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INTRODUCTION t Vent"re Cap$ta,

1.1 VENTURE CAPITAL

S-a,, "*$ne**e* ne/er *ee- t ha/e en"%h -ne+. &an'er* an! S"pp,$er*0

nat"ra,,+0 are $-prtant $n )$nan#$n% *-a,, "*$ne** %rth thr"%h ,an* an! #re!$t0

"t an e"a,,+ $-prtant *"r#e ) ,n% ter-. rth Cap$ta, $* the /ent"re #ap$ta,

)$r-. Vent"re Cap$ta, )$nan#$n% -a+ ha/e an etra n"*0 )r $) a *-a,, )$r- ha* an

a!e"ate e"$t+ a*e an'* are -re $,,$n% t eten! #re!$t.

Vent"re #ap$ta, $* -ne+ pr/$!e! + pr)e**$na,* h $n/e*t a,n%*$!e

-ana%e-ent $n +"n%0 rap$!,+ %r$n% #-pan$e* that ha/e the ptent$a, t !e/e,p

$nt *$%n$)$#ant e#n-$# #ntr$"tr*. Vent"re #ap$ta, $* an $-prtant *"r#e )

e"$t+ )r *tart"p #-pan$e*.

Vent"re #ap$ta, $* #ap$ta, t+p$#a,,+ pr/$!e! + "t*$!e $n/e*tr* )r )$nan#$n% ) ne0

%r$n% r *tr"%%,$n% "*$ne**e*. Vent"re #ap$ta, $n/e*t-ent* %enera,,+ are h$%h r$*'

$n/e*t-ent* "t ))er the ptent$a, )r a/e a/era%e ret"rn* an!7r a per#enta%e )

ner*h$p ) the #-pan+. A /ent"re #ap$ta,$*t 8VC9 $* a per*n h -a'e* *"#h

$n/e*t-ent*. A /ent"re #ap$ta, )"n! $* a p,e! $n/e*t-ent /eh$#,e 8)ten a

partner*h$p9 that pr$-ar$,+ $n/e*t* the )$nan#$a, #ap$ta, ) th$r!part+ $n/e*tr* $n

enterpr$*e* that are t r$*'+ )r the *tan!ar! #ap$ta, -ar'et* r an' ,an*.

The ter- :Vent"re Cap$ta,; $* "n!er*t! $n -an+ a+*. In a narr *en*e0 $t re)er*t0 $n/e*t-ent $n ne an! tr$e! enterpr$*e* that are ,a#'$n% a *ta,e re#r! ) %rth.In a ra!er *en*e0 /ent"re #ap$ta, re)er* t the #--$t-ent ) #ap$ta, a**hareh,!$n%0 )r the )r-",at$n an! *ett$n% "p ) *-a,, )$r-* *pe#$a,$<$n% $n ne

$!ea* r ne te#hn,%$e*. It $* nt -ere,+ an $n=e#t$n ) )"n!* $nt a ne )$r-0 $t $*a *$-",tane"* $np"t ) *'$,, nee!e! t *et "p the )$r-0 !e*$%n $t* -ar'et$n% *trate%+an! r%an$<e an! -ana%e $t. It $* an a**#$at$n $th *"##e**$/e *ta%e* ) )$r-;*!e/e,p-ent $th !$*t$n#t$/e t+pe* ) )$nan#$n% apprpr$ate t ea#h *ta%e ) !e/e,p-ent.

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A##r!$n% t Internat$na, F$nan#e Crprat$n 8IFC90 /ent"re #ap$ta, $* e"$t+ r

e"$t+ )eat"re! #ap$ta, *ee'$n% $n/e*t-ent $n ne $!ea*0 ne #-pan$e*0 ne

pr!"#t$n0 ne pr#e** r ne *er/$#e* that ))er the ptent$a, ) h$%h ret"rn* n

$n/e*t-ent*.

A* !e)$ne! $n Re%",at$n 28-9) SE&I 8Vent"re Cap$ta, F"n!*9 Re%",at$n 0 1>>6

?/ent"re #ap$ta, )"n! -ean* a )"n! e*ta,$*he! $n the )r- ) a #-pan+ r tr"*t

h$#h ra$*e* -n$e* thr"%h ,an*0 !nat$n* $**"e ) *e#"r$t$e* r "n$t* a* the #a*e

-a+ e0 an! -a'e* r prp*e* t -a'e $n/e*t-ent* $n a##r!an#e $th the*e

re%",at$n*.

Th"* /ent"re #ap$ta, $* the #ap$ta, $n/e*te! $n +"n%0 rap$!,+ %r$n% r #han%$n%

#-pan$e* that ha/e the ptent$a, )r h$%h %rth. The VC -a+ a,* $n/e*t $n a )$r-

that $* "na,e t ra$*e )$nan#e thr"%h the #n/ent$na, -ean*.

Pr)e**$na,,+ -ana%e! /ent"re #ap$ta, )$r-* %enera,,+ are pr$/ate partner*h$p* r

#,*e,+he,! #rprat$n* )"n!e! + pr$/ate an! p",$# pen*$n )"n!*0 en!-ent

)"n!*0 )"n!at$n*0 #rprat$n*0 ea,th+ $n!$/$!"a,*0 )re$%n $n/e*tr*0 an! the

/ent"re #ap$ta,$*t* the-*e,/e*.

Vent"re #ap$ta,$*t* %enera,,+@

F$nan#e ne an! rap$!,+ %r$n% #-pan$e*

P"r#ha*e e"$t+ *e#"r$t$e*

A**$*t $n the !e/e,p-ent ) ne pr!"#t* r *er/$#e*

A!! /a,"e t the #-pan+ thr"%h a#t$/e part$#$pat$n

Ta'e h$%her r$*'* $th the epe#tat$n ) h$%her rear!*

Ba/e a ,n%ter- r$entat$n

hen #n*$!er$n% an $n/e*t-ent0 /ent"re #ap$ta,$*t* #are)",,+ *#reen the te#hn$#a, an!

"*$ne** -er$t* ) the prp*e! #-pan+. Vent"re #ap$ta,$*t* n,+ $n/e*t $n a *-a,,

per#enta%e ) the "*$ne**e* the+ re/$e an! ha/e a ,n%ter- per*pe#t$/e. $n%

)rar!0 the+ a#t$/e,+ r' $th the #-pan+* -ana%e-ent + #ntr$"t$n% the$r

eper$en#e an! "*$ne** *a//+ %a$ne! )r- he,p$n% ther #-pan$e* $th *$-$,ar

%rth #ha,,en%e*.

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Vent"re #ap$ta,$*t* -$t$%ate the r$*' ) /ent"re $n/e*t$n% + !e/e,p$n% a prt),$ )

+"n% #-pan$e* $n a *$n%,e /ent"re )"n!. (an+ t$-e* the+ $,, #$n/e*t $th ther

pr)e**$na, /ent"re #ap$ta, )$r-*. In a!!$t$n0 -an+ /ent"re partner*h$p $,, -ana%e

-",t$p,e )"n!* *$-",tane"*,+. Fr !e#a!e*0 /ent"re #ap$ta,$*t* ha/e n"rt"re! the

%rth ) A-er$#a* h$%h te#hn,%+ an! entreprene"r$a, #--"n$t$e* re*",t$n% $n

*$%n$)$#ant = #reat$n0 e#n-$# %rth an! $nternat$na, #-pet$t$/ene**.

C-pan$e* *"#h a* D$%$ta, E"$p-ent Crprat$n0 App,e0 Fe!era, Epre**0 C-pa0

S"n ($#r*+*te-*0 Inte,0 ($#r*)t0 ah0 A$rte, an! enente#h are )a-"*

ea-p,e* ) #-pan$e* that re#e$/e! /ent"re #ap$ta, ear,+ $n the$r !e/e,p-ent.

Vent"re Cap$ta, $* the "*$ne** ) e*ta,$*h$n% an $n/e*t-ent )"n! $n the )r- )

e"$t+ )$nan#$n% /$a $n/e*t-ent* $n the #--n *t#'*0 pre)erre! *t#'* an!

#n/ert$,e !eent"re* ) /ar$"* #-pan$e*. The*e #-pan$e* are *een t ha/e a

h$%h %rth ptent$a, an! are a,e t e ,$*te! n the *t#' e#han%e $n r!er t %a$n

the h$%he*t ret"rn* $n !$/$!en!* an! #ap$ta, %a$n.

