Venture Capital INTRODUCTION Venture

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Venture capital is a type of private equity capital typically provided by professional,
outside investors to new, growth businesses. Generally made as cash in exchange for
shares in the invested company, venture capital investments are usually high risk, but
offer the potential for above-average returns. A venture capitalist (VC) is a person who
makes such investments. A venture capital fund is a pooled investment vehicle (often a
limited partnership) that primarily invests the financial capital of third-party investors in
enterprises that are too risky for the standard capital markets or bank loans. Venture
capital can also include managerial and technical expertise. Most venture capital comes
from a group of wealthy investors, investment banks and other financial institutions that
pool such investments or partnerships. This form of raising capital is popular among new
companies, or ventures, with limited operating history, who cannot raise funds through a
debt issue. The downside for entrepreneurs is that venture capitalists usually get a say in
company decisions, in addition to a portion of the equity.

 Venture capital has attracted increasing attention in both the popular press and academic
literature. It is alternately described as the engine fueling innovation in the US economy
and as the industry that fueled the boom and bust of the Internet era. The recent dramatic
growth and subsequent decline in the venture capital industry during the past decade has
been accompanied by new academic research that explores its form and function. This
research has increasingly shown that far from being a destabilizing factor in the economy,
the venture capital industry, while relatively small compared to the public markets, has
had a disproportionately positive impact on the economic landscape. There are several
critical research questions, however, that still need to be addressed. This includes the
extent to which the US venture capital model will be transferred outside of the US and
measuring risk and return in the venture capital sector. Thus, this chapter has a two-fold
role: to summarize and synthesize what is known about the nature of venture capital
investing from recent research and to raise several areas that have yet to be fully

The current view from the existing research is that that venture capital has developed as
an important intermediary in financial markets, providing capital to firms that might
otherwise have difficulty attracting financing. These young firms are plagued by high
levels of uncertainty and large differences in what entrepreneurs and investors know,
possess few tangible assets, and operate in markets that can and do change very rapidly.
The venture capital process can be seen as having evolved useful mechanisms to
overcome potential conflicts of interest at each stage of the investment process. At the
same time, the venture capital process is also subject to various pathologies from time to
time. Various researchers have documented periods of time and settings in which these
imbalances have created problems for investors or entrepreneurs. A natural first question
is what constitutes venture capital. Venture capital is often interpreted as many different
kinds of investors. Many start-up firms require substantial capital. A firm‘s founder may
not have sufficient funds to finance these projects alone and therefore must seek outside
financing. Entrepreneurial firms that are characterized by significant intangible assets,
expect years of negative earnings, and have uncertain prospects are unlikely to receive
bank loans or other debt financing.

Venture capital organizations finance these high-risk, potentially high-reward projects,
purchasing equity or equity-linked stakes while the firms are still privately held. At the
same time, not everyone who finances these types of firms is a venture capitalist. Banks,
individual investors (or ―angels‖), and corporations are among the other providers of
capital for these firms.

Venture capital is the capital that is invested in equity or debt securities (with equity
conversion terms) of young unseasoned companies promoted by technocrats who attempt
to break new path. It is a source of finance for new or relatively new, high risk, high
profit potential products as the projects to obtain finance from conventional sources. The
venture capitalists step-in to fill this gap. The venture capitalists are knowledgeable and
sophisticated investors who come forward to face higher risks with the calculated hope of
making higher gains when the new projects succeed. They work on the theory that the
greater the risk, the greater will be the profit. The success of a venture capital project
depends on the care with which the projects are evaluated and selected for investment and
the trust in the capabilities of the promoters in making a success of their projects. Venture
capitalists take faster decision in appraising projects and releasing funds than Banks and

VENTURE CAPITAL refers to an equity related investment in a growth oriented small/
medium business to enables the investors to accomplish corporate objectives, in return
for monetary shareholding in the business to acquire it. It is a typical ― private equity
investment. It is a popular method by which investors support entrepreunial talent with
finance and business skills to exploit market opportunities with a view to obtaining long
term capital gains. It involves the provision of risk bearing capital, usually in the form of
equity participation, to companies with high growth potential.

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. Venture capitalist pool
their resources including managerial abilities to assist new entrepreneurs in the early
years of the project. Once the project reaches the stage of profitability, they sell their
equity holdings at high premium.

A venture capital company is defined as ―a financing institution which joins an
entrepreneur as a co-promoter in a project and shares the risks and rewards of the

According to the Bank of England Quarterly Bulletin of 1984, ― Venture Capital
investment is defined as an activity by which investors support entrepreneurial talent with
finance and business skills to exploit market opportunities and thus obtain long-term
capital gains.‖

The term ‗Venture Capital‘ is understood in many ways. In a narrow sense, it refers to,
investment in new and tried enterprises that are lacking a stable record of growth.

In a broader sense, venture capital refers to the commitment of capital as shareholding,
for the formulation and setting up of small firms specializing in new ideas or new
technologies. It is not merely an injection of funds into a new firm, it is a simultaneous
input of skill needed to set up the firm, design its marketing strategy and organize and
manage it. It is an association with successive stages of firm‘s development with
distinctive types of financing appropriate to each stage of development.

VC financing was first introduced in India during 1975 with the setting up of IFCI-
sponsored risk capital foundation in1976, a seed capital scheme was introduced by the
IDBI. Till1984, the VC took the form of risk & seed capital. A VC fund was set up by
government of India in 1985 for providing equity capital for project attempting
commercial applications of the indigenous technology.

The first comprehensive guidelines governing the VC funds were formulated in 1988-
89.even under these guidelines, only AIFIs & SCBs were allowed to set up VC funds. It
was only later that private overseas & domestic VC began investing. Such investments
were facilitated by the announcement of the first SBI guideline during 1996 for
registration & investment by a VC firm. However till 1999 the development of VC
continue to be inhibited because of lack amongst VC & cumbersome regulatory regime.
Funds that could be invested were less than 50% of the committed fund & actual
investment were lower.

Venture capital that oriented in India very late, is still in its infancy. It was the Bhatt
Committee (committee on development of small and medium entrepreneurs) in the year
1972, which recommended the creation of venture capital. The committee urged the need
for providing such capital to help new entrepreneurs and technologist in setting up
industries. A brief description of same of the venture capital funds of India is as follows:

1.Risk capital foundation: the Industrial Finance Corporation of India (IFCI) launched
the first venture capital fund in the year 1975. the fund, ‗Risk Capital Foundation‘ (RCF)
aimed at supplementing ‗promoters equity‘ with a view to encouraging technologists and
professionals to promote new industries.

