STUDY ON VENTURE CAPITAL &PRIVATE EQUITY FUND

VENTURE CAPITAL?
• Venture Capital is money invested in businesses that are small; or exist
only as an initiative, but have huge potential to grow. The people who
invest this money are called venture capitalists (VCs). The venture capital
investment is made when a venture capitalist buys shares of such a
company and becomes a financial partner in the business.
• Venture Capital investment is also referred to risk capital or patient risk
capital, as it includes the risk of losing the money if the venture doesn’t
succeed and takes medium to long term period for the investments to
fructify.

• FEATURES:
 VENTURE CAPITAL
ADVANTAGES DISADVANTAGES
• Large amounts of capital can be raised. • Founder ownership is reduced.

• Help managing risk is provided. • Finding investors can be distracting for founders.

• Personal assets don’t need to be pledged. • Funding is relatively scarce & difficult to obtain.

• Experienced leadership & advice are available. • Extensive due diligence is required.

• Assistance with hiring & building a team is • Business is expected to scale & grow rapidly.
available.

Venture capital process:

I. Deal Origination
II. Screening
III. Evaluation
IV. Deal Negotiation
V. Post Investment Activity
VI. Exit Plan
 PROBLEMS FACED AND REMEDIES TAKEN
PROBLEMS REMEDIES

 Requirement of an experienced management  Reduce the rule and regulation of SEBI.

team.
 Investment made on development of
 Requirement of an above average rate of return management and employees through training,
on investment. improving skills.

 Longer payback period.  Avoid venture capitalist interference in business

activity.
 Uncertainty regarding the success of the
product in the market.  Increasing market facilities.

 Questions regarding the infrastructure details of  Provide more infrastructure facilities

production.

 Skill and training required.

 Time period.

 Interference in business .
 WHAT DO VENTURE CAPITAL LOOK FOR
 LEADERSHIP ABILITY

 A STRONG TEAM

 GROWTH MARKET

 A CLEAN CAP TABLE

 INNOVATIVE PRODUCT

 BROAD SOM (SERVICE OBTAINABLE MARKET)

 REASONABLE CASH BURN RATE

 INVESTMENT THESIS FIT

 A DETAILED PLAN FOR HOW THE CAPITAL WILL BE PUT TO WORK

 10X POTENTIAL
EXITS

 AN IMPORTANT ASPECT OF VENTURE CAPITAL INVESTING IS THE EXIT STRATEGIES.

 VENTURE CAPITAL FUNDS PRIMARILY INVEST WITH AN EXIT IN MIND AFTER A FEW
YEARS.
 AFTER SUCCESSFULLY FUNDING AT SEED, PRE-PRODUCTION, PRODUCTION AND
EXPANSION STAGES, A VENTURE CAPITALIST WILL START ASSESSING EXIT STRATEGIES.
THE SIX MAIN EXIT OPTIONS ARE:
1. TRADE SALES
2. IPO
3. BUY BACK
4. WRITE-OFFS
5. BANKRUPTCY: THE COMPANY MAY JUST GO BANKRUPT.
6. MERGER AND ACQUISITIONS
 SAIF PARTNERS
SAIF Partners is a stage and sector agnostic private equity firm in Asia. SAIF Partners currently manages over $4 billion in
capital. The firm has offices in Hong Kong, China, and India. SAIF Partners was started as a Softbank Asia Infrastructure Fund
in 2001, with a $ 400 million fund where cisco systems and Softbank group were the sole limited partners. In India SAIF
Partners has its offices in Gurugram and Bengaluru.
Industry- Venture Capital
CEO- Mr.Vaibhav Goel
Headquarter- China and India
Founded- 2001
VAIBHAV GOEL
PORTFOLIO INVESTMENTS
 Makemytrip
 Bookmyshow
 Ixigo
 Swiggy
 Meesho
 IL&FS Investsmart
 Paytm
 Bobble
 Sharechat
 Rivigo

EXITS
SAIF Partners has 32 exits so far.
 Its most noticeable exits are Makemytrip and Indiamart.
 Out of 32 exits SAIF Partners has 13 by IPOs and 10 by acquisitions
so far.
 In Inke and PPTV, SAIF Partners exit by IPO and in Ctrip and
Supersonic they exit by acquisitions.
HELION VENTURE PARTNERS
HISTORY
 HELION WAS FOUNDED IN 2006.
 HELION WAS FOUNDED BY RAHUL CHANDRA, ASHISH GUPTA, KANWALJEET
SINGH AND SANJEEV AGARWAL.
 THE MAIN FOCUS OF FIRM IS IN THE TECHNOLOGY STARTUPS.
 HELION WAS INDIA’S “LARGEST DOMESTIC VENTURE CAPITAL FIRM” IN 2012.