1.2 The Or$%$n ) Vent"re Cap$ta,

In the 1>2* G 3*0 the ea,th+ )a-$,$e* ) an! $n!$/$!"a,* $n/e*tr* pr/$!e! the

*tart "p -ne+ )r #-pan$e* that ",! ,ater e#-e )a-"*. Ea*tern A$r,$ne* an!

Her are the -re )a-"* /ent"re* the+ )$nan#e!. A-n% the ear,+ VC )"n!* *et "p

a* the ne + the R#')e,,er Fa-$,+ h$#h *tarte! a *pe#$a, )"n! #a,,e! VENROC

$n 1>50 t )$nan#e ne te#hn,%+ #-pan$e*.

USA $* the $rth p,a#e ) Vent"re Cap$ta, In!"*tr+ a* e 'n $t t!a+. D"r$n% -*t

$t* h$*tr$#a, e/,"t$n0 the -ar'et )r arran%$n% *"#h )$nan#$n% a* )a$r,+ $n)r-a,0

re,+$n% pr$-ar$,+ n the re*"r#e* ) ea,th+ )a-$,$e*.

In 1>460 A-er$#an Re*ear#h an! De/e,p-ent Crprat$n 8ARD90 a p",$#,+ tra!e!0

#,*e!en! $n/e*t-ent #-pan+ a* )r-e!. ARD* e*t 'nn $n/e*t-ent a* the

*tart"p )$nan#$n% $t pr/$!e! $n 1>5J )r #-p"ter -a'er D$%$ta, E"$p-ent Crp.

ARD a* e/ent"a,,+ pr)$ta,e0 pr/$!$n% $t* r$%$na, $n/e*tr* $th a 15.J per#ent

ann"a, rate ) ret"rn /er $t* tent+)$/e +ear* a* an $n!epen!ent )$r-. enera,

Dr$t0 a pr)e**r at Bar/ar! &"*$ne** S#h,0 *et "p the ARD0 the )$r*t )$r-0 a*

pp*e! t pr$/ate $n!$/$!"a,*0 at (IT t )$nan#e the #--er#$a, pr-t$n )

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a!/an#e! te#hn,%+ !e/e,pe! $n the US Un$/er*$t$e*. ARD* appra#h a* a #,a**$#

VC $n the *en*e that $t "*e! n,+ e"$t+0 $n/e*te! )r ,n% ter-0 an! a* prepare! t

,$/e $th ,*er*. ARD* $n/e*t-ent $n D$%$ta, E"$p-ent Crprat$n 8DEC9 $n 1>5K

a* a ater*he! $n the h$*tr+ ) VC )$nan#$n%.

The n"-er ) *"#h *pe#$a,$<e! $n/e*t-ent )$r-*0 e/ent"a,,+ t e #a,,e! /ent"re

#ap$ta, )$r-*0 e%an t - $n the ,ate 1>5*.The %rth a* a$!e! $n ,ar%e part +

the #reat$n $n 1>5J ) the )e!era, S-a,, &"*$ne** In/e*t-ent C-pan+ pr%ra-.

B"n!re!* ) S&IC* ere )r-e! $n the 1>6*0 an! -an+ re-a$n $n perat$n t!a+.

S, rth $n 1>6* G ear,+ 1>K*0 an! the F$r*t &- ear $n 1>KJ

D"r$n% the 1>6* an! 1>K*0 /ent"re #ap$ta, )$r-* )#"*e! the$r $n/e*t-ent a#t$/$t+

pr$-ar$,+ n *tart$n% an! epan!$n% #-pan$e*. (re )ten than nt0 the*e #-pan$e*

ere ep,$t$n% rea'thr"%h* $n e,e#trn$#0 -e!$#a, r !atapr#e**$n% te#hn,%+.

A* a re*",t0 /ent"re #ap$ta, #a-e t e a,-*t *+nn+-"* $th te#hn,%+ )$nan#e.

Vent"re #ap$ta, )$r-* *"))ere! a te-prar+ !nt"rn $n 1>K40 hen the *t#' -ar'et

#ra*he! an! $n/e*tr* ere nat"ra,,+ ar+ ) th$* ne '$n! ) $n/e*t-ent )"n!. 1>KJ

a* the )$r*t $% +ear )r /ent"re #ap$ta,. The $n!"*tr+ ra$*e! appr$-ate,+ K5

-$,,$n $n 1>KJ.

B$%h* G L* ) the 1>J*

In 1>J0 ,e%$*,at$n -a!e $t p**$,e )r pen*$n )"n!* t $n/e*t $n a,ternat$/e a**et*

#,a**e* *"#h a* /ent"re #ap$ta, )$r-*. 1>J3 a* the - +ear the *t#' -ar'et ent

thr"%h the r) an! there ere /er 1 $n$t$a, p",$# ))er$n%* )r the )$r*t t$-e $n

U.S. h$*tr+. That +ear a* a,* the +ear that -an+ ) t!a+* ,ar%e*t an! -*t

pr-$nent )$r-* ere )"n!e!.

D"e t the e#e** ) IPO* an! the $neper$en#e ) -an+ /ent"re #ap$ta, )"n!

-ana%er*0 VC ret"rn* ere /er+ , thr"%h the 1>J*. VC )$r-* retren#he!0

r'$n% har! t -a'e the$r prt),$ #-pan$e* *"##e**)",. The r' pa$! )) an!

ret"rn* e%an #,$-$n% a#' "p.

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&- T$-e* $n the 1>>*

The 1>>* ha/e een0 + )ar the e*t +ear* )r the Vent"re Cap$ta, In!"*tr+. The

en%$ne )r %rth ha* een the )a/"ra,e e#n-$# #,$-ate $n the US #"p,e! $th

the a!/ent ) the Internet -. D"r$n% th$* !e#a!e0 the $ntere*t rate* ere , an!

the P7E* ere /er+ h$%h #-pare! t h$*tr$#a, a/era%e*. F$na,,+0 the rate ) (GA

a#t$/$t+ ha* $n#rea*e! !ra-at$#a,,+ $n the 1>>*0 #reat$n% -re pprt"n$t$e* )r

*-a,,0 /ent"rea#'e! #-pan$e* t e$t 8#a*h "t9 at h$%h pr$#e*.

The a!/ent ) the Internet a* a ne -e!$"- )r th per*na, an! "*$ne**

#--"n$#at$n* an! #--er#e #reate! an a/a,an#he ) pprt"n$t$e* )r /ent"re

#ap$ta,$*t* $n the -$! an! ,ate 1>>*. A* a re*",t0 the $n!"*tr+ ha* eper$en#e!

etrar!$nar+ %rth $n the pa*t )e +ear*0 th $n the n"-er ) )$r-*0 an! $n the

a-"nt ) #ap$ta, the+ ha/e ra$*e!.

1.3 The &a#'%r"n!

In Septe-er 1>>50 /ern-ent ) In!$a $**"e! %"$!e,$ne* )r /er*ea* /ent"re

#ap$ta, $n/e*t-ent $n In!$a herea* the Centra, &ar! ) D$re#t Tae* 8C&DT9 $**"e!

%"$!e,$ne* )r ta ee-pt$n p"rp*e*. 8The Re*er/e &an' ) In!$a %/ern* the

$n/e*t-ent an! ), ) )re$%n #"rren#+ $n an! "t ) In!$a.9 A* a part ) $t* -an!ate

t re%",ate an! t !e/e,p the In!$an #ap$ta, -ar'et*0 Se#"r$t$e* an! E#han%e &ar!

) In!$a 8SE&I9 )ra-e! the SE&I 8Vent"re Cap$ta, F"n!*9 Re%",at$n*0 1>>6.

P"r*"ant t the re%",atr+ )ra-er'0 *-e !-e*t$# VCF* ere re%$*tere! $th

SE&I. S-e /er*ea* $n/e*t-ent* a,* #a-e thr"%h the (a"r$t$"* r"te. Be/er0

the /ent"re #ap$ta, $n!"*tr+0 "n!er*t! %,a,,+ a* $n!epen!ent,+ -ana%e!0

!e!$#ate! p,* ) #ap$ta, that )#"* n e"$t+ r e"$t+ ,$n'e! $n/e*t-ent* $n

pr$/ate,+ he,!0 h$%h %rth #-pan$e* 8The Vent"re Cap$ta, C+#,e0 -per* an!