2. Seed capital scheme: this venture capital fund was launched by IDBI in 1976, with the
same objective in mind.

3.Venture capital scheme: venture capital funding obtained patronage with the
announcement by the Central Government of the ‗Technology Policy Statement‘ in 1983.
It prescribed guidelines for achieving technological self-reliance through
commercialization and exploitation of technologies. The ICICI, an all-India financial
institution in the private sector set up a venture capital scheme in 1986, to encourage new

technocrats in the private sector to enter new fields of high technology with inherent high
risk. The scheme aimed at allocating funds for providing assistance in the form of venture
capital to economic activities risk, but also high profit potential.

4. PACT: the ICICI undertook the administration of program for application of
commercial technology (PACT), aided by USAID with an initial grant of U.S.$ 10
million. The program aims at financing specific needs of the corporate sector industrial
units along the lines if venture capital funding.

5.Government fund: IDBI, as model agency, administers the venture capital fund
created by the Central Government with effect April 1, 1986. the government started
imposing a Research and Development (R&D) levy on all payments made for the
purchase of technology from abroad, including royalty payments, lump sum payments for
foreign collaboration and payment for designs and drawings under the R&D Cess Act,
1986. the levy was used as a source of funding the venture capital fund.

6.TDICI: in 1988, an ICICI sponsored company, viz. Technology Development and
Information Company of India Ltd. (TDICI) was founded, and venture capital operations
of ICICI were taken over by it with effect from July 1, 1988.

7.RCTFC: the Risk Capital Foundation (RCF) sponsored by IFCI was converted into
Risk Capital and Technology Finance Corporation Ltd. (RCTFC) in the year 1988. it took
over the activities of RCF, in addition to the management of other financing technology
development schemes and venture capital fund.

8.VECAUS: VECAUS -I, the UTI sponsored ‗venture Capital Unit Schemes‘ was
launched in the year 1989. technology Development and Information Company of India
Ltd. (TDICI) was appointed as its managers. In the year 1990, the corporation was also
entrusted with the responsibility of managing another UTI sponsored venture fund
entitled ‗VECAUS-II‘. In 1991, UTI launched VECAUS-III and RCTC was appointed as
fund manager.

9.Other funds: the liberalized guidelines introduced by the government, in 1988, gave
rise to the setting up of a number of venture capital funds, especially in the private sector.

Venture capital may take various forms at different stages of the project. There are four
successive stages of development of a project viz. development of a project idea,
implementation of the idea, commercial production and marketing and finally large scale
investment to exploit the economics of scale and achieve stability. Financial institutions
and banks usually start financing the project only at the second or third stage but rarely
from the first stage. But venture capitalists provide finance even from the first stage of
idea formulation. The various stages in the financing of venture capital are described

   (1) Development of an Idea- Seed Finance: In the initial stage venture capitalists
       provide seed capital for translating an idea into business proposition. At this stage
       investigation is made in depth which normally takes a year or more.

   (2) Implementation Stage- Start up Finance: When the firm is set up to
       manufacture a product or provide a service, start up finance is provided by the
       venture capitalists. The first and second stage capital is used for full scale
       manufacturing and further business growth.

   (3) Fledging Stage- Additional Finance: In the third stage, the firm has made some
       headway and entered the stage of manufacturing a product but faces teething
       problems. It may not be able to generate adequate funds and so additional round
       of financing is provided to develop the marketing infrastructure.

   (4) Establishment Stage- Establishment Finance: At this stage the firm is
       established in the market and expected to expand at a rapid pace. It needs further
       financing for expansion and diversification so that it can reap economies of scale
       and attain stability. At the end of establishment stage, the firm is listed on the
       stock exchange and at this point the venture capitalist disinvests their
       shareholdings through available exit routes.

Before investing in small, new or young hi-tech enterprises, the venture capitalist look for
percentage of key success factors of a venture capital project. They prefer projects that
address these problems. After assessing the viability of projects, the investors decide for
what stage they should provide venture capital so that it leads to greater capital
appreciation. All the above stages of finance involve varying degrees of risks and venture
capital industry, only after analyzing such risks, invest in one or more. Hence they
specialize in one or more but rarely all.

The venture capital industry was a predominantly American phenomenon in its initial
decades. It had its origins in the family offices that managed the wealth of high net worth
individuals in the last decades of the nineteenth century and the first decades of this
century. Wealthy families such as the Phippes, Rockefellers, Vanderbilts, and Whitneys
invested in and advised a variety of business enterprises, including the predecessor
entities to AT&T, Eastern Airlines, and McDonald-Douglas. Gradually, these families
began involving outside professional managers to select and oversee these investments.
The first venture capital firm satisfying the criteria delineated above, however, was not
established until after World War II. MIT President Karl Compton, Harvard Business
School Professor Georges F. Doriot, and local Boston business leaders formed American
Research and Development (ARD) in 1946. This small group of venture capitalists made
high-risk investments into emerging companies that were based on technology developed
for World War II. The success of the investments ranged widely: almost half of ARD's
profits during its 26-year existence as an independent entity came from its $70,000
investment in Digital Equipment Company (DEC) in 1957, which grew in value to $355
million. Because institutional investors were reluctant to invest, ARD was structured as a
publicly traded closed-end fund and marketed mostly to individuals (Liles (1977)). The

few other venture organizations begun in the decade after ARD's formation were also
structured as closed-end funds.

The closed-end fund structure employed by these funds had some significant advantages
that made them more suited to venture capital investing than the more familiar open-end
mutual funds. While the funds raised their initial capital by selling shares to the public,
the funds did not need to repay investors if they wished to no longer hold the fund.
Instead, the investors simply sold the shares on a public exchange to other investors. This
provision allowed the fund to invest in illiquid assets, secure in the knowledge that they
would not need to return investors‘ capital in an uncertain time frame. Most importantly,
because it was a liquid investment that could be freely bought or sold, Security and
Exchange Commission regulations did not preclude any class of investors from holding
the shares.

