Venture Capital Industry in India (Investment and Reinvestment decision)

Presented By: Dipesh Udwadia Jalak Patel

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

Venture Capital Provides: 1. Business Skill 2. Money (Fund)

where people feel more risky to put their money in new and emerging ventures. Hardly 5% of the total venture capital investment globally is given to really stage ventures. Subhash & Nair This study focus on the industry should concentrate more on early stage business opportunities instead of later stage. Kumar Venture capital industry is one, which will today prepare a base for a strong tomorrow. Vijayalakshman & Dalvi The board of directors are a more involved in the venture backed firms than boards where members do not have large ownership at stake. Robbie Variation in the boards involvement and impacted on its relevance in performance management of funded units. Robbie

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Finance new and rapidly growing companies. Purchase equity securities. Assists in the development of new products or services. Add value to the company through active participation. Take higher risks with the expectation of higher rewards. Have a long-term orientation.

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Canbank Venture Capital Fund Limited, Bangalore. Gujarat Venture Capital Fund 1995-97, Ahmedabad Industrial Venture Capital Limited, Chennai Karnataka Information Technology Venture Capital Fund, Bangalore India Auto Ancillary Fund, Mumbai

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Information Technology Fund, Mumbai Tamilnadu InfoTech Fund, Mumbai Orissa Venture Capital Fund, Mumbai Uttar Pradesh Venture Capital Fund, Mumbai

Venture capitalists not only support high technology projects they also finance any risky idea, they provide funds if one needs additional capital to expand his existing business or one has a new & promising project to exploit if one cannot obtain a conventional loan the requirement terms would create a burden during the period the firm is struggling to grown.

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Venture capitalist acts as partner not a financier

The objectives of our study are:

To find out the venture capital investment volume in India. To study the problem faced by venture capitalist in India. To study the future prospects of venture capital financing.

Research Design Type of data

Exploratory Research Secondary Data

I. II. III. IV. Internet (NVCA & IVCA) Magazine Journal Newspaper

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

Looking

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.

ahead for a bright future for India Inc.