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VENTURE CAPITAL

PRESENTED
BY
BABURAJ RAJESH
SINGH
ShADAaB HASAN
INTRODUCTION
 MISSIONS AND OBJECTIVES
 INDIAN VENTURE CAPITAL ASSOCIATION
 VENTURE CAPITAL OF DIFFERENT COUNTRY
 FEATURE OF VANTURE CAPITAL
 CONCEPT OF VANTURE CAPITAL
 FISCAL INCENTIVES
MISSION AND OBJECTIVE

MISSION
 Indian Venture Capital and Private Equity
Association was established in 1993 and is
based in Delhi, the capital of India. IVCA’s
mission is to promote the development of
venture capital and private equity industry
in India and to support entrepreneurial
activity and innovation. The IVCA also serves
as a powerful platform for investment funds
to interact with each other.

 
Cont…………..
 Objective

  Public Policy : Promoting sound public policy
on issues related to tax, regulation and
securities through representation to the
Securities and Exchange Board of India
(SEBI), Ministry of Finance (MoF), Reserve
Bank of India (RBI) and other Government
departments

Cont…………….
 Statistics: To collect, analyse and publish
performance information. The survey is
conducted for IVCA by Thomson Financial.
Results will be available in the IVCA
Yearbook (planned publication date  Q1
2008).


Cont…………..
 Professional Development : Provide a forum
for the professional development of
members and those interested in the
venture capital and private equity industry
through educational and training events.
IVCA has established a partnership with the
European Venture Capital Association
(EVCA), founded in 1987 and focused
exclusively on the professional development
of investment professionals

Cont………………
 Member Services : To provide the following
services:
 Website - a virtual hub of venture capital and
professional service providers
 Company and individual member listing on
IVCA’s searchable web-site with a direct link
to the firms web-site
 Annual IVCA conference (2009)
 Networking events across India
INDIAN VENTURE CAPITAL
ASSOCIATION

IVCA members comprise venture capital firms,


institutional investors, banks, incubators,
angel groups, corporate advisors, accountants,
lawyers, government bodies, academic
institutions and other service providers to the
venture capital and private equity industry.
Venture capital fund in india can
be categorized into four group
vVcfs promoted by central government controlled
development finance institution
vIFCI
vRCTFCI
Ø Vcfs promoted by the state government controlled
development finance institution
Ø GVFCL
Ø APVCL
Ø Vcfs promoted by foreign bank such as canfina
(canara finance) by canara bank ,SBI- cap by
SBI.
Ø Vcfs promoted by foreign bank and private sector
companies and financial institution.
v
CONT>>>>>>>>>>>>
 Now a day there are steady increases in the
number of venture as well as amount invest
in venture capital fund.
 Total estimate investment in year 2003 was to
be $800million
 It is increase in year 2004 near about US $1
billion.

FEATURE OF VENTURE CAPITAL
Ø Equity Participation: -Vanture capital financing is
potential participation through direct purchase of
shares option or convertible.
Ø Long term investment :-Venture capital financing
require long term investment attitude that
necessitates the vc firms (vfcs) to wait for a long
period say 5 to 10 year to make a long profit.
Ø Develop in India:-

This concept was introduce in year 1987.

It was operated by Industrial Development Bank in
india .

In same year Industrial credite and investment

Corporation of india was also started venture capital


activity.

CONCEPT OF VENTURE CAPITAL
 :Concept of Venture Capital Venture capital
finance is often though of as “the early
stage financing of new and young
enterprises seeking to grow rapidly”
FISCAL INCENTIVES
 :Fiscal Incentives Fiscal incentive have been
found to play a central role in the growth of
venture capital in the developed countries.
For Example: in USA the reduction of capital
gain tax rate from 49% to 28% and later on
to 20% gave an unprecedented boost to the
development of venture capital.
PROCESS OF VENTURE FINANCING

 Process of Venture Financing Venture capital
investment process Market Product Produce
Entrepreneurial (managerial) Expected return
Expected return.
 Decision
 Screening Evaluation Approval
 Deal Origination
 Screening
 Evaluation (due diligence)
 Deal Structuring
 Post-investment activity
 Exit Plan
DEVELOPMENT IN INDIA

 Development in India This 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. Government
started levied 5% cess on all payment
related to venture fund
 THANK
 YOU

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