The publicly traded structure, however, was soon found to have some significant
drawbacks as well. In a number of cases, brokers sold the funds to inappropriate
investors: i.e., elderly investors who had a need for high current income rather than long-
term capital gains. When the immediate profits promised by unscrupulous brokers did not
materialize, these investors vented their frustration at the venture capitalists themselves.
For instance, much of General Doriot‘s time during the mid-1950s was spent addressing
investors who had lost substantial sums on their shares of American Research and
Development. The first venture capital limited partnership, Draper, Gaither, and
Anderson, was formed in 1958. Unlike the closed-end funds, partnerships were exempt
from securities regulations, including the exacting disclosure requirements of the
Investment Company Act of 1940. The set of the investors from which the funds could
raise capital, however, was much more restricted. The interests in a given partnership
could only be held by a limited number of institutions and high net-worth individual

The Draper partnership and its followers applied the template of other limited
partnerships: e.g., to develop real estate projects and explore oil fields. The partnerships
had pre-determined, finite lifetimes (usually ten years, though extensions were often
allowed). Thus, unlike closed-end funds, which often had indefinite lives, the
partnerships were required to return the assets to investors within a set period. From the
days of the first limited partnerships, these distributions were typically made in stock.
Rather than selling successful investments after they went public and returning cash to
their investors, the venture capitalists would simply give them their allocation of shares in
the company in which the venture firm had invested. In this way, the investors could
choose when to realize the capital gains associated with the investment. This feature was
particular important for individuals and corporate investors, as they could arrange the
sales in a manner that would minimize their capital gains tax obligation. While imitators
soon followed, limited partnerships accounted for a minority of the venture pool during
the 1960s and 1970s. Most venture organizations raised money either through closed-end
funds or small business investment companies (SBICs), federally guaranteed risk capital
pools that proliferated during the 1960s. While the market for SBICs in the late 1960s
and early 1970s was strong, the sector ultimately collapsed in the 1970s.

The combination of federal guarantees and limited scrutiny of applicants led to scenario
that foreshadowed the savings and loan crisis of the 1980s. Unscrupulous and naïve
operators were frequently granted SBIC licenses. Frequently, their investments proved to
be either in firms with poor prospects or in outright fraudulent enterprises. Activity in the
venture industry increased dramatically in late 1970s and early 1980s. Prior to this year,
the Employee Retirement Income Security Act (ERISA) limited pension funds from
investing substantial amounts of money into venture capital or other high-risk asset
classes. The Department of Labor's clarification of the rule explicitly allowed pension
managers to invest in high-risk assets, including venture capital. In 1978, when $424
million was invested in new venture capital funds, individuals accounted for the largest
share (32 percent). Pension funds supplied just 15 percent. Eight years later, when more
than $4 billion was invested, pension funds accounted for more than half of all
contributions. The subsequent years saw both very good and very trying times for venture
capitalists. On the one hand, venture capitalists backed many of the most successful high
technology companies during the 1980s and 1990s, including Apple Computer, Cisco
Systems, Genentech, Microsoft, Netscape, and Sun Microsystems. A substantial number
of service firms (including Staples, Starbucks, and TCBY) also received venture

As investors became disappointed with returns, they committed less capital to the
industry. This pattern reversed dramatically in the 1990s, which saw rapid growth in
venture fundraising. The explosion of activity in the IPO market and the exit of many
inexperienced The annual commitments represent pledges of capital to venture funds
raised in a given year. This money is typically invested over three to five years starting in
the year the fund is formed. venture capitalists led to increasing venture capital returns.
New capital commitments rose in response, increasing by more than twenty times
between 1991 and 2000. While previous investment surges have been associated with
falling venture capital returns, this expansion in fundraising saw a rise in the returns to
venture funds. Much of the growth in fundraising was fueled by public pension funds,
many of which entered venture investing for the first time in a significant way. The
explosion in venture capital investing was also driven by two other classes of investors:
corporations and individuals. While the late 1960s and mid 1980s had seen extensive
corporate experimentation with venture funds, the late 1990s saw an unprecedented surge
of activity. The determinants of this increase were various. Some were similar to those in
earlier waves of corporate venturing activity.

This rapid rise in venture capital investing, however, gave way to just as rapid a deflation
in venture capital investment activity. The causes of the decline are myriad. Some have
commented on the overshooting of the venture industry and how the level of investment
activity in 1999 and 2000 was driven up by irrational sentiment towards technology
stocks. This sentiment fueled the rise in public equity values and the IPO market. When
the business model for many of the startup companies, especially Internet- related firms,
failed to deliver profits, investors began to realize that valuation levels assigned to these
companies did not make rational sense. In addition, corporations which had fueled much
of the purchasing of new technology suddenly found themselves with excess capacity and
slow end user demand. Technology spending by these companies quickly dried up and

startups no longer had markets for their products. This decline in spending was protracted
and many venture capital-backed startups could not recover.

Finally, the venture capital industry itself contributed to the overshooting and subsequent
decline. Many venture capital firms played ―follow the leader‖ strategies and invested in
companies that were too similar to one another. This meant that even in attractive
markets, product prices were driven down to unprofitable levels. Good ideas and good
companies failed because the size of the markets addressed could not support the level of
investment activity that took place in 1999 and 2000. These factors led to a rise in
venture capital-backed company failures and a rapid write-down in investment values. As
fund portfolio values declined, interim internal rates of return became negative and
investment levels declined. In the aftermath of the retrenchment, many venture capital
firms decided to reduce the amount of capital that they had raised, essentially foregoing
commitments that their investors had made to their funds. As the investment pace slowed,
the level of fundraising declined even more dramatically. While fundraising in the past
few years has begun to recover, how far it rises and whether it reaches the speculative
levels of 1999 and 2000 is an open question.

Venture capital can be used as a tool for economic development, putting money into
business start-ups and smaller companies looking to expand. In Latin American and
Caribbean countries with less developed financial sectors, venture capital plays a key role
in facilitating access to finance for newly established and growing small and medium
enterprises (SMEs), which although they make up the bulk of the region‘s economy,
often do not have the collateral necessary to get a bank loan. VC in the Region also helps
to stimulate an entrepreneurial culture, create jobs and improve companies‘ corporate
governance and accounting standards.

Supporting venture capital funds in Latin American and Caribbean countries can bring a
host of benefits, including the financial and marketing know-how of new investors, and
patent protections that can help businesses cope in the critical years when they are
growing and expanding. It is clear that once the venture capital industry takes root, a
series of actions begins to unfold, from greater support for entrepreneurs and
improvements in the legal and regulatory environment to capital market development.

