Docstoc

VC fundings

Document Sample
VC fundings Powered By Docstoc
					The greatest difficulty in the world is not for people
 to accept new ideas, but to make them forget old
                  ideas.--Tom Peters

            VENTURE CAPITAL: CHANGING THE
            FACE OF INDIAN CAPITAL MARKET
WHAT IS VC FUNDING?
   IS IT JUST THE STORY OF THE MAN WITH

  THE idea AND THE MAN WITH THE MONEY ?
VC FUNDING IS
… IT IS THE BUSINESS OF EMPLOYING CAPITAL ‘PATIENTLY’
   TO ‘MAXIMISE RETURNS’ WHILE MANAGING RISKS IN A
             RELATIVELY HIGH-RISK VENTURE

                       VERSUS

SIMPLY ‘MINIMISING RISKS’ FOR A SURER FIXED RETURN




                                       3
DEVELOPMENT IN INDIA

 The concept was introduced in India in 1987
 It was operated by ‚Industrial Development Bank of India‛.
 In the same year ‚Industrial Credit and Investment Corporation of India‛
 was also started venture capital activity.




                                                            4
VC MAINLY LOOKS AT?
 Promoter’s Integrity, Relevant Experience, Drive Level.
 Uniqueness Of Their IDEA
 Focus On/ Commitment To Their IDEA
 High Entry Barriers
 Competitive Advantages
 Good Market Size & Growth Rates
 Acceptable Geographic Location
 Appropriate Stage Of Investment




                                                           5
THE INVESTMENT PROCESS
Deal Flow Generation

      Assessment & Selection

                       Deal making

                                     Monitoring

                                                      Exit

                                                  6
REVENUE STREAM FOR VC
 Personal savings -- one can fund the business
 from personal savings or by raising personal
 loans offering one’s personal property as
 collateral security.
  Bootstrapping – One can start the business
 venture with the limited available funds, and
 then use the profits to further develop the
 business.                           7
8