2) Explain the concept of venture capital and give the brief note on venture capital in india

Venture capital (VC)

It is financial capital provided to early-stage, high-potential, growth startup companies. The venture
capital fund earns money by owning equity in the companies it invests in, which usually have a novel
technology orbusiness model in high technology industries, such as biotechnology and IT. The
typical venture capital investment occurs after the seed funding round as the first round of
institutional capital to fund growth in the interest of generating a return through an eventual
realization event, such as an IPO or trade sale of the company. Venture capital is a type of private
equity

VENTURE CAPITAL IN INDIA

India is flushed with investment commitments from the giants of technology. Microsoft, Cisco,
IBM, SAP, Intel, and AMD have each committed over a billion to further develop their India
presence.
So have many of the leading venture capital firms from Silicon Valley. For the longest time,
Valley VCs would only invest in their backyard. No more. India, China, Israel are fair game
today. This month, Matrix Partners has announced a $150 Million India fund. Sequoia has
acquired Westbridge Capital, an India focused fund that has been around for five years. Several
other major VCs are playing the space Kleiner Perkins, NEA, Norwest, Battery, Sierra,
Canaan Partners.
Historically, India has been the worlds back-office. Consequently, the skill-set that has
developed in India is that of engineering management and coding. The specifications are
provided by teams elsewhere. Elsewhere, the market studies get done. Indian managers do not
understand global technology markets. They have hardly had opportunity to learn this aspect of
business. Entrepreneurs try to position products without knowledge of the product marketing
discipline.
The natural instinct for Indian entrepreneurs is to build outsourcing services companies. BPO.
Software Development. Chip Design. Those ventures take less capital, and become revenue
generating fast. None of the Operating Loss period of a pure play product company is
necessary, and hence, venture capital is also unnecessary.
VCs typically do not like this business model. It has low entry barrier. But those who have
invested in India in the last five years have also invested in this model and made money off it. It
was the only thing that was available. It is, however, becoming less appealing, since those
markets are also maturing, and behemoths start to rule.
The next stop for VCs, the most recent wave, has been Consumer Internet and Mobile offerings.
Indias growing mass of connected consumer population is the target wallet. Travel,
Matrimonials, Jobs, Games, Mobile Payments are all segments getting substantial capital
infusion. This trend is likely to continue for the next 18 months. The engineering required in
building these sites is marginal, marketing being the big differentiator.

3) Distingwish between traditional and E-banking

Traditional Banking
In traditional banking system, a customer can open any bank account in banks,
take the facility of saving his money by depositing money in local bank. He can
withdraw his money through check, counter payment and through bank draft. He
can meet the bank manager and ask his problem. He can take the physical help for
getting loan from bank.

E-banking
E-banking means Internet banking or modern banking or online bill. In this method,
customer gets his bank account ID and password and he can check his account, pay
his bill and print his receipt through his home personal computer which is
connected with Internet. E-banking is development of today banking system. In
other words, e-banking is electronic banking whose facility, you can take through
your regular broadband Internet connect.

Benefits
Traditional Banking
Traditional banking has totally improved from previous face. Few days ago, I went
to State bank of India for withdrawing my money where I saw many monitoring
cameras. My one friend is also doing duty in that bank. I asked question from my
friend why have these cameras been attached here? Are these on? My friend
explained me that it is more than Rs. 500,000 cost project per branch of SBI. We
do not want to take risk of customer's money. Customer's loss is our loss. We
deduct fraud case by monitoring the activities through this surveillance cameras. I
feel happy because now traditional banking has improved and there is minimum
change of fraud.

E-banking
(i) Convenient
I think e-banking is convenient because we can use e-banking for tracking my
money in bank without going to bank. I am already changing everything from

traditional to online. I am tracking my courier letter by opening the site of courier

and writing the track no. after this I can easily know when my letter will come from
foreign country.

(ii) Protection of Environment

If we all start to use e-banking, we can also protect our environment. Suppose, you
have to withdraw Rs. 500,000 from HDFC bank and deposit it to SBI. What will you
do? You will start your vehicle and go to HDFC bank and withdraw the money and
then go to SBI for depositing this money. By using vehicle, you are increasing the
pollution in the environment. Today is 5th June 2010, the day of world
environment. We can protect our environment by using e-banking. Just within 5
minute, we can transfer our money from HDFC bank to SBI bank through home ebanking facility. You can also use e-bill facility of your Internet bill.

Disadvantages
(a) Traditional Banking
(i) Robbery
Open any day newspaper, you will see the new bank robbery case. This is the
disadvantages. Two and more thieves came and taken bank's money is general
news. No one can do same thing in e-banking.

(ii) Time limitation

Banks are opened from 9: 00 to 5:00 p.m. But, it may possible that we have to pay
at 11:00 p.m. which can be done through e-banking not traditional banking.

(b) E-banking
Hacking, spyware program, computer virus and breaking online password are the
weakness of e-banking or online banking. Online big hackers are using computer
virus and after spreading it, they compromise your computer. After this, they know
all detail of your computer and banking password and illegally transfer all your
money. Next day, your bank account may be zero. Even you can stop this crime by
writing strong password but you can not remove it totally.