WELCOME TO

VENTURE CAPITAL
PRESENTATION
By,
Fariha Tabassum
Mastan

WHAT IS VENTURE CAPITAL?

Venture capital is money provided by
investor to start up firms and small
businesses with perceived long term growth
potential .This is a very important source for
funding for startups that do not have access
to capital markets. It typically entails high
risk for investors .But it has a potential for
above-average returns.

FEATURES OF VENTURE CAPITAL

High risk
Lack of liquidity
Long term horizon
Equity participation and capital gains
Venture capital investors are made in
innovative projects
Suppliers of venture capital participate in
the management of the company

STEPS IN VENTURE CAPITAL

Step:1
Idea generation and submission of business
plan.
Step:2
Introductory meeting.
Step:3
Due diligence.
Step:4
Term sheets and funding.

VENTURE CAPITAL FUND IN

INDIA
VCFs in India can be catagorised into five
groups.
1) Those promoted by central government
controlled development finance institutions.
For example:
ICICI venture funds ltd.
IFCI venture capital fund ltd.
SIDBI venture capital ltd.

2) Those promoted by state government controlled

development finance institution.
Punjab infotech venture fund
Gujarat venture financing Ltd
Kerala venture capital fund Pvt Ltd.
3) Those promoted by public banks.
For example:
Canbank venture capital fund
SBI Capital Market Ltd.

4) Those promoted by private sector companies.

For example:
IL&FS Trust Company Ltd
Infinity Venture India Fund
5)Those established as an overseas venture
capital fund.
For example:
Walden International Investment Group
HSBC Private Equity

ADVANTAGES OF VENTURE
CAPITAL

They can provide large sum of equity finance

Able to bring wealth and expertise to your
company
Easier to secure future funding from other
sources
The business is not obligated to repay the
money.

DISADVANTAGES OF VENTURE
CAPITAL

Lengthy and complex process(need detailed

business plan, financial projections and etc.
In the deal negotiation stages, you will have
to pay for legal and accounting fees.
Investors become part owners of your
businesses-founder loss of autonomy are
control.

THANK YOU