The greatest difficulty in the world is not for people
to accept new ideas, but to make them forget old
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
SIMPLY ‘MINIMISING RISKS’ FOR A SURER FIXED RETURN
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.
VC MAINLY LOOKS AT?
Promoter’s Integrity, Relevant Experience, Drive Level.
Uniqueness Of Their IDEA
Focus On/ Commitment To Their IDEA
High Entry Barriers
Good Market Size & Growth Rates
Acceptable Geographic Location
Appropriate Stage Of Investment
THE INVESTMENT PROCESS
Deal Flow Generation
Assessment & Selection
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
Bootstrapping – One can start the business
venture with the limited available funds, and
then use the profits to further develop the