venture capital ppt types stages function

venture capital ppt types stages function

1. Venture Capital

2. Definition
Venture capital is defined as long-term funds in equity
or semi-equity form to finance hi-tech projects
involving high risk and yet having strong potential of
high profitability.

3. Features :-
Invt. Made in equity, investors wait for 5-7 years to reap
the benefits of capital gain.
Investments are made in innovative projects
Investors does not interfere in day-to-day business
affairs.
Capital need not to be repaid in the course of business
but realized through exist route (stock exchange)

4. Venture capital Investment process
1.Establishment of contact between the entrepreneur and the
venture capitalist.
2.Preliminary Evaluation
3.Detailed approval.
4.Sensitivity analysis.
5.Investment in the project
6.Monitoring the project and post investment support.

5. Stages in Venture Capital financing
1.Early stage financing
a.Seed Capital
b.Start-up stage financing
c.Second round financing
2.Later stage financing
a.Expansion finance
b.Replacement capital
c.Management capital
d.Rescue capital.

6. Types of Venture Capital Organization
Captive venture capital funds
Independent venture capital funds
Government funds

7. Exit route for Venture Capital
a.Going Public.
b.Sale of shares to entrepreneurs.
c.Sale of company to another company.
d.Finding a new investor.
e.Liquidation.