apna ppt vc
-
Upload
rahul-mehta -
Category
Documents
-
view
220 -
download
0
Transcript of apna ppt vc
8/2/2019 apna ppt vc
http://slidepdf.com/reader/full/apna-ppt-vc 1/29
8/2/2019 apna ppt vc
http://slidepdf.com/reader/full/apna-ppt-vc 2/29
8/2/2019 apna ppt vc
http://slidepdf.com/reader/full/apna-ppt-vc 3/29
INTRODUCTION
Venture capital means funds madeavailable for startup firms and smallbusinesses with
exceptional growth potential.
Venture capital is money provided byprofessionals who alongsidemanagement invest in young,
rapidly growing companies that havethe potential to develop intosignificant economic contributors.
8/2/2019 apna ppt vc
http://slidepdf.com/reader/full/apna-ppt-vc 4/29
VENTURE CAPITALISTS
GENERALLY
Finance new and rapidly growing
companies
Purchase equity securities
Assist in the development of new
products or services
Add value to the company through
active participation.
8/2/2019 apna ppt vc
http://slidepdf.com/reader/full/apna-ppt-vc 5/29
DIFFERENCE BETWEEN P/E &
VENTURE CAPITAL
PRIVATE EQUITY VENTURE CAPITAL
PE firms buy companies acrossall industries
VCs are focused on technology,bio-tech, and clean-tech.
PE firms almost always buy100% of a company in an LBO VCs only acquire a minoritystake – less than 50%.
PE firms make large investments– at least $100 million up intothe tens of billions for largecompanies.
VC investments are muchsmaller – often below $10million for early-stagecompanies.
PE firms use a combination of equity and debt.
VC firms use only equity
PE firms buy mature, publiccompanies
VCs invest mostly in early-stage– sometimes pre-revenue –
companies.
8/2/2019 apna ppt vc
http://slidepdf.com/reader/full/apna-ppt-vc 6/29
InitialMeetings
PrelimnaryProjectReview byVenture
Capitalist
Term SheetSigned byVentureCapitalist &
Promoters
DueDiligenceReview ofProject
Venture
Capitalist
with Funds
Promoters
with
Project
LegalDocuments/AgreementSigned
Investmentmade byVentureCapitalistin Project
Mentoring&Monitoringof Project
Divestment& ExitfromProject
Promoters
Venture
Ca italist
VENTURE CAPITAL INVESTMENT & EXIT
8/2/2019 apna ppt vc
http://slidepdf.com/reader/full/apna-ppt-vc 7/29
WHAT DO VENTURE
CAPITALISTS LOOK FOR
Growing market
Unique product
Sound business plan
Gross profit margin
8/2/2019 apna ppt vc
http://slidepdf.com/reader/full/apna-ppt-vc 8/29
• Seed financing
• Startup financing
• 1st stage financing
EARLYSTAGE
• 2nd stage financing
• Bridge financing
• 3rd stage financing (mezzanine)
EXPANTION
• Acquisition financing
• Leveraged buyout (LBO)
BUYOUT
STAGES OF VENTURE CAPITAL
8/2/2019 apna ppt vc
http://slidepdf.com/reader/full/apna-ppt-vc 9/29
VC investment process
Deal origination
Screening
Due diligence (Evaluation)
Deal structuring
Post investment activity
Exit plan
8/2/2019 apna ppt vc
http://slidepdf.com/reader/full/apna-ppt-vc 10/29
Exit route
Initialpublic
offer(IPOs)
Promoterbuy back
Acquisitionby anothercompany
8/2/2019 apna ppt vc
http://slidepdf.com/reader/full/apna-ppt-vc 11/29
Methods Of Venture Financing
Equity
Conditional loan
Income NoteOther Financing
Methods
8/2/2019 apna ppt vc
http://slidepdf.com/reader/full/apna-ppt-vc 12/29
Major
Players inVenture
Capital Firms
TomPerkin
JohnDoerr
BobKagle
HenryMcCance
8/2/2019 apna ppt vc
http://slidepdf.com/reader/full/apna-ppt-vc 13/29
REGULATION OF VENTURE CAPITAL IN INDIA
8/2/2019 apna ppt vc
http://slidepdf.com/reader/full/apna-ppt-vc 14/29
VCF are regulated by the SEBI (Venture
Capital Fund) Regulations, 1996.