The company has created four funds:

 A $140 million fund in 2006, a $210 million fund in 2008, a $255 million
fund in 2012, and a $300 million fund in 2015.
 Although Helion is focused primarily on technology companies, it has
also funded companies in the environmental technology, education,
financial services, and health care sectors
INVESTMENTS

 Exits
Helion has 24 number of exits.
In 2010 Helion exited from Make My Trip by an Initial Public offering.
In 2012 Letsbuy and Exclusively.in were acquired by Flipkart.
In 2013 Naspers bought Redbus.in and in the same year Moody’s
Investor Services bought Amba Research.
In 2016 Equitas listed in Bombay Stock Exchange.
In 2016 only Zettata was acquired by Target Corporation and
Pipemonk was acquired by Fresh works.
 PRIVATE EQUITY FUND
• A private equity fund is a collective investment scheme used for making
investments in various equity securities according to one of the
investment strategies associated with private equity.

• Private equity funds are typically limited partnerships with a fixed term
of 10 years

FEATURES:
• 1.Help companies to raise funds.
• 2.Brings growth capital to your firm.
• 3.High investment
• 4.Low risk involved as compared to venture capital
• 5. They are maintained by experienced and capable investment
professionals
• 6.Focuses on profit share
 • ADVANTAGES • DISADVANTAGES
• Loss of ownership stake • Cash infusion

• Restricted access • Expertise

• Lockup time • Huge amount of funding

• High cost • Add value to the firm

EXIT STRATEGIES:
• Initial Public Offering(IPO)

• Strategic Acquisition

• Secondary sale

• Repurchase by the promoters

• Liquidation
ICICI VENTURE

Since 2019, ICICI Venture delivered exits worth $2.09 billion

ICICI Venture sold its 30% stake in KIMS to General Atlantic
All exits are done by 4 verticles
Believes in horses-for-courses strategy
ICICI VENTURE to raise $500 million
$25-50 million in Indian companies
PORTFOLIO

Associated Cement Companies brought in 2005

Infomedia18 brought in 2003
ING Vysya Bank brought in 2011
 BAIN & COMPANY
BAIN & COMPANY IS A GLOBAL MANAGEMENT CONSULTANCY HEADQUARTERED IN BOSTON, MASSACHUSETTS. ONE OF
THE "BIG THREE" MANAGEMENT CONSULTANCIES, IT IS SEEN AS ONE OF THE MOST PRESTIGIOUS EMPLOYERS IN THE
INDUSTRY. THE FIRM PROVIDES ADVICE TO PUBLIC, PRIVATE, AND NON-PROFIT ORGANIZATIONS.

CEO : MANNY MACEDA( 1 MARCH 2018)

HEADQUARTERS : BOSTON, MASSACHUSETTS, UNITED STATES

NUMBER OF EMPLOYEES: 8000(2018)

FOUNDED : 1973

MANNY MACEDA
CURRENT AND FORMER PORTFOLIO COMPANIES MANAGED BY
BAIN CAPITAL PRIVATE EQUITY
 BURGER KING
 BURLINGTON INDUSTRIES
 BURLINGTON STORES
 CALUMET COACH
 CAMBRIDGE INDUSTRIES
 CAMERA WORLD
 CAMP AUSTRALIA
 CANADA GOOSE
 CARDINAL HEALTH (MEDIQUAL SYSTEMS)
 CARVER KOREA
 CERVED
 CHINA FIRE AND SECURITY GROUP
 CHINA PNR
 CLARICOM HOLDINGS (EXECUTONE)
 CLOSINGS, LTD.
 AND MANY MORE ( APPROXIMATELY 750+)
 STRATEGIES AND APPROACH
 Bain Capital Private Equity’s primary objective is to be the partner of choice for great companies
as they grow. Bain and company team works with companies to achieve their full potential, and
track record has included many successful start-ups, turnarounds and carve-outs from larger
corporate partners.
 It help companies improve their competitive position by expanding into new products and
markets, growing productivity and strengthening their operations. Ultimately, their growth-
oriented model results in stronger companies that employ the best people that are socially
responsible, and deliver strong returns over the long-term.
 Bain Capital Private Equity utilizes a strategic, fact-based and diligence-driven investment approach
that by definition includes a multitude of environmental, social and governance (ESG)
considerations. ESG practices lead to better investment outcomes while considering the firm’s
broader impacts on the environment and society.