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the venture capital financing refers to the financing of new high risky venture promoted by qualified entrepreneurs who

lack experience and funds to give shape their ideas and render advisory services to their managements. in a bread sense ,under venture capital financing, venture capitalist make investment to purchase equity or dept securities from unexperienced entrepreneurs who undertake highly risky venture with potential of success.

features of venture capital financing 1. it support entrepreneurial talent by providing finance and business management skills. 2. it is an equity form of investment. 3. venture capital is a one form of long term investment services and also it generate long term capital gains. 4. it provides technical financial and administrative services to the new entrepreneurs and also the existing entrepreneurs.

process of capital financimg the venture capital activity is a sequential process involving the following six steps deal organization: a continuous flows of deal is essential for the venture capital business. deals may original I various ways such as referral system, active search and untermediaries. screening: screening is a select the best ventures before going for an in-dept analysis.i.e product, market scope,technology geographical etc. evaluation: evaluation is a measure of various risk in related business. i.e product risk, technological risk, entrepreneurial risk, etc. deal structuring: once the venture has been evaluated as viable. the venture capitalist and the venture company negotiate the terms of the deal viz the amount, form and price o f the investment. post investment activities: once the deal has been structured and agreement finalized, the venture capitalist generally assumes the role of a partner and collaborator. he also gets involved in shaping the direction of the venture.

exit plan: venture capitalists typically aim at making medium to long-term apital gains. a venture may exist in one of the following ways: a) initial public offering b) acquisition by another company c) purchase of the venture capitalists share by the promoter.

process of venture capital financing deal organization screening evaluation deal structuring post investment activity exist plan

project financing: project financing is a financing of a particular economic unit in which the gender is satisfied in looking as the cash flows and e earnings of the economic unit as a source of funds, from which a loan can be repaid and to the assets of the economic unit as a collateral for the loan project financing was mostly used in oil, mineral power and telecommunication project etc,. seed capital: at the crime of financing a project financial institutions always insis what the promoter should contribute a minimum amount, called promoters contribution towards the projects. but there are umber of technically qualified entrepreneurs who lack f financial capability to provide the required amount of contribution. the financial institutions has opened schemes to provide such funds to the eligible entrepreneurs. there are at present two schemes in operation. special scheme capital assistance scheme. euro-issues: euro-issues means the issue which is listed on European stock exchange, the subscription for which may come from any part of the word other than india. the most common source of euro-issues include,

a) foreign currency convertible funds b) pure depts. fund c) commercial bon paper etc.