Venturecapital
Venturecapital
Venturecapital
Concept of Venture
Capital
The term venture capital comprises of two words
of high and
enterprises.
new
technology
based
High Risk
By definition the Venture capital financing is
Features of Venture
Capital
High Tech
Features of Venture
Capital
Equity Participation & Capital Gains
Participation In Management
Venture capital provides value addition by
Length of Investment
Venture capitalist help companies grow,
Features of Venture
Capital
Illiquid Investment
Venture capital investments are illiquid, that is,
product
development,
market
research,
building a management team and developing a
business plan.
2. Start up Capital
It is the second stage in the venture capital cycle and is
marketing
and
may be:
Little or no sales revenue.
Cash flow and profit still negative.
A small but enthusiastic management
team which consists of people with
technical and specialist background and
with little experience in the management
of growing business.
negative reasons.
Negative reasons include:
Cost overruns in market development.
Failure of new product to live up to sales forecast.
Need to re-position products through a new
marketing campaign.
Need to re-define the product in the market place
once the product deficiency is revealed.
Expansion
/ Development
Finance
An enterprise established
in a given market
increases its profits
Replacement Finance
It means substituting one shareholder for another,
Buy
Buy and
ina Financing
It
is aout
recent /development
new form of investment by
Turnaround
Finance
It is rare form later stage
finance which most of the
Bridge Finance
It is the pre-public offering or pre-
Venture
Capital
Investment
Process
Deal origination:
In generating a deal flow, the VC investor creates
Screening:
VCFs, before going for an in-depth
Due Diligence:
Deal Structuring:
In this process, the venture capitalist and the
Post Investment
Activities:
Once the deal has been structured and
Exit:
Venture capitalists generally want to cash-out