The regulation clearly states that anycompany or trust proposing to carry on activityof a VCF shall get a grant of certificate from SEBI.
The SEBI Act also makes it mandatory forevery domestic VCF to obtain certificate of registration from SEBI in accordance with the
regulations.
Hence there is no way that an Indian VentureCapital Fund can exist outside SEBI Regulations.
8/2/2019 apna ppt vc
http://slidepdf.com/reader/full/apna-ppt-vc 15/29
Registration of Foreign Venture Capital Investors(FVCI) is not mandatory under the FVCI regulations.
CRITERIA:
Not more than 25% of the corpus can be invested inone VCU
Investment in Foreign Companies subject to RBIguidelines
Shall not invest in associate companies
Minimum Investment of not less than Rs.5 lakhs
8/2/2019 apna ppt vc
http://slidepdf.com/reader/full/apna-ppt-vc 16/29
Top Venture Capital
Firms In India
1. Risk Capital Technology FinanceCorporation Ltd. (RCTC)
2. Venture Capital Fund (set-up underlong-term fiscal policy of Government of India)
3. Indus Venture Capital Fund (Private
Venture Capital fund)
4. Gujarat Venture Finance Ltd.(GVFL)
8/2/2019 apna ppt vc
http://slidepdf.com/reader/full/apna-ppt-vc 17/29
Cont…
5. Credit Capital Venture Fund(promoted by internationalfinancial agencies)
6. State Bank Venture Capital Fund(promoted by SBI)
7. Can Bank Venture Capital Fund
(promoted by Canara Bank)
8. Grindlays Venture Capital Fund(promoted by Grindlays Bank)
8/2/2019 apna ppt vc
http://slidepdf.com/reader/full/apna-ppt-vc 18/29
Venture capital funds
in India
VCFs in India can be categorized into followingfive groups:
1) Those promoted by the Central Governmentcontrolled development finance institutions.For example:
- ICICI Venture Funds Ltd.
- IFCI Venture Capital Funds Ltd (IVCF)
- SIDBI Venture Capital Ltd (SVCL)
8/2/2019 apna ppt vc
http://slidepdf.com/reader/full/apna-ppt-vc 19/29
2) Those promoted by StateGovernment controlleddevelopment finance institutions.
For example:- Punjab Infotech Venture Fund- Gujarat Venture Finance Ltd (GVFL)
- Kerala Venture Capital Fund PvtLtd.
3) Those promoted by public banks.For example:
- Canbank Venture Capital Fund- SBI Capital Market Ltd
8/2/2019 apna ppt vc
http://slidepdf.com/reader/full/apna-ppt-vc 20/29
4)Those promoted by private sector
companies.
For example:
- IL&FS Trust Company Ltd- Infinity Venture India Fund
5)Those established as an overseas venture
capital fund.For example:
- Walden International Investment Group
- HSBC Private Equity management
Mauritius Ltd
8/2/2019 apna ppt vc
http://slidepdf.com/reader/full/apna-ppt-vc 21/29
QUESTIONSS????
Q) For how long do venture capitalists investin a business??
Q) Post VC investment??
Q) WHAT DOES VC looks for??
Q) What a project must have??
Q) What a VC does??
8/2/2019 apna ppt vc
http://slidepdf.com/reader/full/apna-ppt-vc 22/29
Venture capital beats private equity as
Indian start-ups attract millions of dollars
in funding
RECENT SCENARIO
8/2/2019 apna ppt vc
http://slidepdf.com/reader/full/apna-ppt-vc 23/29
8/2/2019 apna ppt vc
http://slidepdf.com/reader/full/apna-ppt-vc 24/29
8/2/2019 apna ppt vc
http://slidepdf.com/reader/full/apna-ppt-vc 25/29
Venture capital industry wise
segmentation
8/2/2019 apna ppt vc
http://slidepdf.com/reader/full/apna-ppt-vc 26/29
8/2/2019 apna ppt vc
http://slidepdf.com/reader/full/apna-ppt-vc 27/29
8/2/2019 apna ppt vc
http://slidepdf.com/reader/full/apna-ppt-vc 28/29
PRIVATE EQUITY VENTURE CAPITAL
VC Circle Survey: 12-13 To Be A GoodVintage Year For PE/VC Funds
8/2/2019 apna ppt vc
http://slidepdf.com/reader/full/apna-ppt-vc 29/29