Lerner0 1>>>9 $* *t$,, re,at$/e,+ $n a na*#ent *ta%e $n In!$a. F$%"re* )r- the In!$an

Vent"re Cap$ta, A**#$at$n 8IVCA9 re/ea, that0 t$,, 20 ar"n! R*. 202 #rre

8US 5 -$,,$n9 ha! een #--$tte! + the !-e*t$# VCF* an! ))*hre )"n!*

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h$#h are -e-er* ) IVCA. F$%"re* a/a$,a,e )r- pr$/ate *"r#e* $n!$#ate that

/era,, )"n!* #--$tte! are ar"n! US 1.3 $,,$n.

F"n!* that #an e $n/e*te! ere ,e** than 5 per#ent ) the #--$tte! )"n!* an!

a#t"a, $n/e*t-ent* ere ,er *t$,,. At the *a-e t$-e0 !"e t e#n-$# ,$era,$*at$n

an! $n#rea*$n% %,a, "t,' $n In!$a0 an $n#rea*e! aarene** an! $ntere*t )

!-e*t$# a* e,, a* )re$%n $n/e*tr* $n /ent"re #ap$ta, a* *er/e!. h$,e n,+ J

!-e*t$# VCF* ere re%$*tere! $th SE&I !"r$n% 1>>6>J0 -re than 3 a!!$t$na,

)"n!* ha/e a,rea!+ een re%$*tere! $n 21.

In*t$t"t$na, $ntere*t $* %r$n% an! )re$%n /ent"re $n/e*t-ent* are a,* n the

$n#rea*e. $/en the prper en/$rn-ent an! p,$#+ *"pprt0 there $* a tre-en!"*

ptent$a, )r /ent"re #ap$ta, a#t$/$t+ $n In!$a.

The F$nan#e ($n$*ter0 $n the &"!%et 2 *pee#h ann"n#e!0 ?Fr *t$n% h$%h te#h

*e#tr* an! *"pprt$n% )$r*t %enerat$n entreprene"r*0 there $* an a#"te nee! )r h$%her

$n/e*t-ent* $n /ent"re #ap$ta, a#t$/$t$e*.? Be a,* *a$! that the %"$!e,$ne* )r the

re%$*trat$n ) /ent"re #ap$ta, a#t$/$t+ $th the Centra, &ar! ) D$re#t Tae* ",!

e har-n$<e! $th th*e )r re%$*trat$n $th the Se#"r$t$e* an! E#han%e &ar! )

In!$a.

SE&I !e#$!e! t *et "p a #--$ttee n /ent"re #ap$ta, t $!ent$)+ the $-pe!$-ent*

an! *"%%e*t *"$ta,e -ea*"re* t )a#$,$tate the %rth ) /ent"re #ap$ta, a#t$/$t+ $n

In!$a. eep$n% $n /$e the nee! )r %,a, per*pe#t$/e0 $t a* !e#$!e! t a**#$ate

In!$an entreprene"r )r- S$,$#n Va,,e+ $n the #--$ttee. The *ett$n% "p ) th$*

#--$ttee a* pr$-ar$,+ -t$/ate! + the nee! t p,a+ a )a#$,$tat$n% r,e $n t"ne $th

the -an!ate ) SE&I0 t re%",ate a* e,, a* !e/e,p the -ar'et. The #--$ttee

hea!e! + . &. Chan!ra*e'har0 Cha$r-an0 E!"* C--"n$#at$n* In#.0 *"-$tte!

$t* reprt n J Man"ar+ 2.

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1.4 8a9(ean$n% ) Vent"re Cap$ta,

Vent"re #ap$ta, $* ,n%ter- r$*' #ap$ta, t )$nan#e h$%h te#hn,%+ pr=e#t* h$#h

$n/,/e r$*' "t at the *a-e t$-e ha* *trn% ptent$a, )r %rth. Vent"re #ap$ta,$*t

p,* the$r re*"r#e* $n#,"!$n% -ana%er$a, a$,$t$e* t a**$*t ne entreprene"r $n the

ear,+ +ear* ) the pr=e#t. On#e the pr=e#t rea#he* the *ta%e ) pr)$ta$,$t+0 the+ *e,,

the$r e"$t+ h,!$n%* at h$%h pre-$"-.

89 De)$n$t$n ) the Vent"re Cap$ta, C-pan+

A /ent"re #ap$ta, #-pan+ $* !e)$ne! a* a )$nan#$n% $n*t$t"t$n* h$#h =$nt* an

entreprene"r a* a #pr-ter $n a pr=e#t an! *hare* the r$*'* an! rear!* ) the

enterpr$*e.

1.5 Chara#ter$*t$#* ) Vent"re Cap$ta,

The three pr$-ar+ #hara#ter$*t$#* ) /ent"re #ap$ta, )"n!* h$#h -a+ the-

e-$nent,+ *"$ta,e a* a *"r#e ) r$*' )$nan#e are@

819 that $t $* e"$t+ r "a*$ e"$t+ $n/e*t-ent*

829 $t $* ,n%ter- $n/e*t-ent an!

839 $t $* an a#t$/e )r- ) $n/e*t-ent.

F$r*t0 /ent"re #ap$ta, $* e"$t+ r "a*$ e"$t+ e#a"*e the $n/e*tr a**"-e* r$*'.

There $* n *e#"r$t+ )r h$* $n/e*t-ent. Vent"re #ap$ta, )"n!* + part$#$pat$n% $n the

e"$t+ #ap$ta, $n*t$t"t$na,$<e the pr#e** ) r$*' ta'$n% h$#h pr-te* *"##e**)",

!-e*t$# te#hn,%+ !e/e,p-ent.

In/e*tr* ) /ent"re #ap$ta, ha/e n ,$"$!$t+ )r a per$! ) t$-e. Vent"re #ap$ta,$*t

r )"n!* hpe that the #-pan+ the+ are a#'$n% $,, thr$/e an! a)ter )$/e t *e/en

+ear* )r- -a'$n% the $n/e*t-ent $t $,, e ,ar%e an! pr)$ta,e en"%h t *e,, $t*

*hare* $n the *t#' -ar'et. &"t a rear! $* thee )r ,$"$!$t+ an! a$t$n%. The /ent"re

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#ap$ta,$*t* hpe t *e,, the$r *hare )r -an+ t$-e* hat the+ pa$! )r. I) the "n$t )a$,*

the /ent"re #ap$ta,$*t* ,**e* e/er+th$n%. The pra$,$t+ !$*tr$"t$n ) epe#te!

ret"rn* )r -*t /ent"re #ap$ta, $n/e*t-ent $* h$%h,+ *'ee! t the r$%ht. The *"##e**

rate $* 12 per#ent.

Se#n!,+0 /ent"re #ap$ta, $* ,n%ter- $n/e*t-ent $n/,/$n% th -ne+ an! t$-e.

F$na,,+0 /ent"re #ap$ta, $n/e*t-ent $n/,/e* part$#$pat$n $n the -ana%e-ent ) the

#-pan+. Vent"re #ap$ta,$*t part$#$pate* $n the &ar! an! %"$!e* the )$r- n *trate%$#

an! p,$#+ -atter*. The )eat"re* ) /ent"re #ap$ta, %enera,,+ are0 )$nan#$n% ne an!

rap$!,+ %r$n% #-pan$e* p"r#ha*e ) e"$t+ *hare* a**$*t $n tran*)r-at$n )

$nn/at$/e te#hn,%+ a*e! $!ea* $nt pr!"#t* an! *er/$#e* an! /a,"e t #-pan+

+ a#t$/e part$#$pat$n a**"-e r$*'* $n the epe#tat$n ) ,ar%e rear!* an! p**e** a

,n%ter- per*pe#t$/e. The*e )eat"re* ) /ent"re #ap$ta, ren!er $t e-$nent,+ *"$ta,e

a* a *"r#e ) r$*' #ap$ta, )r !-e*t$#a,,+ !e/e,pe! te#hn,%$e*.

