S.J.R.S College Project on
Venture CapitalistParticipation Students
Names Pallavi Mohan Bhosale. Akshata Sakharam Dalvi. Varsha
Shamrao Jadhav. Priyanka Baburao Kadam. Preeti Shantappa Mhetre.
Pallavi Baban Tirlotkar.
Roll No. 05 09 14 18 28 44
Acknowledgement
It gives me immense pleasure to present the project on Study on
Venture Capitalist in Sequoia Capital Company. It was a totally
different & wonderful experience to be there in this project of
the greatest company. The researchers express her sincere gratitude
to Mrs.Renu Prasad . She also helped her a lot in enhancing
knowledge about the technicalities of banking and insurance sector.
The researcher confesses deep sense of gratitude towards our group
members or Madam for their constant encouragement and timely
suggestion. In all it was a great experience of working on this
project.
Type Industry Founded Founder(s) Headquarters Number of Location
Employees
: : : : :
Private Venture Capital 1972 Don Valentine Menlo Park,
California, USA
: :
6 130 worldwid
Sequoia Capital IndiaSequoia Capital in India has invested in
more than fifty companies during the past decade catering to the
founders, families and management who have selected us as their
business partners. With offices in Bangalore, Mumbai and New Delhi,
Sequoia Capital has a mixture of local experience and global ties
that let us work with great entrepreneurs to help build market
leading companies. We have learned that the only way to develop a
fabulous company is one step at a time. This only happens if the
company makes wonderful products or delivers a service that thrills
large numbers of customers. If that occurs then founders,
management, and employees of these companies prosper. It is only
then that the investor deserves to be rewarded. It has to happen in
that order. There are no shortcuts . Sequoia Capital is a
Californian venture capital firm located on Sand Hill Road in Menlo
Park, California. The Wall Street Journal has called Sequoia
Capital "one of the highest-caliber venture firms" and noted that
it is "one of Silicon Valley's most influential venture-capital
firms". The New York Times has called Sequoia "one of the top
venture firms in the Valley "and has said that it is "among the
most successful venture firms in Silicon Valley." The Washington
Post has called Sequoia Capital "one of the pre-eminent venture
capital firms in Silicon Valley." The firm is known for the
companies it has funded, and it estimates that 19% of the NASDAQs
value is made up of firms Sequoia has funded. Sequoia has funded
companies including Apple, Aruba Networks, Google, YouTube, PayPal,
Cisco Systems, Oracle, Electronic Arts, Yahoo!, NVIDIA,Navigenics,
Cotendo, Atari, Ameritox, Kayak , Meebo, Admob, Zapposs Green Dot
and LinkedIn. The firm has offices in the U.S., China, India
andIsrael. Sequoia invests in companies all over the world. Sequoia
was founded by Don Valentine in 1972. The firm's partners include
Don Valentine, Jake Anderson, Mickey Arabelovic, Roelof Botha,
Scott Carter, Randy Ditzler, Michael Dixon, Jim Goetz, Michael
Goguen, Gaurav Garg, Patrick Grady.
Definition:A venture capitalist is a person who invests in a
business venture, providing capital for start-up or expansion.
Venture capitalists are looking for a higher rate of return than
would be given by more traditional investments. Generally, venture
capitalists are looking for returns of 25 percent and up.
What's the difference between a venture capitalist and an angel
investor?A venture capitalist is a professional investor. He or she
manages a fund and is looking for suitable investments for that
fund. An angel investor is an individual who, while also looking
for a suitable investment, is also looking for a personal
opportunity. In other words, the venture capitalist may have no
business experience applicable to the industry your company is
involved in, and is focused on the potential rate of return your
company can provide. An angel investor often has business
experience relevant to your company and is interested in adding
value to your company, as well as making a return on his or her
investment.
Features of company : Elements of Sustainable Companies
Start-ups with these characteristics have the best chance of
becoming enduring companies. We like to partner with start-ups that
have: Clarity of Purpose Summarize the company's business on the
back of a business card. Large Markets Address existing markets
poised for rapid growth or change. A market on the path to a $1B
potential allows for error and time for real margins to develop.
Rich Customers Target customers who will move fast and pay a
premium for a unique offering. Focus Customers will only buy a
simple product with a singular value proposition. Pain Killers Pick
the one thing that is of burning importance to the customer then
delight them with a compelling solution. Think Differently
Constantly challenge conventional wisdom. Take the contrarian
route. Create novel solutions. Outwit the competition. Team DNA A
companys DNA is set in the first 90 days. All team members are the
smartest or most clever in their domain. "A" level founders attract
an "A" level team. Agility Stealth and speed will usually help
beat-out large companies. Frugality Focus spending on what's
critical. Spend only on the priorities and maximize
profitability.
