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Venture capital

Venture capital

Presented by :-Sneha Nair Sarita Kharabari Deepali ShettyMohini ManjrekarAnkita Mokal

CONTENTS What is Venture capital ?What does Venture capitalist look while investing ?Objectives of Venture capitalistStages in Venture capital financing.Factors affecting Venture capitalAdvantages of Venture capitalDisadvantages of venture capitalConclusion

What is Venture capital ?Venture capital means fundsmade available forstartupfirmsandsmall businesses with exceptionalgrowthpotential.

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 marketUnique productSound business plan.Significant gross profit margin

OBJECTIVES OF VENTURE CAPITALISTFinance 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 SEED CAPITAL START UP

SECOUND ROUND FINANCING

MEZZINE/ DEVELOPMENT CAPITAL

BRIDGE/ EXPANSION

BUYOUTS TURNAROUNDS EARLY STAGE FINANCINGLATER STAGE FINANCINGStages of venture capitalThere are five common stages of venture capital financing

1).The seed stage2) .The start-up stage3) .The second stage4) .The third stage5) .The Bridge/pre-public stage

Factors Affecting Venture Capital

Management of companyBusiness modelCompetitionTimeCompelling ideaTeamTechnologysiness modelADVANTAGES OF VENTURE CAPITALEconomy oriented

Investor oriented

Entrepreneur oriented

DISADVANTAGES FOR VENTURE CAPITAL

Management Position-.

Equity Position.

Business Plan.

Funding Plan.

CONCLUSIONThe 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.