Ne /ent"re prp*a,* $n h$%h te#hn,%+ area are attra#t$/e e#a"*e ) the

per#e$/e! p**$$,$t+ ) *"*tant$a, %rth an! #ap$ta, %a$n*. A,th"%h /ent"re

#ap$ta, e/,/e! a* a -eth! ) ear,+ *a%e )$nan#$n% $t $n#,"!e* !e/e,p-ent0

epan*$n an! "+"t )$nan#$n% )r "n$t* h$#h are "na,e t ra$*e )"n!* thr"%h

nr-a, )$nan#$n% #hanne,*. Un$t* $n !e/e,p$n% #"ntr$e* nee! )"n!* )r )$nan#$n%

/ar$"* *ta%e* ) !e/e,p-ent. S"#h a ra! appra#h ",! he,p /ent"re )"n!* t

!$/er*$)+ the$r $n/e*t-ent an! *prea! r$*'*.

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1.6 T+pe* ) Vent"re Cap$ta, F$r-*

Vent"re Cap$ta, #an e !$/$!e! $nt -an+ !$))erent t+pe* a##r!$n% t the

#hara#ter$*t$#* ) the *hareh,!er* an! *"r#e* ) $n/e*t-ent *"#h a* pr$/ate e"$t+

)$r-*0 an'*0 )$nan#$a, $n*t$t"t$n*0 pr$/ate #rprat$n*0 the %/ern-ent r $n*"ran#e

#-pan$e*.

enera,,+ there are three t+pe* ) r%an$<e! r $n*t$t"t$na, /ent"re #ap$ta, )"n!*@

/ent"re #ap$ta, )"n!* *et "p + an%e, $n/e*tr*0 that $*0 h$%h net rth $n!$/$!"a,

$n/e*tr* /ent"re #ap$ta, *"*$!$ar$e* ) #rprat$n* an! pr$/ate /ent"re #ap$ta,

)$r-*7 )"n!*. Vent"re #ap$ta, *"*$!$ar$e* are e*ta,$*he! + -a=r #rprat$n*0

#--er#$a, an' h,!$n% #-pan$e* an! ther )$nan#$a, $n*t$t"t$n*.

Vent"re )"n!* $n In!$a #an e #,a**$)$e! n the a*$* ) the t+pe ) pr-ter*.

F$nan#$a, $n*t$t"t$n* ,e! + ICICI /ent"re*0 ILFS0 et#. Pr$/ate /ent"re )"n!*

,$'e In!"*0 et#.

Re%$na, )"n!*@ ar"r% P$n#"*0 MF E,e#tra 8-*t,+ perat$n% "t ) Bn%

n%9.

Re%$na, )"n!* !e!$#ate! t In!$a@ Draper0 a,!en0 et#.

O))*hre )"n!*@ &ar$n%*0 TC0 BS&C0 et#.

Crprate /ent"re*@ /ent"re #ap$ta, *"*$!$ar$e* ) #rprat$n*.

An%e,*@ h$%h net rth $n!$/$!"a, $n/e*tr*.

(er#hant an'er* an! N&FC* h *pe#$a,$<e $n ?"%ht "t? !ea,* a,* )"n!

#-pan$e*.

On the a*$* ) %e%raph$#a, )#"*

Re%$na,

,a,

IT an! ITena,e! *er/$#e*

S)tare Pr!"#t* 8(a$n,+ Enterpr$*e)#"*e!9

$re,e**7Te,e#-7Se-$#n!"#tr

&an'$n%

On the a*$* ) $n!"*tr+ *pe#$a,t+

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(e!$a7Enterta$n-ent

&$ Te#hn,%+7&$ In)r-at$#*

Phar-a#e"t$#a,*

Cntra#t (an")a#t"r$n%

Reta$,

On the a*$* ) )"n!$n% *ta%e@

See!7ear,+

Late7-

P$pe

The Vent"re Cap$ta, )$r-* $n In!$a #an e #ate%r$<e! $nt the ),,$n% )"r %r"p*@

1. A,,In!$a DFI*pn*re! VCF* *"#h a* Te#hn,%+ De/e,p-ent an! In)r-at$n

C-pan+ ) In!$a Lt!. 8TDICI9 + ICICI0 R$*' Cap$ta, an! Te#hn,%+ F$nan#e

Crprat$n Lt!. 8RCTFC9 + IFCI an! R$*' Cap$ta, F"n! + ID&I

2. SFC*pn*re! VCF* *"#h a* "=arat Vent"re Cap$ta, Lt!. 8VCL9 + IIC an!

An!hra Pra!e*h Vent"re Cap$ta, Lt!. 8APVCL9 + APSFC

3. &an'*pn*re! VCF* *"#h a* Can)$na an! S&I Cap*

4. Pr$/ate VCF* *"pprte! + pr$/ate *e#tr #-pan$e* *"#h a* In!"* Vent"re

Cap$ta, F"n!0 Cre!$t Cap$ta, Vent"re F"n!.

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Chapter – 2

De/e,p-ent ) VCF $n Internat$na, Arena an! INDIA

2.1 VCF $n Internat$na, Arena

2.2 Vent"re Cap$ta, $n In!$a

2.3 F"t"re ) Vent"re Cap$ta, $n In!$a

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De/e,p-ent ) Vent"re Cap$ta,

2.1 The Internat$na, arena

The -!ern /ent"re #ap$ta, $n!"*tr+ e%an ta'$n% *hape $n the p*t – r,! ar II

+ear*. It $* )ten *a$! that pep,e !e#$!e t e#-e entreprene"r* e#a"*e the+ *ee

r,e -!e,* $n ther pep,e h ha/e e#-e *"##e**)", entreprene"r*. ("#h the

*a-e th$n% #an e *a$! a"t /ent"re #ap$ta,$*t*.

USA

The h$*tr+ ) the /ent"re #ap$ta, $n US tra#e* a#' t the per$! a)ter r,! ar II

hen a )e ea,th+ )a-$,+ %r"p* ,$'e R#'e)e,,er0 An!re Carne%$e an! ther* t'

the $n$t$at$/e. The /ent"re #ap$ta, $n!"*tr+ a* *tarte! + er%e Detr$t h

#,,arate! $n e*ta,$*h$n% Crprat$n at &*tn. Fr- 1>65 t 1>K2 near,+ 4

/ent"re #ap$ta, #-pan$e* ere )r-e! $th #--$tte! a**et* ) 5 -$,,$n. It $*

nte! that $n the US0 the /ent"re #ap$ta, $n!"*tr+ ha* een a**#$ate! $th te#hn,%+

!e/e,p-ent. In the 1>J*0 the US /ent"re $n!"*tr+ e%an t e*ta,$*h $t* "*$ne**

/er*ea* at ,ar%e.

U

In the U0 the !e/e,p-ent ) /ent"re #ap$ta, e* t the pr)e**$na,,+ -ana%e!

*pe#$a,$*t )"n! – Charter B"*e – *et "p $n 1>J )r pr/$!$n% r$*' e"$t+ )$nan#e )r

+"n% an! %r$n% *-a,, "*$ne**. In 1>J30 &r$t$*h Vent"re Cap$ta, A**#$at$n a*

e*ta,$*he! $th a -e-er*h$p ) 33 )"n!*0 h$#h r*e t 115 $n 1>>2.

MAPAN

In 1>630 3 /ern-ent a**$*te! #-pan$e* ere e*ta,$*he! $n T'+0 O*a'a an!

Na%+a0 t pr/$!e /ent"re #ap$ta, t *-a,, an! -e!$"- $n!"*tr$e*. Lea!$n% )$nan#$a,

$n*t$t"t$n* $n Mapan *tarte! /ent"re #ap$ta, #-pan$e* )r )$nan#$n% h$%h te#hn,%+

$n!"*tr$a, "n$t*. The rap$! %rth ) $n!"*tr+ $n Mapan $* #re!$te! t the ea*+

a/a$,a$,$t+ ) /ent"re #ap$ta,.

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2.2 VENTURE CAPITAL IN INDIA

Th$* a#t$/$t+ $n the pa*t a* p**$,+ !ne + the !e/e,p-enta, )$nan#$a, $n*t$t"t$n*

,$'e ID&I0 ICICI an! State F$nan#$a, Crprat$n*. The*e $n*t$t"t$n* pr-te!

ent$t$e* $n the pr$/ate *e#tr $th !et a* an $n*tr"-ent ) )"n!$n%.