A pioneer in developing the region‘s venture capital industry, the Multilateral Investment
Fund (MIF) of the Inter-American Development Bank, has injected capital in
approximately 40 venture capital funds. By investing in a particular fund, MIF seeks to
attract other investors that may be new to the industry, but can rely on MIF expertise in
this area. This helps to put Latin American and Caribbean businesses and industries on
the radar of private sector investors, bringing vital local and outside capital into the
Region. MIF has also played a leading role in investing in sectors that were previously
unknown to the market, such as eco-friendly investments, clean technologies and
renewable energy.

Also pivotal has been MIF‘s active cooperation with the public and private sectors in
promoting regulatory changes to make the region‘s markets more attractive to local and

international private sector investors. Together with MIF, the Latin American Venture
Capital Association (LAVCA), will work with other venture capital associations in the
Region to push for changes in the legal and regulatory environment in order to improve
the business climate.

In 1978, the US Labor Department reinterpreted ERISA legislation and thus enabled this
major pool of pension fund money to invest in alternative assets classes such as venture
capital firms. Venture capital financing took off. 1983 was the boom year - the stock
market went through the roof and there were over 100 initial public offerings for the first
time in U.S. history. That year was also the year that many of today's largest and most
prominent VC firms were founded.

Due to the excess of IPOs and the inexperience of many venture capital fund managers,
VC returns were very low through the 1980s. VC firms retrenched, working hard to make
their portfolio companies successful. The work paid off and returns began climbing back

The late 1990s were a boom time for the globally-renowned VC firms on Sand Hill Road
in the San Francisco Bay Area. A number of large IPOs had taken place, and access to
"friends and family" shares was becoming a major determiner of who would benefit from
any such IPO; Common investors would have had no chance to invest at the strike price
in this stage. The NASDAQ crash and technology slump that started in March 2000
shook some VC funds significantly by the resulting disastrous losses from overvalued
and non-performing startups. By 2003 many firms were forced to write off companies
they had funded just a few years earlier, and many funds were found "under water"; (the
market value of their portfolio companies were less than the invested value) Venture
capital investors sought to reduce the large commitments they had made to venture
capital funds. By mid-2003, the venture capital industry would shrivel to about half its
2001 capacity. Nevertheless, PricewaterhouseCoopers' MoneyTree Survey shows that
total venture capital investments hold steady at 2003 levels through the second quarter of

Venture capital general partners (also known in this case as "venture capitalists" or
"VCs") are the executives in the firm, in other words the investment professionals.
Typical career backgrounds vary, but many are former chief executives at firms similar to
those which the partnership finances and other senior executives in technology

Investors in venture capital funds are known as limited partners. This constituency
comprises both high net worth individuals and institutions with large amounts of
available capital, such as state and private pension funds, university financial
endowments, foundations, insurance companies, and pooled investment vehicles, called
fund of funds.

Other positions at venture capital firms include venture partners and entrepreneur-in-
residence (EIR). Venture partners "bring in deals" and receive income only on deals they
work on (as opposed to general partners who receive income on all deals). EIRs are
experts in a particular domain and perform due diligence on potential deals. EIRs are
engaged by VC firms temporarily (six to 18 months) and are expected to develop and
pitch startup ideas to their host firm (although neither party is bound to work with each
other). Some EIR's move on to roles such as Chief Technology Officer (CTO) at a
portfolio company. According to the National Venture Capital Association the typical
individual believes that a venture capitalist is a rich individual ready to invest in a new
business venture, an investment into a "change-the-world" idea. On the contrary the
investors look for a high interest yielding opportunity.

Venture Capital may be a viable source of financing for a business. While they generally
invest in businesses that are more established and ongoing, some do fund start-ups. In
general they tend to invest in high-technology businesses such as research and
development, electronics and computers. Venture Capitalists deal more in large sums of
money, numbering into the millions of dollars, so they are generally well suited to
businesses that are going grand from the start or have grown and require gigantic

As discussed in Private Equity Funds: Business Structure and Operations, venture capital
investing involves the provision of capital to business enterprises in the early stages of
the development of new products or services. Venture capital investing was especially
prominent throughout the 1990s, with the boom and the subsequent collapse of
speculative interest in computer and information technology, Internet and
communications sectors.

Most venture capital funds have a fixed life of 10 years, with the possibility of a few
years of extensions to allow for private companies still seeking liquidity. The investing
cycle for most funds is generally three to five years, after which the focus is managing
and making follow-on investments in an existing portfolio. This model was pioneered by
successful funds in Silicon Valley through the 1980s to invest in technological trends
broadly but only during their period of ascendance, and to cut exposure to management
and marketing risks of any individual firm or its product.

In such a fund, the investors have a fixed commitment to the fund that is "called down"
by the VCs over time as the fund makes its investments. There are substantial penalties
for a Limited Partner (or investor) that fails to participate in a capital call.

Venture capital has emerged as an important intermediary in financial markets, providing
capital to young high-technology firms that might have otherwise gone unfunded.
Venture capitalists have developed a variety of mechanisms to overcome the problems
that emerge at each stage of the investment process. At the same time, the venture capital
process is also subject to various pathologies from time to time, which can create

problems for investors or entrepreneurs. This handbook chapter reviews the recent
empirical literature on these organizations and points out area where further research is

VENTURE   CAPITAL                      FUND          GENERALLY                PROVIDES
      Finance new and rapidly growing companies
      Typically knowledge-based, sustainable, up scaleable companies
      Purchase equity/quasi-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

VCs are organizations raising funds from numerous investors and hiring experienced
professional managers to deploy the same. They typically: invest at ‗second‘ stage invest
over a spectrum over industries have hand-holding ‗mentor‘ approach insist on detailed
business plans invest into proven ideas/businesses provide ‗brand‘ value to invest
between USD 2-5 million.

In a typical venture capital fund, the general partners receive an annual management fee
equal to 2% of the committed capital to the fund and 20% of the net profits (also known
as "carried interest") of the fund; a so-called "two and 20" arrangement, comparable to
the compensation arrangements for many hedge funds. Strong Limited Partner interest in
top-tier venture firms has led to a general trend toward terms more favorable to the
venture partnership, and many groups now have carried interest of 25-30% on their
funds. Because a fund may run out of capital prior to the end of its life, larger VCs
usually have several overlapping funds at the same time; this lets the larger firm keep
specialists in all stages of the development of firms almost constantly engaged. Smaller
firms tend to thrive or fail with their initial industry contacts; by the time the fund cashes
out, an entirely-new generation of technologies and people is ascending, whom the
general partners may not know well, and so it is prudent to reassess and shift industries or
personnel rather than attempt to simply invest more in the industry or people the partners
already know.

