Venture

capital

Presented by : Sneha

Nair
Sarita Kharabari
Deepali Shetty
Mohini Manjrekar
Ankita Mokal

CONTENTS
What

is Venture capital ?
What does Venture capitalist look while
investing ?
Objectives of Venture capitalist
Stages in Venture capital financing.
Factors affecting Venture capital
Advantages of Venture capital
Disadvantages of venture capital
Conclusion

What is Venture
capital ?
Venture

capital means funds made available

for startup firms and small businesses with
exceptional growth potential.

Venture

capital is long term risk capital to

finance high technology projects which
involve risk but at the same time has strong
potential for growth.

What does Venture capitalist

look for while investing ?
Growing
Unique
Sound

market

product

business plan.

Significant

gross profit margin

OBJECTIVES OF VENTURE
CAPITALIST

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;

Take higher risks with the expectation of higher rewards;

Have a long-term orientation

Stages in venture capital

finacing
EARLY STAGE FINANCING

SEED
CAPITAL
START UP
FINANCING

SECOUND
ROUND
LATER
STAGE
FINANCING

MEZZINE/
DEVELOPMENT CAPITAL
BRIDGE/
EXPANSION

Stages of venture capital

There are five common stages of venture capital
financing

1).The seed stage

2) .The start-up stage
3) .The second stage
4) .The third stage
5) .The Bridge/pre-public stage

Factors Affecting Venture Capital

Management of company
Business model
Competition
Time
Compelling idea
Team
Technology
siness model

ADVANTAGES OF VENTURE
CAPITAL
Economy
Investor

oriented

oriented

Entrepreneur

oriented

DISADVANTAGES FOR VENTURE CAPITAL

Management
Equity

Position-.

Position.

Business
Funding

Plan.

Plan.

CONCLUSION

The venture capital investment being risky and long term in

nature needs to be introduced effectively to enhance its
applicability to a larger extent.

Effective measures of financing pattern of venture capital

companies certainly give a boost to the efforts for setting up
such technology based companies.

Government institutions need to be more open and flexible to

work hand in hand with the other institutions for overall
development of the country with strong financial support.