Fr a ,n% t$-e )"n!* ra$*e! )r- p",$# ere "*e! a* a *"r#e ) VC. Th$* *"r#e

he/er !epen!e! a ,t n the -ar'et /a%ar$e*. An! $th the -$n$-"- pa$! "p

#ap$ta, re"$re-ent* e$n% ra$*e! )r ,$*t$n% at the *t#' e#han%e*0 $t e#a-e !$))$#",t

)r *-a,,er )$r-* $th /$a,e pr=e#t* t ra$*e )"n!* )r- p",$#.

In In!$a0 the nee! )r VC a* re#%n$*e! $n the Kth )$/e +ear p,an an! ,n% ter- )$*#a,

p,$#+ ) OI. In 1>K3 a #--$ttee n De/e,p-ent ) *-a,, an! -e!$"- enterpr$*e*

h$%h,$%hte! the nee! t )a*ter VC a* a *"r#e ) )"n!$n% ne entreprene"r* an!

te#hn,%+. VC )$nan#$n% rea,,+ *tarte! $n In!$a $n 1>JJ $th the )r-at$n )

Te#hn,%+ De/e,p-ent an! In)r-at$n C-pan+ ) In!$a Lt!. 8TDICI9

pr-te! + ICICI an! UTI.

The )$r*t pr$/ate VC )"n! a* *pn*re! + Cre!$t Cap$ta, F$nan#e Crprat$n

8CFC9 an! pr-te! + &an' ) In!$a0 A*$an De/e,p-ent &an' an! theC--nea,th De/e,p-ent Crprat$n /$<. Cre!$t Cap$ta, Vent"re F"n!. At the*a-e t$-e "=arat Vent"re F$nan#e Lt!. an! APIDC Vent"re Cap$ta, Lt!. ere*tarte! + *tate ,e/e, )$nan#$a, $n*t$t"t$n*. S"r#e* ) the*e )"n!* ere the )$nan#$a,$n*t$t"t$n*0 )re$%n $n*t$t"t$na, $n/e*tr* r pen*$n )"n!* an! h$%h netrth$n!$/$!"a,*. Th"%h an atte-pt a* a,* -a!e t ra$*e )"n!* )r- the p",$# an! )"n!ne /ent"re*0 the /ent"re #ap$ta,$*t* ha! har!,+ an+ $-pa#t n the e#n-$# *#enar$)r the net e$%ht +ear*

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ROTB OF FIR(S IN INDIA

ear

1>>5

1>>6

1>>K

1>>J

1>>>

2

N. ) F"n!*

4

K

1

6

5

4K

ear

21

22

23

24

25

26

N. ) F"n!*

12

6

2

3

1

2

S"r#e@ AVCM7IVCA

In!$a $* pr$-e tar%et )r /ent"re #ap$ta, an! pr$/ate e"$t+ t!a+0 $n% t /ar$"*

)a#tr* *"#h a* )a*t %r$n% 'n,e!%e a*e! $n!"*tr$e*0 )a/"ra,e $n/e*t-ent

pprt"n$t$e*0 #*t #-pet$t$/e r')r#e0 -$n% *t#' -ar'et* an! *"pprt$/e

re%",atr+ en/$rn-ent a-n% ther*. The *e#tr* here the #"ntr+ attra#t* /ent"re

#ap$ta, are IT an! ITES0 *)tare pr!"#t*0 an'$n%0 PSU !$*$n/e*t-ent*0

enterta$n-ent an! -e!$a0 $te#hn,%+0 phar-a#e"t$#a,*0 #ntra#t -an")a#t"r$n% an!

reta$,. An ))*hre /ent"re #ap$ta, #-pan+ -a+ #ntr$"te "pt 1 per#ent ) the

#ap$ta, ) a !-e*t$# /ent"re #ap$ta, )"n! an! -a+ a,* *et "p a !-e*t$# a**et

-ana%e-ent #-pan+ t -ana%e the )"n!. Vent"re #ap$ta, )"n!* 8VCF*9 an! /ent"re

#ap$ta, #-pan$e* 8VCC9 are per-$tte! "pt 4 per#ent ) the pa$! "p #rp"* ) the

!-e*t$# "n,$*te! #-pan$e*. Th$* #e$,$n% ",! e *"=e#t t re,e/ant e"$t+

$n/e*t-ent ,$-$t $n )r#e $n re,at$n t area* re*er/e! )r SSI. In/e*t-ent $n a *$n%,e

#-pan+ + a VCF7VCC *ha,, nt e#ee! 5 per#ent ) the pa$! "p #rp"* ) a

!-e*t$# VCF7VCC. The a"t-at$# r"te $* nt a/a$,a,e.

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2.3F"t"re ) Vent"re Cap$ta, $n In!$a

Rap$!,+ #han%$n% e#n-$# en/$rn-ent a##e,erate! + the h$%h te#hn,%+

ep,*$n0 e-er%$n% nee!* ) ne %enerat$n ) entreprene"r* $n the pr#e** an!

$na!e"a#+ ) the e$*t$n% /ent"re #ap$ta, )"n!*7*#he-e* are $n!$#at$/e ) the

tre-en!"* *#pe )r /ent"re #ap$ta, $n In!$a an! p$nter* t the nee! )r the

#reat$n ) a *"n! an! ra!a*e! /ent"re #ap$ta, -/e-ent In!$a.

There are -an+ entreprene"r* $n In!$a $th a %! pr=e#t $!ea "t n pre/$"*

entreprene"r$a, tra#' re#r! t ,e/era%e the$r )$r-*0 han!,e #"*t-er* an! an'er*.

Vent"re #ap$ta, #an pen a ne $n! )r *"#h entreprene"r* an! he,p the- t

,a"n#h the$r pr=e#t* *"##e**)",,+.

$th rap$! $nternat$na, -ar#h ) te#hn,%+0 !e-an! )r neer te#hn,%+ an!

pr!"#t* $n In!$a ha* %ne "p tre-en!"*,+. the pa#e ) !e/e,p-ent ) ne an!

$n!$%en"* te#hn,%+ $n the #"ntr+ ha* een *,a#' $n /$e ) the )a#t that *e/era,

pr#e** !e/e,pe! $n ,aratr$e* are nt #--er#$a,$<e! e#a"*e ) "n$,,$n%ne** )

pep,e t ta'e entreprene"r$a, r$*'*0 $.e. r$*' the$r )"n!* a* a,* "n!er% the r!ea, )

-ar'et$n% the pr!"#t* an! pr#e**. In *"#h a *$t"at$n0 /ent"re )$nan#$n% a**"-e*

-re *$%n$)$#an#e. It #an a#t nt n,+ a#t a* a )$nan#$a, #ata,+*t "t a,* pr/$!e *trn%

$-pet"* )r entreprene"r* t !e/e,p pr!"#t* $n/,/$n% neer te#hn,%$e* an!

#--er#$a,$<e the-. Th$* $,, %$/e a *t t the !e/e,p-ent ) ne te#hn,%+ an!

",! % a ,n% a+ $n ra!en$n% the $n!"*tr$a, a*e0 #reat$n ) =*0 pr/$!e a

thr"*t t eprt* an! he,p $n the /era,, enr$#h-ent ) the e#n-+.

Anther t+pe ) *$t"at$n #--n,+ )"n! $n "r #"ntr+ $* here the ,#a, %r"p an!

a -",t$nat$na, #-pan+ -a+ e rea!+ t enter $nt a =$nt /ent"re "t the )r-er

!e* nt ha/e *"))$#$ent )"n!* t p"t "p $t* *hare ) the e"$t+ an! the ,atter $*

re*tr$#te! t a #erta$n per#enta%e. Fr the per*na, rea*n* r e#a"*e ) #-pet$t$n0

the ,#a, %r"p -a+ nt e 'een t $n/$te an+ ne $n $t* $n!"*tr+ r an+ -a=r pr$/ate

$n/e*tr t #ntr$"te e"$t+ an! -a+ pre)er a /ent"re #ap$ta, #-pan+0 a* a ,e**

$nt$-ate,+ $n/,/e! an! te-prar+ *hareh,!er. Vent"re #ap$ta,$*t* #an a,* ,en! the$r

epert$*e an! *tan!$n% t the entreprene"r*.