Venture capital is not generally suitable for all entrepreneurs. Venture capitalists are
typically very selective in deciding what to invest in; as a rule of thumb, a fund may
invest in as few as one in four hundred opportunities presented to it. Funds are most
interested in ventures with exceptionally high growth potential, as only such
opportunities are likely capable of providing the financial returns and successful exit
event within the required timeframe (typically 3-7 years) that venture capitalists expect.

This need for high returns makes venture funding an expensive capital source for
companies, and most suitable for businesses having large up-front capital requirements
which cannot be financed by cheaper alternatives such as debt. That is most commonly
the case for intangible assets such as software, and other intellectual property, whose
value is unproven. In turn this explains why venture capital is most prevalent in the fast-
growing technology and life sciences or biotechnology fields.

If a company does have the qualities venture capitalists seek such as a solid business
plan, a good management team, investment and passion from the founders, a good
potential to exit the investment before the end of their funding cycle, and target minimum
returns in excess of 40% per year, it will find it easier to raise venture capital.

Because of the strict requirements venture capitalists have for potential investments,
many entrepreneurs seek initial funding from angel investors, who may be more willing
to invest in highly speculative opportunities, or may have a prior relationship with the

Furthermore, many venture capital firms will only seriously evaluate an investment in a
start-up otherwise unknown to them if the company can prove at least some of its claims
about the technology and/or market potential for its product or services. To achieve this,
or even just to avoid the dilutive effects of receiving funding before such claims are
proven, many start-ups seek to self-finance until they reach a point where they can
credibly approach outside capital providers such as VCs or angels. This practice is called

There has been some debate since the dot com boom that a "funding gap" has developed
between the friends and family investments typically in the $0 to $250,000 range and the
amounts that most Venture Capital Funds prefer to invest between $1 to $2m. This
funding gap may be accentuated by the fact that some successful Venture Capital funds
have been drawn to raise ever-larger funds, requiring them to search for correspondingly
larger investment opportunities. This 'gap' is often filled by angel investors as well as
equity investment companies who specialize in investments in startups from the range of
$250,000 to $1m. The National Venture Capital association estimates that the latter now
invest more than $30 billion a year in the USA in contrast to the $20 billion a year
invested by organized Venture Capital funds.

In industries where assets can be securitized effectively because they reliably generate
future revenue streams or have a good potential for resale in case of foreclosure,
businesses may more cheaply be able to raise debt to finance their growth. Good
examples would include asset-intensive extractive industries such as mining, or
manufacturing industries. Offshore funding is provided via specialist venture capital
trusts which seek to utilise securitization in structuring hybrid multi market transactions
via an SPV (special purpose vehicle): a corporate entity that is designed solely for the
purpose of the financing.

In addition to traditional venture capital and angel networks, groups such as The Angel
Project have emerged which allow groups of small investors or entrepreneurs themselves
to compete in a privatized business plan competition where the group itself serves as the
investor through a democratic process.

These Regulations were notified by SEBI in exercise of the powers conferred by section
30 of SEBI Act, 1992 and took effect from 4th December 1996.

‗Venture Capital Fund‘ under the Regulations means a fund established in the form of a
trust or a company including a body corporate and registered under these regulations
which- has a dedicated pool of capital raised in a manner specified in the regulations, and
invests in venture capital undertaking in accordance with the regulations. Trust for the
purpose means a trust established under the Indian Trust Act, 1882 or under an Act of
Parliament or State Legislation. Unit means beneficial interest of the investors in the
scheme or fund floated by trust or shares issued by a company including a body

Venture capital undertaking means a domestic company- whose shares are not listed on a
recognized stock exchange in India; which is engaged in the business for providing
services, production or manufacture of article or things or does not include such activities
or sectors which are specified in the negative list by SEBI with the approval of the
Central Government by notification in the Official Gazette in this behalf.

Any company or trust or a body corporate in order to carry on any activity as a venture
capital fund on or after the commencement of the regulations have to make an application
to SEBI for grant of a certificate. An application for grant of certificate should be made to
SEBI in the prescribed form accompanied by a non-refundable application fee as
specified. Any company or a body corporate who fails to make an application for grant of
a certificate within the period specified should cease to carry on any of its activity as a
venture capital fund.

The applicant for registration as venture capital fund should fulfill the following
(1) If the application is made by a company, -
     Memorandum of association has as its main objective, the carting on of the
         activity of a venture capital fund;
     It is prohibited by its memorandum and articles of association from making an
         invitation to the public to subscribe to its securities;
     Its director or principal officer or employee is not involved in any litigation
         connected with the securities market which may have an adverse bearing on the
         business of the applicant;
     Its directors, principal officer or employee has not at any time been convicted of
         any offence involving moral turpitude or any economic offence.

      It is a fit and proper person.

(2) If the application is made by a trust, -
     The instrument of trust is in the form of a deed and has been duly registered under
         the provisions of the Indian registration act, 1908 (16of 1908);
     The main object of the trust is to carry on the activity of a venture capital fund;
     The directors of its trustee company, if any, or any trustee is not involved in any
         litigation connected with the securities market which may have an advanced
         bearing on the business of the applicant;
     The directors of its trustee company, if any, or a trustee has not at any time, been
         convicted of any offence involving moral turpitude or of any economic offence;
     The applicant is a fit and proper person.

(3) If the application is made by a body corporate
     It is set up or established under the laws of the Central pr State Legislature.
     The applicant is permitted to carry on the activities of a venture capital fund.
     The applicant is a fit and proper person.
     The directors or the trustees, as the case may be, of such body corporate have not
         been convicted of any offence involving moral turpitude or of any economic
     The directors or the trustees, as the case may be, of such body corporate, if any, is
         not involved in any litigation connected with the securities market which may
         have an adverse bearing on the business of the applicant.

(4) The applicant has not been refused a certificate by SEBI or its certificate has not been
suspended or cancelled under the Regulations 30.

SEBI may require the applicant to furnish further information, if it considers necessary.