Stages of Growing Sequoia Capital Company
I.
Early stages
Sequoia Capital invests between $1M-$10M in startups across the
energy, financial services, healthcare services,internet, mobile,
outsourcing services. The most successful venture stage companies
embody the elements of a sustainable company. The first element is
clarity of purpose, when Sandy Lerner and Len Bozack atCisco
Systems stated we network networks or when Larry Page and Sergey
Brin Google described how they wanted to make information easily
accessible it was immediately apparent that these individuals had a
clear sense of the direction they wanted to head. Most of these
founders were developing products they wanted to use themselves.
Only later did they find out that a lot of other people in the
world had the same need.
II.
Growth Stage
Sequoia Capital invests between $10M-$50M in companies
addressing the consumer services, energy, financial
services,healthcare services, internet, mobile, outsourcing
services and technology markets. We prefer to be the first investor
and business partner in a growth stage company that is profitable
and fast growing and where the team and products (or services) are
proven. Ideally, after our investment, the founders continue to
lead the company or serve as a functional contributor or beacon for
the marketplace. Growth companies have found that we can help them
deepen their management teams, bring advisors and directors that
are beyond their immediate circle, assist with expansion into
distant markets, assist with the assessment of potential
acquisitions and prepare for a public offering. We have had the
privilege of working with many founders and managers through the
growth stage and into the public lives of their companies.
Sequoia's new growth fund take its total assets under management
to $1.8B, a tad lower than ChrysCapital's $2.25B.Sequoia Capital
India has today announced th e closing of its second growth equity
fund dedicated to India Sequoia Capital India Growth Fund II. The
fund has raised $725 million in this fund, taking its total funds
under management to $1.8 billion. This will take Sequoia closer to
Ashish Dhawan's ChrysCapital ($2.25 billion) and ICICI Venture
($2.5 billion). With the closure of the latest fund, Abhay Pandey,
who joined Sequoia Capital India in 2007 as an executive director,
has been promoted to Managing Director. Sequoia has so far raised
five funds. It has a growth fund of about $400 million (Sequoia
Capital India Growth Fund I) raised in 2006, and three venture
capital fund totalling $600-650 million (see table). The new growth
fund will seek to invest in late stage, pre-IPO and public market
companies India Sumir Chadha, Managing Director, Sequoia Capital
India, said in a release, "The raise of Sequoia
Capital India Growth Fund II demonstrates our belief in the
strong growth story in India, and builds on the performance of our
first growth fund. This fund allows us to offer the powerful
Sequoia Capital platform of global networks and local knowledge to
growth companies and help them expand into market leaders. We
believe that India has a very high number of promising companies
that are poised to take their businesses to the next level and we
are committed to investing and partnering with these firms to help
them achieve their goals, said Sandeep Singhal, Managing Director,
Sequoia Capital India. From its first Growth Fund of $400 million,
Sequoia has invested in companies like Caf Coffee Day, hydropower
firm Coastal Projects, menswear apparel firm Cotton County,
institutional brokerage firm Edelweiss Capital, luxury brand
operator Genesis Colours, contract research company GVK Bio,
telecom operator Idea Cellular, and microfinance lender SKS
Microfinance. Sequoia Capital India has invested in more than 50
companies which include Applabs, Bharti Telesoft, Dr Lal Pathlabs,
Firstsource, GlobalLogic, Indecomm Global and marketRx. These
investments span a broad range of sectors focused on high growth
companies and management teams with a strong potential to succeed.
Sequoia's Managing Directors include KP Balaraj, Sumir Chadha,
Surendra Jain, SK Jain, Abhay Pandey and Sandeep Singhal. The
operating partners are Naresh Malhotra and Mohit Bhatnagar.
WestBridge Capital Partners, which named as Sequoia Capital India
after its merger with Silicon Valley based Sequioa, launched its
$150 million first fund in 2000. Some its first investments were
Applabs, Bharti Telesoft, ICICI OneSource (Firstsource Solutions),
MarketRx, Edelweiss , Shaadi, and Times Internet, a others. Sequoia
and WestBridge had joined hands in their making two coinvestments,
Bharti Telesoft and Mauj.
