Frequently Asked Questions:

1. Why is venture capital important?

2. How risky is making a venture capital
investment?
3. What percentage of a company do venture
capitalists take?
4. What is the difference between venture
capital and private equity?
5. How does a VC differ from an angel
investor?
 Six stages of financing

Seed money:
Low level financing for proving and fructifying a new idea
Start-up:
New firms needing funds for expenses related with marketing and product
development
First-Round:
Manufacturing and early sales funding
Second-Round:
Operational capital given for early stage companies which are selling products, but not
returning a profit
Third-Round:
Also known as Mezzanine financing, this is the money for expanding a newly
beneficial company
Fourth-Round:
Also called bridge financing, 4th round is proposed for financing the "going public"
process
 3 Principal Types of Venture Capital

1. Early Stage Financing

2. Expansion Financing
3. Acquisition or Buyout Financing
 Examples of venture capital funding

Kohlberg Kravis & Roberts (KKR),

Pepperfry.com
 5 Key Elements of Venture Capital

1. The Team
2. The Marketplace
3. Competitor
4. Return on Investment
5. Traction
Thank you 