VENTURE CAPITAL AND ITS AVENUES PPT.pptx

AVENUES OF VENTURE CAPITAL

1. VENTURE CAPITAL

2. Evolution of Venture Capital 1960s-1970s : Growth and Institutionalization : The venture capital industry began to grow, with the establishment of several prominent VC firms such as Kleiner Perkins and Sequoia Capital . Regulatory Changes : The Small Business Investment Act of 1958 allowed the creation of Small Business Investment Companies (SBICs), providing government-backed funding to encourage investment in small businesses . 1980s : Boom and Bust : The industry experienced rapid growth, followed by a downturn due to economic recession and market corrections . Technology Focus : Investments increasingly focused on the burgeoning tech sector, with significant investments in companies like Apple and Genentech . 1990s : Dot-Com Era : The rise of the internet led to a surge in venture capital investments in tech startups, culminating in the dot-com bubble . Venture Capital Boom : Many now-prominent VC firms expanded during this period, and numerous successful tech companies were founded with VC backing.

3. Concept of Venture Capital Venture capital (VC) is a type of private equity financing that is provided by venture capital firms or individual investors to startups, early-stage, and emerging companies that have high growth potential. Venture capital is a crucial source of funding for companies that lack access to other forms of capital due to their newness, lack of tangible assets, or the high-risk nature of their business models. CONCEPT, AIMS AND FEATURES OF VENTURE CAPITAL

4. Aims of Venture of Capital