TODAYS TOPIC

WHAT IS VENTURE CAPITAL? WHO ARE VENTURE CAPITALIST? WHY VENTURE CAPITAL? 6 BIGGEST MISTAKES IN RAISING START UP CAPITAL? HOW CAN U QUALIFY FOR V.C. HOW TO APPROACH FOR VCFs VENTURE CAPITAL IN INDIAN CONTEXT ISSUES AND CHALLENGES FUTURE OF V.C IN INDIA. CONCLUSION QUICK RECAP

 WHAT IS VENTURE CAPITAL? Venture capital is also called as RISK CAPITAL. It is provided as seed funding to early stage, High Potential Companies.

WHO ARE VENTURE CAPITALIST

Venture capital comes from Institutional investor and High net worth individuals or families and is pooled by dedicated firms
A venture capitalist is a person or institutional firm that makes venture investment and these venture capitalist are expected to bring managerial and technical expertise as well as capital to their investment

Who can avail venture Capital?

Generally Venture capitalist firm invest in high technology industries such as biotechnology and IT (Information Technology).

QUALIFICATIONS: Should be a Technology Company. Can you be a market leader. Will it be cheap to make this company. Clear distribution channel. Can the company go public or Acquired.

WHY VENTURE CAPITAL?

Firms opt for venture capital even though the cost of acquiring is higher because it will be difficult for new and budding firms to acquire loans from banks or raise capital from public

How to Approach vcfs

Business Cycle: Do they invest in budding or established businesses? Industry: What is their industry focus? Investment: Is their typical investment sufficient for your needs? Location: Are they regional, national or international? Return: What is their expected return on investment? Involvement: What is their involvement level?

6 biggest mistakes in raising start up Capital?

1.Half-baked business plans. 2. Focusing too much on the idea and too little on the management
3. Not asking for enough money

4. Having too many lenders or investors

5. Failing to get the proper legal agreements

6. Poor cash flow management

VENTURE CAPITAL IN INDIA

With the advent of liberalization, India has been showing remarkable growth in the economy in the past 10 - 12 years. The venture capital industry in India has grown dramatically in the last few years, even boasting its own Silicon Valley' in the form of Bangalore.

REASONS FOR GROWTH OF VENTURE CAPITAL INVESTMENT IN INDIA

(i) Existence of a globally competitive high technology.

(ii) Globally competitive human resource capital.

(iii) Second Largest English speaking, scientific & technical manpower in the world.

(iv) Vast pool of existing and ongoing scientific and technical research carried by large number of research laboratories.
(v) Initiatives taken by the Government in formulating policies to encourage investors and entrepreneurs. (vi) Initiatives of the SEBI to develop a strong and vibrant capital market giving the adequate liquidity and flexibility for investors for entry and exit.

Where are VCs Investing In India?

IT and IT-enabled services Software Products (Mainly Enterprise-focused) Wireless/Telecom/Semiconductor Banking PSU Disinvestments Media/Entertainment Bio Technology/Bio Informatics Pharmaceuticals Electronic Manufacturing Retail

Conclusion
The world is becoming increasingly competitive Companies are required to be super efficient with respect to cost, productivity, labor efficiency, technical back up, flexibility to consumer demand, adaptability and foresightedness. There is an impending demand for highly cost effective, quality products

Conclusion
There are large sectors of the economy that are ripe for VC investors ,like,. I.T., Pharmacy, Manufacturing. Telecom, Retail franchises, food processing and many more. inspite of the existing shortcomings in the Indian infrastructure.

Looking ahead for a bright future for India Inc.

Quick recap
WHAT IS VENTURE CAPITAL? WHO ARE VENTURE CAPITALIST? WHY VENTURE CAPITAL? 6 BIGGEST MISTAKES IN RAISING START UP CAPITAL? HOW CAN U QUALIFY FOR V.C. HOW TO APPROACH FOR VCFs VENTURE CAPITAL IN INDIAN CONTEXT ISSUES AND CHALLENGES FUTURE OF V.C IN INDIA. CONCLUSION FLASH BACK