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In *er/$#e *e#tr0 h$#h ha* $--en*e %rth pr*pe#t* $n In!$a0 /ent"re #ap$ta,$*t*

#an p,a+ *$%n$)$#ant r,e $n tapp$n% $t* ptent$a,$t+ t the )",,. Fr $n*tan#e0 /ent"re

#ap$ta,$*t* #an pr/$!e #ap$ta, an! epert$*e t r%an$<at$n* *e,,$n% ant$"e0

re-!e,e! =ee,,er+0 "$,!er* ) re*rt hte,*0 a+ an! hea,th #are -ar'et0 ret$re-ent

h-e* an! *-a,, h"*e*.

In /$e ) the a/e0 $t $,, e !e*$ra,e t e*ta,$*h a *eparate nat$na, /ent"re

#ap$ta, )"n! t h$#h the )$nan#$a, $n*t$t"t$n* an! an'* #an #ntr$"te. In *#pe

an! #ntent *"#h a nat$na, /ent"re #ap$ta, )"n! *h",! #/er@

8$9 a,, the a*pe#t* ) /ent"re #ap$ta, )$nan#$n% $n a,, the three *ta%e* ) #n#ept"a,0

!e/e,p-enta, an ep,$tat$n pha*e* $n the pr#e** ) #--er#$a,$<at$n ) the

te#hn,%$#a, $nn/at$n an!

8$$9 a* -a+ ) the r$*' *ta%e*!e/e,p-ent0 -an")a#t"r$n%0 -ar'et$n%0 -ana%e-ent

an! %rth a* p**$,e "n!er In!$an Cn!$t$n*. The )"n! *h",! ))er a

#-prehen*$/e pa#'a%e ) te#hn$#a,0 #--er#$a,0 -ana%er$a, an! )$nan#$a, a**$*tan#e

an! *er/$#e* t "$,!$n% entreprene"r* an! e a p*$t$n t ))er $nn/at$/e *,"t$n*

t the /ar$e! pr,e-* )a#e! + the- $n "*$ne** pr-t$n0 tran*)er an! $nn/at$n.

T th$* en!0 the prp*e! nat$na, /ent"re #ap$ta, )"n! *h",! ha/e at $t* #--an!

-",t$!$*#$p,$nar+ te#hn$#a, epert$*e. The -a=r thr"*t ) th$* )"n! *h",! e n the

pr-t$n ) /$a,e ne "*$ne** $n In!$a t ta'e a!/anta%e ) the n #-$n% h$%h

te#hn,%+ re/,"t$n an! *ett$n% "p ) h$%h %rth $n!"*tr$e* * a* t ta'e the In!$an

e#n-+ t #--an!$n% he$%ht*.

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Chapter – 3

Vent"re Cap$ta, In/e*t-ent Pr#e**

3.1

3.2

3.3

3.4

3.5

3.6

3.K

3.J

3.>

3.1

In/e*t-ent Pr#e!"re

In/e*t-ent $n VC + &an'*

An%,e

Crprate Vent"r$n%

Cn*rt$"- F$nan#$n%

Fa/"r$te* ) the In/e*tr*

Pr-t$n Strate%$e*

In#ent$/e*

In$t$at$/e*

Spe#$a, P"rp*e Veh$#,e

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Vent"re Cap$ta, In/e*t-ent Pr#e**

3.1 In/e*t-ent Pr#e!"re

In %enerat$n% a !ea, ),0 the /ent"re #ap$ta, $n/e*tr #reate* a p$pe,$ne ) :!ea,*; r

$n/e*t-ent pprt"n$t$e* that he ",! #n*$!er $n/e*t$n% $n. Th$* $* a#h$e/e!

pr$-ar$,+ thr"%h p,"%%$n% $nt an apprpr$ate netr'. The -*t pp",ar netr'

/$"*,+ $* the netr' ) /ent"re #ap$ta, )"n!*7$n/e*tr*. It $* a,* #--n )r

/ent"re #ap$ta,* t !e/e,p r'$n% re,at$n*h$p* $th RGD $n*t$t"t$n*0 a#a!e-$a0

et#0 h$#h #",! ptent$a,,+ ,ea! t "*$ne** pprt"n$t$e*. Un!er*tan!a,+ the

#-p*$t$n ) the netr' ",! !epen! n the $n/e*t-ent )#"* ) the /ent"re

#ap$ta, )"n!*7#-pan+. Th"* /ent"re #ap$ta, )"n!* )#"*$n% n ear,+ *ta%e te#hn,%+

a*e! !ea,* ",! !e/e,p a netr' ) RGD #enter* r'$n% $n th*e area*. The

netr' $* #r"#$a, t the *"##e** ) the /ent"re #ap$ta, $n/e*tr. It $* a,-*t $-perat$/e

)r the /ent"re #ap$ta, $n/e*tr t re#e$/e a ,ar%e n"-er ) $n/e*t-ent prp*a,*

)r- h$#h he #an *e,e#t a )e %! $n/e*t-ent #an!$!ate* )$na,,+.

&e)re -a'$n% an+ $n/e*t-ent0 the %a, a* /ent"re #ap$ta,$*t* $* t "n!er*tan!

/$rt"a,,+ e/er+ a*pe#t ) the tar%et #-pan+@ the eper$en#e an! #apa$,$t$e* ) the

-ana%e-ent tea-0 the "*$ne** p,an0 the nat"re ) $t* perat$n*0 $t* pr!"#t* an!7r

*er/$#e*0 the -eth!* + h$#h *a,e* are -a!e0 the -ar'et )r the pr!"#t* an!7r

*er/$#e*0 the #-pet$t$/e ,an!*#ape0 an! ther )a#tr* that -a+ a))e#t the "t#-e )

the $n/e*t-ent. h$,e !"e !$,$%en#e $n/e*t$%at$n* are /$ee! + -an+ a* -"n!ane

an! $rr$tat$n% ta*'*0 the pr#e** ena,e* /ent"re #ap$ta,$*t* t a!!re** area* ) #n#ern0

$* an $-prtant t, $n !eter-$n$n% a )a$r pre$n/e*t-ent /a,"at$n0 an! -a+ he,p t

a/$! *$%n$)$#ant an! ther$*e "nepe#te! ,$a$,$t+ ),,$n% the $n/e*t-ent.

The /ent"re #ap$ta,$*t* /$e the !"e !$,$%en#e pr#e** a* a -ean* ) $!ent$)+$n% an!

e#-$n% #-)rta,e $th the r$*'* t h$#h the$r #ap$ta, $,, e ep*e!. The !"e

!$,$%en#e pr#e** $n/,/e* an a**e**-ent ) th the -$#re#n-$# an!

-a#re#n-$# )a#tr* that #an a))e#t the earn$n%* %rth ) the tar%et #-pan+. The

!"e !$,$%en#e pr#e** a,* $n#,"!e* a re/$e ) the #rprate an! ,e%a, re#r!*0

$n#,"!$n% the !#"-entat$n *"pprt$n% an+ pre/$"* $**"an#e* ) the #-pan+*

*e#"r$t$e*.

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On,+ ne r t "*$ne** p,an* $n 1 re*",t $n *"##e**)", )$nan#$n%. An! ) e/er+

1 $n/e*t-ent* -a!e0 n,+ ne r t are *"##e**)",. &"t th$* $* en"%h t re#/er

$n/e*t-ent* -a!e + the /ent"re #ap$ta, 8VC9 $n a,, 1 *tart"p* $n a!!$t$n t an

a/era%e 45 ret"rnQ Se#"r$n% an $n/e*t-ent )r- an $n*t$t"t$na, /ent"re #ap$ta,

)"n! $* etre-e,+ !$))$#",t. It $* e*t$-ate! that n,+ )$/e "*$ne** p,an* $n 1 are

/$a,e $n/e*t-ent pprt"n$t$e* an! n,+ three $n 1 re*",t* $n *"##e**)", )$nan#$n%.

In )a#t0 the !!* #",! e a* , a* ne $n 1. (re than ha,) ) the prp*a,* t

/ent"re #ap$ta,$*t* are "*"a,,+ re=e#te! a)ter a 23 -$n"te *#ann$n%0 an! 25 per #ent

are !$*#ar!e! a)ter a ,en%th$er re/$e. The re-a$n$n% 15 per #ent are ,'e! at $n

-re !eta$,0 "t at ,ea*t 1 per #ent ) the*e are !$*-$**e! !"e t $rre#n#$,a,e ),a*

$n the -ana%e-ent tea- r the "*$ne** p,an.