A venture capital fund can raise money from any investor whether Indian, foreign or non-
resident Indians by way of issue of units. No venture capital fund set up as a company or
any scheme of a venture capital fund or set up as a trust can accept any investment from
any investor which is less than five lakh rupees. However nothing applies to investors
who are the employees or the trustee company or trustees where the venture capital fund,
or directors of the trustee company or trustees where the venture capital fund has been
established as a trust; or the employees of the fund manager or asset management
company. Each scheme launched or fund set up by a venture capital fund should have
firm commitment from the investors for contribution of an amount of at least Rupees five
crores before the start of operations by the venture capital fund.

Venture capital fund is required to disclose the investment strategy at the time of
applicant for registration and should not invest more than 25% corpus of the fund in one
venture capital undertaking. It should also not invest in the associated companies and
make the investment in the venture capital undertaking as given below:

(i) at least 75% of the investible funds shall be invested in unlisted equity shares or equity
linked instruments.
(ii) not more than 25% of the investible funds can be invested by way of subscription to
initial public offer of a venture capital undertaking whose shares are proposed to be listed
subject to lock-in period of any one year and also through debt or debt instrument of a
venture capital undertaking in which the venture capital fund has already made an
investment by way of equity.

No venture capital fund is entitled to get its units listed on any recognized stock exchange
till the expiry of three years from the date of the issuance of units by the venture capital

All investments made or to be made by a venture capital fund are subject to the following
The venture capital fund should not invest in the equity shares of any company or
instruction providing financial services and at least 80% of funds raised by a venture
capital fund should be invested in:
(i) The equity shares or equity related securities issued by a company whose securities are
not listed on any recognized stock exchange. However, it has been provided that a
venture capital fund may invest in equity shares or equity related securities of a company
whose securities are to be listed or are listed where the venture capital fund has made
these investments through private placements prior to the listing of the securities.
(ii) The equity shares or equity related securities of a financially weak company or a risk
industrial company, whose securities may or may not be listed on any recognized stock-
‗Financially weak company‘ for the purpose means a company, which has at the end of
the previous financial year accumulated losses, which has resulted in erosion of more
than 50% but less than 100% of its net worth as at the beginning of the previous financial
(iii) Providing financial assistance in any other manner to companies in whose equity
shares the venture capital fund has invested under sub-clause (a) or sub-clause, (b) as the
case may be.
The expressions ‗funds raised‘ means the actual money raised from investors for
subscribing to the securities of the venture capital fund and includes money raised from
the author of the trust in case the venture capital fund has been established as a trust but
shall not include the paid up capital of the trustee company, if any.

It is the duty of every officer of the venture capital fund in respect of whom an inspection
or investigation has been ordered and any other associate person who is in possession of
relevant information pertaining to conduct and affairs of such venture capital fund
including fund manager or asset management company, if any, to produce to the

investing or inspecting officer such books, accounts and other documents in his custody
or control and furnish him with such statements and information as the said officer may
require for the purposes of the investigation or inspection. Every officer of the venture
capital fund and any other associate person who is in possession of relevant information
pertaining to conduct and affairs of the venture capital fund required to give to give to the
inspecting or investigating officer all such assistance and should extend all such co-
operation as required in connection with the inspection or investigations and should also
furnish such information sought by the inspecting or investigating officer in connection
with the inspection or investigation.

The investigating or inspecting officer for the purposes of inspection or investigation, has
the power to examine and record the statement of any employees, directors or person
responsible for or connected with the activities of venture capital fund or any other
associate person having relevant information pertaining to such venture capital fund. The
inspecting or investigating officer should for the purposes of inspection or investigation,
have power to obtain authenticated copies of documents, books, accounts of venture
capital fund, from any person having control or custody of such documents, books or

Foreign venture capital investor means an investor incorporated and established outside
India, which proposes to make investment in venture capital fund or venture capital
undertakings in India and is registered under the Regulations.

As started earlier, venture capital fund means a fund established in the form of a trust, a
company including a body corporate and registered under Securities and Exchange Board
of India (venture capital fund) Regulations, 1996, which has a dedicated pool of capital:
raised in the manner specified under the Regulations and invests in venture capital
undertaking in accordance with the regulations.

Venture capital undertaking means a domestic company whose shares are not listed in a
recognized stock exchange in India: which is engaged in the business of providing
services, production or manufacture or articles or things, but does not include such
activities or sectors which are specified in the negative list by SEBI, with approval of
Central Government, by notification in the Official Gazette in this behalf.

1.Nature: Venture Capital is a long term investment. Since the project is risky, it may
take time to earn profits. Therefore, it takes time to get the refund of capital as well as
return on it. The investors can exist on success of the project by off-loading their
investment. But it takes long time to get the success.

2.Form: Venture Capital is mainly in the form of equity capital. Investors can subscribe
the equity capital and provide the necessary funds to complete the project. The amount of
equity invested by the venture capitalist is normally up to 49%of the total equity capital
required for the project.

3.Borrowers: The borrowers are the new entrepreneurs who raise venture capital because
they cannot get such an amount from the general investors.

4.Type of project: Venture Capital projects are high risk, high technology and long term

5.Managenment: Venture Capital projects are managed jointly by the entrepreneurs and
venture capitalists. However, venture capitalist should not interfere in day to day
activities of the management. The venture capitalist can take active part in the
management and decision-making.

6.New venture: Venture capital investment is generally made in new enterprises that use
new technology to produce new products, in expectations of high gains or sometimes,
spectacular returns.

7.Continuous involvement: Venture capitalists continuously involve themselves with
the client‘s investments, either by providing loans or managerial skills or any other

8.Mode of investment: Venture capital is basically an equity financing method, the
investment being in relatively new companies when it is too early to go to the capital
market to raise funds. In addition, financing also takes the form of loan
finance/convertible debt to ensure a running yield on the portfolio of the venture

9.Objective: The basic objective of a venture capitalist is to make a capital gain in equity
investment at the time of exit, and regular on debt financing. It is a long-term investment
in growth-oriented small/medium firms. It is a long-term capital that is injected to enable
the business to grow at a rapid pace, mostly from the start-up stage.

10.Hands-on approach: Venture capital institutions take active part in providing value-
added services such as providing business skills, etc to investee firms. They do not
interfere in management of the firms nor do they acquire a majority/controlling interest in
the investee firms. The rationale for the extension of hands-on management is that
venture capital investments tend to be highly non-liquid.

11.High risk-return ventures: Venture capitalists finance high risk-return ventures.
Some of the ventures yield very hi8gh return in order to compensate for the heavy risks
related to the ventures. Venture capitalists usually make huge capital gains at the time of

12.Nature of firms: Venture capitalists usually finance small and medium-sized firms
during the early stages of their development, until they are established and are able to
raise finance from the conventional industrial finance market. Many of these firms are
new, high technology-oriented companies.

