Venture Capital

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venture capital

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<p>Venture capital</p> <p> Venture capital </p> <p>Presented by :-Sneha Nair Sarita Kharabari Deepali ShettyMohini ManjrekarAnkita Mokal</p> <p>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</p> <p> What is Venture capital ?Venture capital means fundsmade available forstartupfirmsandsmall businesses with exceptionalgrowthpotential. </p> <p>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. </p> <p>What does Venture capitalist look for while investing ?Growing marketUnique productSound business plan.Significant gross profit margin</p> <p>OBJECTIVES OF VENTURE CAPITALISTFinance new and rapidly growing companies;</p> <p>Purchase equity securities;</p> <p>Assist in the development of new products or services;</p> <p>Add value to the company through active participation;</p> <p>Take higher risks with the expectation of higher rewards;</p> <p>Have a long-term orientation</p> <p>Stages in venture capital finacing SEED CAPITAL START UP</p> <p> SECOUND ROUND FINANCING</p> <p> MEZZINE/ DEVELOPMENT CAPITAL</p> <p> BRIDGE/ EXPANSION</p> <p> BUYOUTS TURNAROUNDS EARLY STAGE FINANCINGLATER STAGE FINANCINGStages of venture capitalThere are five common stages of venture capital financing</p> <p>1).The seed stage2) .The start-up stage3) .The second stage4) .The third stage5) .The Bridge/pre-public stage</p> <p>Factors Affecting Venture Capital </p> <p>Management of companyBusiness modelCompetitionTimeCompelling ideaTeamTechnologysiness modelADVANTAGES OF VENTURE CAPITALEconomy oriented</p> <p>Investor oriented</p> <p>Entrepreneur oriented</p> <p>DISADVANTAGES FOR VENTURE CAPITAL</p> <p>Management Position-.</p> <p>Equity Position.</p> <p>Business Plan.</p> <p>Funding Plan. </p> <p>CONCLUSIONThe venture capital investment being risky and long term in nature needs to be introduced effectively to enhance its applicability to a larger extent.</p> <p> Effective measures of financing pattern of venture capital companies certainly give a boost to the efforts for setting up such technology based companies.</p> <p>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.</p>