A Vent"re Cap$ta,$*t ,'* at /ar$"* a*pe#t* e)re $n/e*t$n% $n an+ /ent"re. F$r*t0

+" nee! t r' "t a "*$ne** p,an. The "*$ne** p,an $* a !#"-ent that "t,$ne*

the -ana%e-ent tea-0 pr!"#t0 -ar'et$n% p,an0 #ap$ta, #*t* an! -ean* ) )$nan#$n%

an! pr)$ta$,$t+ *tate-ent*.

1. In$t$a, E/a,"at$n@ Th$* $n/,/e* the $n$t$a, pr#e** ) a**e**$n% the )ea*$$,$t+ )

the pr=e#t.

2. D"e !$,$%en#e@ In th$* *ta%e an $n!epth *t"!+ $* #n!"#te! t ana,+*e the

)ea*$$,$t+ ) the pr=e#t.

3. Dea, *tr"#t"r$n% an! ne%t$at$n@ Ba/$n% e*ta,$*he! the )ea*$$,$t+0 the

$n*tr"-ent* that %$/e the re"$re! ret"rn are *tr"#t"re!.

4.

5.

In/e*t-ent /a,"at$n@ In th$* *ta%e0 )$na, a-"nt )r !ea, $* !e#$!e!.

D#"-entat$n@ Th$* $* the pr#e** ) #reat$n% an! ee#"t$n% ,e%a, !#"-ent* t

prte#t the $ntere*t ) the /ent"re.

6. (n$tr$n% an! Va,"e a!!$t$n@ In th$* *ta%e0 the pr=e#t $* -n$tre! +

ee#"t$/e* )r- the /ent"re )"n! an! "n!e*$ra,e /ar$at$n* )r- the "*$ne** p,an

are !ea,t $th.

K. E$t P,$#$e*@ There are -a$n,+ 3 e$t p,$#$e* ),,e! + VCF;* $n %enera,.

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1. In$t$a, E/a,"at$n@

&e)re an+ $n !epth ana,+*$* $* !ne n a pr=e#t0 an $n$t$a, *#reen$n% $* #arr$e! "t t

*at$*)+ the /ent"re #ap$ta,$*t ) #erta$n a*pe#t* ) the pr=e#t. The*e $n#,"!e

C-pet$t$/e a*pe#t* ) the pr!"#t r *er/$#e

O"t,' ) the tar%et -ar'et an! the$r per#ept$n ) the ne pr!"#t

A$,$t$e* ) the -ana%e-ent tea-

A/a$,a$,$t+ ) ther *"r#e* ) )"n!$n%

Epe#te! ret"rn*

T$-e an! re*"r#e* re"$re! )r- the /ent"re #ap$ta, )$r-

Thr"%h th$* *#reen$n% the /ent"re )$r- "$,!* an $n$t$a, /er/$e a"t the

Te#hn$#a, *'$,,*0 eper$en#e0 "*$ne** *en*e0 te-pera-ent an! eth$#* ) the

pr-ter*

The *ta%e ) the te#hn,%+ e$n% "*e!0 the !r$/er* ) the te#hn,%+ an! the

!$re#t$n $n h$#h $t $* -/$n%

L#at$n an! *$<e ) -ar'et an! -ar'et !e/e,p-ent #*t*0 !r$/$n% )r#e* )

the -ar'et0 #-pet$tr* an! *hare0 !$*tr$"t$n #hanne,* an! ther -ar'et

re,ate! $**"e*

F$nan#$a, )a#t* ) the !ea,

C-pet$t$/e e!%e a/a$,a,e t the the #-pan+ an! )a#tr* a))e#t$n% $t

*$%n$)$#ant,+

A!/anta%e* )r- the !ea, )r the /ent"re #ap$ta,$*t

E$t pt$n* a/a$,a,e

2. D"e !$,$%en#e

D"e !$,$%en#e $* ter- "*e! that $n#,"!e* a,, the a#t$/$t$e* that are a**#$ate! $th

$n/e*t$%at$n% an $n/e*t-ent prp*a, t a**e** )ea*$$,$t+. It $n#,"!e* #arr+$n% "t $n

!epth re)eren#e #he#'* n the prp*a, re,ate! a*pe#t* *"#h a* -ana%e-ent tea-0

pr!"#t*0 te#hn,%+ an! -ar'et. A!!$t$na, *t"!$e* an! #,,e#t$n ) pr=e#ta*e!

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!ata are !ne !"r$n% th$* *ta%e. The $-prtant )eat"re t nte $* that /ent"re #ap$ta,

!"e !$,$%en#e )#"*e* n the "a,$tat$/e a*pe#t* ) an $n/e*t-ent pprt"n$t+.

Area* ) !"e !$,$%en#e ",! $n#,"!e

enera, a**e**-ent

"*$ne** p,an ana,+*$*

#ntra#t !eta$,*

#,,aratr*

#rprate =e#t$/e*

SOT ana,+*$*

T$-e *#a,e ) $-p,e-entat$n

Pep,e

(ana%er$a, a$,$t$e*0 pa*t per)r-an#e an! #re!$$,$t+ ) pr-ter*

F$nan#$a, a#'%r"n! an! )ee!a#' a"t pr-ter* )r- an'er* an! pre/$"*

,en!er*

Deta$,* ) &ar! ) D$re#tr* an! the$r r,e $n the a#t$/$t$e*

A/a$,a$,$t+ ) *'$,,e! ,a"r

Re#r"$t-ent pr#e**

Pr!"#t*7*er/$#e*0 te#hn,%+ an! pr#e**

In th$* #ate%r+ the t+pe ) "e*t$n* a*'e! $,, !epen! n the nat"re ) the $n!"*tr+

$nt h$#h the #-pan+ $* p,ann$n% t enter. S-e ) the area* %enera,,+ #n*$!ere!

are

Te#hn$#a, !eta$,*0 -an")a#t"r$n% pr#e** an! patent r$%ht*

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C-pet$n% te#hn,%$e* an! #-par$*n*

Ra -ater$a,* t e "*e!0 the$r a/a$,a$,$t+ an! -a=r *"pp,$er*0 re,$a$,$t+ )

the*e *"pp,$er*

(a#h$ner+ t e "*e! an! $t* a/a$,a$,$t+

Deta$,* ) /ar$"* te*t* #n!"#te! re%ar!$n% the ne pr!"#t

Pr!"#t ,$)e#+#,e

En/$rn-ent an! p,,"t$n re,ate! $**"e*

Se#n!ar+ !ata #,,e#t$n n the pr!"#t an! te#hn,%+0 $) * a/a$,a,e

(ar'et

The "e*t$n* a*'e! "n!er th$* hea! a,* /ar+ !epen!$n% n the t+pe ) pr!"#t.

S-e ) the -a$n "e*t$n* a*'e! are

-a$n #"*t-er*

)"t"re !e-an! )r the pr!"#t

#-pet$tr* $n the -ar'et )r the *a-e pr!"#t #ate%r+ an! the$r *trate%+

pr$#$n% *trate%+

*"pp,$er an! "+er ar%a$n$n% per

#hanne,* ) !$*tr$"t$n

-ar'et$n% p,an t e ),,e!

)"t"re *a,e* )re#a*t.

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(ar'et *"r/e+ #",! e #n!"#te! t %ather )"rther -re a##"rate an! re,e/ant !ata.

F$nan#e

F$nan#$a, )re#a*t* )r the net 35 +ear*

Ana,+*$* ) )$nan#$a, reprt* an! a,an#e *heet* ) )$r-* a,rea!+ pr-te! r r"n

+ the pr-ter* ) the ne /ent"re

C*t ) pr!"#t$n

a%e *tr"#t"re !eta$,*

A##"nt$n% pr#e** t e "*e!

F$nan#$a, reprt ) #r$t$#a, *"pp,$er*

Ret"rn* )r the net 35 +ear* an! there+ the ret"rn* t the /ent"re )"n!

&"!%et$n% -eth!* t e a!pte! an! "!%etar+ #ntr, *+*te-*

Eterna, )$nan#$a, a"!$t $) re"$re!

S-et$-e*0 #-pan$e* -a+ ha/e eper$en#e! perat$na, pr,e-* !"r$n% the$r ear,+

*ta%e* ) %rth r !"e t a! -ana%e-ent. The*e #",! re*",t $n ,**e* r #a*h ),

!ra$n* n the #-pan+. S-et$-e* )$nan#$n% )r- /ent"re #ap$ta, -a+ en! "p e$n%

"*e! t )$nan#e the*e ,**e*. The+ a/$! th$* thr"%h !"e !$,$%en#e an! *#r"t$n+ ) the

"*$ne** p,an.