13.Liquidity: Liquidity of venture capital investment depends on the success or
otherwise of the new venture or product. Accordingly, there will be higher liquidity
where the new ventures are highly successful.

The guidelines/registrations are embodied in a Consultative Paper (XI) dated 13.2.1996
which have been approved by SEBI Board in principle as reported in Press on 3.7.1996.
According to the Consultative Paper, Venture Capital investments are essentially equity
investments in companies that are not sufficiently mature to access the general public
through stock markets, but have sufficiently high growth prospects to compensate for the
incremental risk, and where the venture capital investor expects to take an active role.
Venture capital investment is defined as a vehicle for enabling pooled investment by a
number of investors in equity and equity related securities of companies which will
generally be private companies, and whose shares are not quoted on any stock exchange.

An entity sponsoring a venture capital fund or the fund itself has to apply to SEBI and
registration is granted subject to either a trust being formed and a trustee company
incorporated or the venture capital company being incorporated. In case of a VCFs asset
management company, there are no stipulations regarding minimum net worth. They
have to however submit half-yearly results. To avail of tax benefits, the VCF is required
to follow CBDT guidelines (July 1995).

Further it was specified that existing VCFs register with SEBI within three months of
notification (February 1996). SEBI would have powers for inspection and inquiry into
their operations.

Pricing of the shares at the time of disinvestment by public issue or general offer of sale
by VCF/VCC may be done on the basis of objective criteria like book value, profit
earning capacity. The basis of pricing should be disclosed to public. However, venture
capital companies as promoters have to meet the lock-in period of three years for unlisted
shares. This provision prevents rollover of funds and disinvesting investment after the
company has established itself.

Following are the critical factors required for the success of the VC industry in India:
1. Framework: The venture capital should be so designed that they are flexible to meet
the needs of industry and they should be properly regulated without too much or too little

2. Institutional: Venture Capital should become an institution i.e. a separate aspect so
that investors and all connected in industries can avail of this facility.

3.Global exposure: Venture capitalist must have flexibility to invest internationally i.e.
from one country to another.

4.Infrastructure: Venture capital should be supported by proper infrastructure so that R
& D is quickly converted into successful projects.

Although many other similar investment mechanisms have existed in the past, General
Georges Doriot is considered to be the father of the modern venture capital industry.
In 1946, Doriot co-founded American Research and Development Corporation (AR&DC)
with Ralph Flanders, Karl Compton and others, the biggest success of which was Digital
Equipment Corporation. When Digital Equipment went public in 1968 it provided
AR&DC with 101% annualized Return on Investment (ROI). AR&DC's $70,000 USD
investment in Digital Corporation in 1957 grew in value to $355 million USD. It is
commonly accepted that the first venture-backed startup is Fairchild Semiconductor,
funded in 1959 by Venrock Associates.

Venture capital investments, before World War II, were primarily the sphere of influence
of wealthy individuals and families. One of the first steps toward a professionally-
managed venture capital industry was the passage of the Small Business Investment Act
of 1958. The 1958 Act officially allowed the U.S. Small Business Administration (SBA)
to license private "Small Business Investment Companies" (SBICs) to help the financing
and management of the small entrepreneurial businesses in the United States. Passage of
the Act addressed concerns raised in a Federal Reserve Board report to Congress that
concluded that a major gap existed in the capital markets for long-term funding for
growth-oriented small businesses. Facilitating the flow of capital through the economy up
to the pioneering small concerns in order to stimulate the U.S. economy was and still is
the main goal of the SBIC program today.

Generally, venture capital is closely associated with technologically innovative ventures
and mostly in the United States. Due to structural restrictions imposed on American
banks in the 1930s there was no private merchant banking industry in the United States, a
situation that was quite exceptional in developed nations. As late as the 1980s Lester
Thurow, a noted economist, decried the inability of the USA's financial regulation
framework to support any merchant bank other than one that is run by the United States
Congress in the form of federally funded projects. These, he argued, were massive in
scale, but also politically motivated, too focused on defense, housing and such
specialized technologies as space exploration, agriculture, and aerospace.
US investment banks were confined to handling large M&A transactions, the issue of
equity and debt securities, and, often, the breakup of industrial concerns to access their
pension fund surplus or sell off infrastructural capital for big gains.

Not only was the lax regulation of this situation very heavily criticized at the time, this
industrial policy differed from that of other industrialized rivals—notably Germany and
Japan—which at that time were gaining ground in automotive and consumer electronics
markets globally. However, those nations were also becoming somewhat more dependent
on central bank and elite academic judgment, rather than the more diffuse way that
priorities were set by government and private investors in the United States.

During the 1960s and 1970s, venture capital firms focused their investment activity
primarily on starting and expanding companies. More often than not, these companies
were exploiting breakthroughs in electronic, medical or data-processing technology. As a
result, venture capital came to be almost synonymous with technology finance. Venture
capital firms suffered a temporary downturn in 1974, when the stock market crashed and
investors were naturally wary of this new kind of investment fund. 1978 was the first big
year for venture capital.

The venture capital industry in India is still in an embryonic stage. With a view to
promote innovation, enterprise and conversion of scientific technology, and knowledge-
based ideas into commercial production, it is very important to promote venture capital
activity in India. Going by the recent success story in the area of information technology,
India has a tremendous potential for growth of knowledge-based industries. This potential
is not technology, India has to tremendous potential for growth of knowledge-based
industries. This potential is not confirmed only to information technology, but is equally
relevant in several other areas such as biotechnology, pharmaceuticals and drugs,
agriculture, food processing, telecommunications, services, etc.

Given the inherent strength of its skilled and cost competitive manpower, technology,
research and entrepreneurship, and with the proper environment and policy support, India
can achieve rapid and sustainable economic growth and competitive strength.

A flourishing venture capital industry in India will fill the gap between the capital
requirements of technological knowledge-based startup enterprises and the funding
available from traditional institutional lenders such as banks, etc. the gap exists because
such startup are necessarily based on intangible assets such as human capital and
technology-enabled mission.

