VENTURE CAPITAL

Guided By
Prof. A Suresh
Submitted By
Nikhil Chhabra
Roll No 091144
HISTORY OF VC

 USA is the birth place of Venture Capital Industry, In

1946, American Research and Development
Corporation (ARD), a publicly traded, closed-end
investment company was formed. ARD's was best
known investment was the start-up financing.

 Government of India announced guidelines for Venture

Capital in India in 1988.

 SEBI framed the Venture Capital Regulations, 1996.

CONCEPTS
 Venture Capital Fund: Is a new long term investment in
growth-oriented small/medium firms, exploit market
opportunities and capital gains.

 Venture Capital Undertaking: Deals in a business which

providing services, production or manufacture, not
listed.

 Venture Capital Institution: Act a financial intermediary

by collecting funds from investors looking for high
potential returns and giving it to entrepreneurs who need
institutional capital
THE OPPORTUNITY

 High Growth in Technology and Knowledge based

Industries (KBI)
- growing fast and mostly global, less affected by
domestic issues.
 Several emerging centers of innovation – biotech,

wireless, IT, semiconductor, pharmaceutical.

 Build market leading companies in India that will serve
both global and domestic markets.
 India moving beyond supplier of low-cost services to

higher-value products.
 Quality of entrepreneurship on ascending curve
REGULATIONS
 Application fee..???
 Registration fee..??

 Minimum investment by a investor.???

 Minimum corpus of fund.??

 Invest in associated companies.???

 Investment in single VCU.???

 listed in any recognised stock exchange .??

 Advertisement for public. .???

 Seed Capital

Early Stage
Start Capital

Finance Stage
Follow On
Financing

Later stage Expansion

Replacement

Turn Around Management

Buy Out
VENTURE CAPITAL DEALS
TOP CITIES ATTRACTING VC
2007
HTTP://WWW.INDIAVCA.ORG/DEFAULT.A
SPX