) This fund was promoted by Shri T. The Indus Venture Management Ltd. Merchant Banking Division of Grindlays Bank has been retained as the advisers for the Fund which evaluates and recommends specific investment proposals. 135 . Credit Capital Venture Fund (I) Ltd. 21 crores contributed by IVML. to finance ventures through its “bought out deals”. Thomas. 543.6 Second India Investment Fund 1990 US$ 13.5 Venture Capital Unit Scheme II APIDC Venture capital Fund 1990 1990 1990 Rs. 1000 Rs. The objective behind the fund is to promote new capital issues by purchasing them when capital market is sluggish and disposing them off at times when market picks-up. International Finance Corporation (Washington) and a few other national/international organisations. Deutsche Bank.

vehicles. 1979 .S. Srinivasan.' was incorporated. 20th Century Venture Capital Corp. 1990 . carries on leasing of all types of industrial & office plant. . 210 1991 1991 1992 Rs. V. machinery.' had also commenced operations during the year. Indus Venture Management Ltd. Parthasarathy & S. Credit Capital Venture Fund (I) Ltd. with equity participation from Kinetic Group of Pune under the name '20th Century Kinetic Finance Ltd. Ahuja. The Comp. on 19th December. 287 1991 Rs. equipment. under the name '20th Century Venture Capital Corporation Ltd. 500 Rs. IL&FS Venture Corporation Ltd RC&TF Corporation IFB Venture Finance Ltd.S.The Comp.A joint venture Comp. Ltd. 300 Rs 100 1993 Rs 100 History of 20th Century Finance Corporation Ltd. at Mumbai & converted into a public Limited Comp. Another Joint Venture with Batlivala and Karani under the name `Finesse Capital Services Pvt. 240 Rs. The Comp. The Company proposed to have equity participation from Asian Development Bank. was promoted by D. Ltd. transportation & trading business & other commercial & services business. 1990 1991 Rs. processing. R.9 10 Gujarat Venture Capital Fund 20th Century Fund 11 12 13 14 15 Indus Venture Capital Fund I IL&FS Venture Fund Venture Capital Unit Scheme III IFB Venture Capital Information Technology Fund Gujarat Venture Finance Ltd. as a private limited Comp. buildings & real estate required for manufacturing.' had been incorporated mainly for financing of two wheelers. was incorporated on 31st August.Another venture capital Comp. . ICICI & Bank of Baroda. Kulkarni. 1981.