Very often, they use technology development in university and government research
laboratories that would otherwise not be converted to commercial use. However, from the
viewpoint of a traditional banker, they have neither physical assets nor a low-risk
business plan. Not surprisingly, companies such as Apple, Exodus, Hotmail and Yahoo,
to maintain a few of the many successful multinational venture capital funded companies,
initially failed to get startup capital when they approached traditional lenders. However,
they were able to obtain finance from independently managed venture capital funds that
focus on equity or equity-linked investments in privately held, high- growth companies.
In addition to finance, other services such as smart advice, hands-on management support
and other skills that help the entrepreneurial vision to be converted to marketable
products are also offered.

The venture capital industry in India is of relatively recent origin. Before its emergence
the development finance institutions had been partially playing the role of venture
capitalists by providing assistance for direct equity participation. The need for venture
capital was found in around in 1985 when a lot of investors burnt their fingers by
investing in fledging enterprises with unproven projects which were not yet

commercialized. The concept was operationalised only in the fiscal budget for 1987-88
when a cess upto 5%was introduced on all technology import payments to create a pool
of funds. Recognizing the acute need for higher investment in venture capital activities,
SEBI appointed the Chandrashekhar Committee to identify the impediments in the
growth of venture capital industry in the country and suggest suitable measures for its
growth. The recommendations of the panel have been accepted in principle and those
concerning SEBI have been implemented.

The growth of venture capital in India was simulated in the late 1980s with a series of
measures to establish government sponsored risk capital corporations and capital gains
tax concessions for venture capital investments (Verma, 1997). The venture capital
industry in India has subsequently witnessed increased activity with a rise in the number
as well as the pool of funds for investment (IVCA Venture Activity, 1997). By 1998 total
investment funds under management amounted to approximately $1.1 billions (AVCJ,
1999). In 1998, foreign institutional investors contributed 51$ of the total pool of funds as
compared to 26% contributed by the all India financial institutions. The balance of funds
is provided by a mixture of multinational agencies, commercial banks (nationalized and
others), insurance companies, corporate sector mutual funds, non-resident Indians, other
public sector providers, etc. the venture capital industry is dominated by early stage
investments (59.2% of value and 66.2% of number of investments, IVCA, 1999) while
the largest industrial sector in the Indian market is industrial products (23.5% of
investment value). Computer software is second largest, followed by computer hardware
accounting for a further 5.9% and biotechnology and tele and data communications 5.4%
of the value of investments in 1998.

The first origin of modern day Venture Capital in India can be traced to the setting up of
a Technology Development Fund (TDF) in the year 1987-88, through the levy of a cess
on all technology import payments.

In 1996, SEBI came out with guidelines for venture capital funds, which paved the way
for entry of foreign venture finds into India. Today, the total pool of Indian Venture
Capital today, stands over Rs.50 bn.

      Capital is pouring into private equity funds.
      Average ticket size of VC investment is increasing
      First generation entrepreneurs are finding easier to raise funds.
      Investors are demanding non financial value additions
      Most states are setting regional VC funds
      VC firms are getting professionalised
      Incubators and serial entrepreneur are germinating
      VC firms are getting specific industry focused
      Competition is stretching valuation

How many firms are listed in the 2008 Venture Capital Directory?
There are approximately 1830 firms listed in the Venture Capital Directory. This
represents virtually all firms that actively invest in the United States.

How many individual investment professionals are listed in the Venture Capital
Many thousands. The directory currently has direct contact information (i.e. personal e-
mail address and / or telephone number) for well over 7000 investment professionals.

What industries are covered by the Venture Capital Directory?
Capital Vector covers investment activity across nearly 100 different industries and
sectors in the Venture Capital Directory.

What investment stages are covered by the Venture Capital Directory?
Virtually all private investment stages are covered by the Venture Capital Directory.
Included stages span Seed through Mezzanine.

What information does the Venture Capital Directory provide for a typical firm?
The Venture Capital Directory provides highly comprehensive information for each firm.
A typical listing includes firm location(s), management team (with direct contact
information), firm history, investment preference (stage, sector, geography, etc.), fund
size, portfolio companies, and more.

How timely is the information contained in the Venture Capital Directory?
Unlike most other directory products, the information contained in the Venture Capital
Directory is updated on a daily basis, and new versions are published monthly. Thus,
when you purchase and download your directory, you are certain to have the most timely
information available.

How easy is the Venture Capital Directory to use?
The Venture Capital Directory was designed to be extremely intuitive to use. Firms can
be browsed with several simple macro finding aids. In addition, firms, investment
professionals, and portfolio companies can be easily found using the intelligent built-in
search utility.

I need immediate access. Is the Venture Capital Directory downloadable?
Yes. The Venture Capital Directory comes in a downloadable format that can be accessed
immediately after purchase.

Can the Venture Capital Directory be used to produce direct mail campaigns?
Yes. In addition to the advanced searchable directory application. The Venture Capital
Directory comes with two Excel mail merge spreadsheets containing thousands of
updated and confirmed e-mail and postal addresses. Service providers and industry
organizations rely on the Venture Capital Directory to efficiently communicate with key
members of the Venture Capital industry.

As a Capital Vector client, how do I purchase updated versions of the directory?
A large portion of our clients purchase updated directories on a regular basis. As a client,
you will receive a special discount link where updated versions of the Venture Capital
Directory can be purchased for a significantly discounted fee.

Who uses Capital Vector's Venture Capital Directory?
Capital Vector has a broad domestic and international client base. Typical users include:
companies seeking financing, investors seeking syndication partners, firms that service
the Venture Capital industry (i.e. executive recruiters and investment banks), and
academics conducting research.

IDBI‘s scheme envisages assistance to all industrial units, existing as well as new units.
The assistance is generally granted as loan for a minimum amount of Rs 5 lakhs at
interest raging from 6 to 17% p.a., depending on the size of the project. Capital as well as
operating expenditure can be funded from the loan. The recovery may be through – profit
sharing / royalty. IDBI may also subscribe to the share capital of the borrowing concern
with buy back arrangement with promoters.

Small Industries Development Bank of India has to set up (July 1993) a venture capital
fund, exclusive for support to entrepreneurs in the small scale sector. Initially, a corpus
has been created by setting apart Rs 10 cores. The fund would be augmented in future ,
depending upon the requirements.


MONA GOSALIA              313

FORAM GADIALI             330

SHIVANGI SEHGAL           332

DARSHITA SHAH             333

DHARA SHAH                334

HEPAL SHAH                336

         PRESENTED TO:-
         D‘SOUZA SIR


                        – (CS)

                        – DR. GURUSAMY

                        - DR. GURUSAMY