What is Venture Capital?

Venture capital (VC) is financial capital provided to early-stage, high-potential, high risk, growth start-up companies. The venture capital fund makes money by owning equity in the companies it invests in, which and usually have a novel technology or business model in high technology industries, such as biotechnology, IT, software, etc. The typical venture capital investment occurs after the seed funding round as growth funding round (also referred to as Series) 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 subset of private equity. Therefore, all venture capital is private equity, but not all private equity is venture capital. In addition to angel investing and other seed funding options, venture capital is attractive for new companies with limited operating history that are too small to raise capital in the public markets and have not reached the point where they are able to secure a bank loan or complete a debt offering. In exchange for the high risk that venture capitalists assume by investing in smaller and less mature companies, venture capitalists usually get significant control over company decisions, in addition to a significant portion of the company's ownership (and consequently value). Venture capital is also associated with job creation (accounting for 2% of US GDP), the knowledge economy, and used as a proxy measure of innovation within an economic sector or geography. Every year, there are nearly 2 million businesses created in the USA, and only 600 800 get venture capital funding. According to the National Venture Capital Association, 11% of private sector jobs come from venture backed companies and venture backed revenue accounts for 21% of US GDP. It is also a way in which public and private actors can construct an institution that systematically creates networks for the new firms and industries, so that they can progress. This institution helps in identifying and combining pieces of companies, like finance, technical expertise, know-how s of marketing and business models. Once integrated, these enterprises succeed by becoming nodes in the search networks for designing and building products in their domain.

Venture Capital in India

                  

Accel Partners India Artheon Ventures Artiman Ventures August Capital Partners BlueRun Ventures DFJ India Epiphany Ventures Helion Venture Partners IFCI Venture Capital Funds India Innovation Investors Inventus (India) Advisory Company JAFCO Asia Netz Capital Nexus India Capital Ojas Venture Partners Reliance Venture SAIF Partners Trident Capital VentureEast

IFCI VENTURE CAPITAL FUNDS LTD.

IFCI Venture Capital Funds Ltd was set up by IFCI Ltd in 1975 as Risk Capital Foundation with a view to widen the entrepreneurial base by providing start up capital for setting up Green Field projects. Since its inception IFCI Venture has provided the start-up capital and venture funding to over 400 entrepreneurs.

Background
IFCI Venture Capital Funds Ltd. (IFCI Venture) was promoted as a Risk Capital Foundation (RCF) in 1975 by the IFCI Ltd., a society to provide financial assistance to first generation professionals and technocrat entrepreneurs for setting up own ventures through soft loans, under the Risk Capital Scheme. In 1988, RCF was converted into a company, Risk Capital and Technology Finance Corporation Ltd. (RCTC), when it also introduced the Technology Finance and Development Scheme for financing development and commercialisation of indigenous technology. Besides, under Risk Capital Scheme, RCTC started providing financial assistance to entrepreneurs by way of direct equity participation. Based on IFCI Venture's credentials and strengths, Unit Trust of India (UTI), entrusted RCTC with the management of a new venture capital fund named Venture Capital Unit Scheme (VECAUS-III) in 1991. The size of VECAUSIII was Rs.80 Crores, contributed by UTI and IFCI. To reflect the shift in the company's activities, the name of RCTC was changed to IFCI Venture Capital Funds Ltd. (IFCI Venture) in February 2000. In order to focus on Asset Management Activities, IFCI Venture discontinued Risk Capital and Technology Finance Scheme(s) in 2000-01 and continued managing VECAUS-III. In 2007, as UTI had ceased to carry out its activities and its assets vested with Specified Undertaking of the Unit Trust of India (SUUTI), the portfolio of VECAUS-III under management of IFCI Venture was transferred to SUUTI.

Mission
To become the leading institutional player in VC industry of the country."

Board of Directors Name of Director Shri Atul Kumar Rai, Chairman Shri Anil S. Supanekar Shri Anil Vidyarti Shri Sujit K Mandal Shri Mahendra Kumar Sharma Shri S.P. Arora, Managing Director Institution CEO & MD, IFCI Ltd. New Delhi Member, Project Consultant Technical Advisor Whole Time Director, IFCI, Delhi Entrepreneur Chief General Manager, IFCI LTD.

Present Business Activities

Over the years, IFCI Venture acquired expertise and experience of investing in technologyoriented & innovative projects. Since its inception, it has provided finance to over 400 ventures and supported commercialization of over 50 new technologies. It has pioneered efforts for widening entrepreneurial base in the country and catalysed the introduction of Venture Capital activity in India.
y y y

Management of PE/VC Funds Advisory Services Short term lending

Success Stories
1) Benda Amtek Ltd. (Benda): Benda is engaged in manufacturing high precision

engineering automotive components mainly fly wheel ring gears, assemblies for application to cars, two-wheelers, LCV, HCV, and stationary engines. Benda's flywheel ring gears production is amongst the largest in India. Benda is also an OEM supplier for Maruti Udyog Limited, Hero Honda, LML, ILJIN (Hyundai), Escorts, Eicher, Mahindra, Telco, Hyundai, New Holland Tractors, L&T John Deere, Yamaha, Bajaj Auto, Simpson, Hindustan Motors, Honda Scooters and Sumitomo Corporation etc. Benda is also a major supplier to the replacement market.

G Surgiwear Ltd.: Surgiwear manufactures over 300 types of medical devices including implants, hydrocephalus shunt etc. It caters to various fields of medicine including products being manufactured for neurosurgery, orthopedics, plastic surgery, urosurgery, burns and wound treatment, dental surgery etc. Most of the products manufactured by the Company are exported to more than 50 countries in the world.