Recent Development in Sequoia Capital
Sequoia Capital has picked up a stake in eClerx, a knowledge
process outsourcing firm, for around Rs 43 crore.Sequoia Capital
India continues to cherry pick stocks from the open markets. The
venture and growth capital investor has picked up a 6.8% stake in
eClerx Services Ltd from open markets for around Rs 43 crore.
eClerx was one of the first Indian knowledge process outsourcing
firms to go for an IPO and was listed in 2007. The company provides
data analytics and data process management services to the retail,
manufacturing and financial services industries. The stake has been
picked up from Burwood Ventures, an investment firm based in Virgin
Islands which invested in 2005. Burwood held a 17.49% stake in
eClerx as of June-end, 2009. The stake was picked at a share price
of Rs 330, near its 52week high of Rs 340. eClerx reported FY09
revenues of Rs 193.2 crore as against Rs 128.3 crore in the
corresponding period last year. The profits after tax for the year
stood at Rs 61.8 crore. Sequoia Capital India has been aggressively
picking up stakes in companies from open market. Sequoia's managing
director Sumir Chadha told Mint in June that the firm had invested
in seven listed companies between October and February 2009,
picking up stake from open markets. The investments have been made
from Sequoia's first growth fund, whose size was $400 million. It
invested $9.3 million in Hyderabad-based Nagarjuna Construction Co.
Ltd, and exited the investment at $22.3 million when the markets
bounced since May. Sequoia has also invested in Info Edge Ltd, the
owners of Naukri.com.
Big shakeup for Sequoia Capital IndiaVenture capital firm
Sequoia Capital has broken up with the founding members of its
India investment team, following a dispute over investment
strategy. VC Circle first reported the news, which Fortune has
since confirmed with one of Sequoia's limited partners. "We
received information about the situation just this morning," the LP
said. An official statement is expected within the next 24 hours.
Sequoia moved into India back in early 2006, by "acquiring" a local
venture capital group called Westbridge Capital Partners.
Westbridge's four founding partners continued to manage legacy
investments out of its first fund ($140 million, raised in 2000)
and continued making investments out of a $200 million vehicle
raised several years later. Moving forward, the Westbridge team --
renamed Sequoia Capital India -- invested out of more than $1
billion of Sequoia-branded funds, alongside new staffers in
Bangalore, Mumbai and New Delhi offices. Portfolio companies
include Cafe Coffee Day, Dr. DelPath Labs and Druva Software. Most
of those deals were early-stage or growth-stage investments, but it
seems that the Westbridge founders now believe that better returns
can be found among listed mid-cap Indian companies. Sequoia wanted
to stay focused on private companies, thus causing the two sides to
go their separate ways. The Westbridge quartet is expected to begin
investing immediately by using both personal monies and dry powder
remaining in the second Westbridge fund. A new fundraise could come
later this year. Sequoia did not return requests for comment, but
the VC Circle report says that it expects to retain at least five
senior investment pros in India.
Sequoia Capital strikes gold in Manappuram Gold Loans Gets 5x
returns in 2 yearsSequoia has sold its entire 11% stake in
Manappuram General Finance and Leasing Ltd, a non-banking finance
company that provides gold loans through the open market for about
Rs 340 crore. Sequoia had invested in the NBFC more than two years
ago in 2007 by paying Rs 142 per share. However, the exit deal was
concluded at about Rs 740 per share.
Five investment firms including Sloane Robinson, Algebris,
Wellington and New Vernon are believed to have picked up the equity
from Sequoia.The company is yet to confirm the details of the
deal.
With assets under management of about Rs 2,550 crore as of
March, 2010, Manappuram has emerged as one of the largest NBFCs
with a focus on gold loans in India. Mannappuram is currently
managing about 24 tonnes of gold now which it keeps as pure
collateral. There is 55,000 tonnes of gold in Indian households
valued at Rs 50 lakh crore and hence the company sees huge
possibilities in the gold loan sector.
T he company charges about 15-25% interest on the loans and has
a turnover of about Rs 8,000 crore. It claims to have
non-performing assets(NPAs) of only about 0.25%.
Sequoia Capital Awarded Most Respected Private Equity Funding
Firm in The GlobeESparks 2011 is the Indias largest showcase of
eCommerce Start Ups, As per the official data, there was 227
eCommerce start ups from all over India participated and we came on
the top 12 hottest eCommerce start ups in the country for the year
2011. The winners were chosen by the Sequoia Capital, the most
respected PE Funding firm in the globe, Microsoft and many other
respected people in the eCommerce business.
Winning a prestigious award is a great thing, above that, it was
a fantastic and fruitful day for business.