3. Str"#t"r$n% a !ea,

Str"#t"r$n% re)er* t p"tt$n% t%ether the )$nan#$a, a*pe#t* ) the !ea, an! ne%t$at$n%

$th the entreprene"r* t a##ept a /ent"re #ap$ta,;* prp*a, an! )$na,,+ #,*$n% the

!ea,. A,* the *tr"#t"re *h",! ta'e $nt #n*$!erat$n the /ar$"* #--er#$a, $**"e*

8$e hat the entreprene"r ant* an! hat the /ent"re #ap$ta, ",! re"$re t prte#t

the $n/e*t-ent9.

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The $n*tr"-ent* t e "*e! $n *tr"#t"r$n% !ea,* are -an+ an! /ar$e!. The =e#t$/e $n

*e,e#t$n% the $n*tr"-ent ",! e t -a$-$<e 8r pt$-$<e9 /ent"re #ap$ta,;*

ret"rn*7prte#t$n an! +et *at$*)+ the entreprene"r;* re"$re-ent*. The $n*tr"-ent*

#",! e a* ),,*@

In*tr"-entE"$t+ *hare*

I**"e*ne r /en!r *hare*

par /a,"e

part$a,,+pa$! *hare*re!ee-a,e 8#n!$t$n* "n!er C-pan+ A#t9

part$#$pat$n%

par /a,"e

n-$na, *hare*#,ean /* *e#"re!

Intere*t ear$n% /* nn $ntere*t ear$n%

#n/ert$,e /* ne $th )eat"re* 8arrant*9

1*t Char%e0 2n! Char%e0

,an /* ,an *t#'

-at"r$t+eer#$*e pr$#e0 ep$r+ per$!eer#$*e pr$#e0 ep$r+ per$!0 #a,,0 p"t

Pre)eren#e *hare*

Lan

arrant*Opt$n*

In In!$a0 *tra$%ht e"$t+ an! #n/ert$,e* are pp",ar an! #--n,+ "*e!. Na!a+*0

arrant* are $**"e! a* a t, t r$n% !n pr$#$n%.

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A /ar$at$n that a* )$r*t "*e! + PACT an! TDICI a* ?r+a,t+ n *a,e*?. Un!er

th$*0 the #-pan+ a* %$/en a #n!$t$na, ,an. I) the pr=e#t a* *"##e**)",0 the

#-pan+ ha! t pa+ a per#enta%e ) *a,e* a* r+a,t+ an! $) $t )a$,e! then the a-"nt

a* r$tten )).

In *tr"#t"r$n% a !ea,0 $t $* $-prtant t ,$*ten t hat the entreprene"r ant*0 "t the

/ent"re #ap$ta, #-e* "p $th h$* n *,"t$n. E/en )r the prp*e! $n/e*t-ent

a-"nt0 the /ent"re #ap$ta, !e#$!e* hether r nt the a-"nt re"e*te!0 $*

apprpr$ate an! #n*$*tent $th the r$*' ,e/e, ) the $n/e*t-ent. The r$*'* *h",! e

ana,+<e!0 ta'$n% $nt #n*$!erat$n the *ta%e at h$#h the #-pan+ $* $n an! ther

)a#tr* re,at$n% t the pr=e#t. 8e% e$t pr,e-*0 et#9.

A t+p$#a, prp*a, -a+ $n#,"!e a #-$nat$n ) *e/era, !$))erent $n*tr"-ent* ,$*te!

a/e. Un!er nr-a, #$r#"-*tan#e*0 entreprene"r* ",! pre)er /ent"re #ap$ta,* t

$n/e*t $n e"$t+ a* th$* ",! e the ,e*t r$*' pt$n )r the #-pan+. Be/er

)r- the /ent"re #ap$ta,* p$nt ) /$e0 the *a)e*t $n*tr"-ent0 "t $th the ,ea*t ret"rn0

",! e a *e#"re! ,an. Ben#e0 ",t$-ate,+0 hat +" en! "p $th ",! e *-e

$n*tr"-ent* $n eteen h$#h are *,! t the entreprene"r. A n"-er ) )a#tr* a))e#t

the #h$#e ) $n*tr"-ent*0 *"#h a*

Cate%r$e*C-pan+ *pe#$)$#

Pr-ter *pe#$)$#

Fa#tr* $n),"en#$n% the #h$#e ) In*tr"-entR$*'0 #"rrent *ta%e ) perat$n0 0 epe#te! pr)$ta$,$t+0 )"t"re #a*h

),*0 $n/e*t-ent ,$"$!$t+ pt$n*C"rrent )$nan#$a, p*$t$n ) pr-ter*0 per)r-an#e tra#'re#r!0

$,,$n%ne** ) pr-ter* t !$,"te *ta'ePr!"#t7Pr=e#t *pe#$)$# F"t"re -ar'et ptent$a,0 pr!"#t ,$)e#+#,e0 %e*tat$n per$!(a#r en/$rn-entTa pt$n* n !$))erent $n*tr"-ent*0 ,e%a, )ra-er'0 p,$#$e*

a!pte! + #-pet$t$n

4. In/e*t-ent /a,"at$n

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The $n/e*t-ent /a,"at$n pr#e** $* an eer#$*e a$-e! at arr$/$n% at :an a##epta,e

pr$#e; )r the !ea,. T+p$#a,,+ $n #"ntr$e* here )ree pr$#$n% re%$-e* e$*t0 the

/a,"at$n pr#e** %e* thr"%h the ),,$n% *tep*@

1. E/a,"ate )"t"re re/en"e an! pr)$ta$,$t+

2. Fre#a*t ,$'e,+ )"t"re /a,"e ) the )$r- a*e! n eper$en#e! -ar'et #ap$ta,$<at$n

r epe#te! a#"$*$t$n pr#ee!* !epen!$n% "pn the ant$#$pate! e$t )r- the

$n/e*t-ent.

3. Tar%et ner*h$p p*$t$n* $n the $n/e*tee )$r- * a* t a#h$e/e !e*$re!

appre#$at$n n the prp*e! $n/e*t-ent. The appre#$at$n !e*$re! *h",! +$e,! a

h"r!,e rate ) ret"rn n a D$*#"nte! Ca*h F, a*$*.

In #erta$nt+ the /a,"at$n ) the )$r- $* !r$/en + a n"-er ) )a#tr*. The -re

*$%n$)$#ant a-n% the*e are@

O/era,, e#n-$# #n!$t$n*@ A "+ant e#n-+ pr!"#e* an pt$-$*t$# ,n% ter-

"t,' )r ne pr!"#t*7*er/$#e* an! there)re re*",t* $n -re ,$era, pre-ne+

/a,"at$n*.

De-an! an! *"pp,+ ) #ap$ta,@ hen there $* a *"rp,"* ) /ent"re #ap$ta, ) /ent"re

#ap$ta, #ha*$n% a re,at$/e,+ ,$-$te! n"-er ) /ent"re #ap$ta, !ea,*0 /a,"at$n* % "p.

Th$* #an re*",t $n "nhea,th+ ,e/e,* ) , ret"rn* )r /ent"re #ap$ta, $n/e*tr*.

Spe#$)$# rate* ) !ea,*@ *"#h a* the )"n!er;*7-ana%e-ent tea-;* tra#' re#r!0

$nn/at$n7 "n$"e *e,,$n% prp*$t$n* 8USP*90 the pr!"#t7*er/$#e *$<e ) the

ptent$a, -ar'et0 et# a))e#t* /a,"at$n* $n an /$"* -anner.

The !e%ree ) pp",ar$t+ ) the $n!"*tr+7te#hn,%+ $n "e*t$n a,* $n),"en#e* the

pre-ne+. C-p"ter A$!e! S'$,,* S)tare En%$neer$n% 8CASE9 t,* an! Art$)$#$a,

Inte,,$%en#e ere ne t$-e !ar,$n%* ) the /ent"re #ap$ta, #--"n$t+ that ha/e n

%$/en p,a#e t $te#h an! reta$,$n%.

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The *tan!$n% ) the $n!$/$!"a, /ent"re #ap$ta, e,, e*ta,$*he! /ent"re #ap$ta,* h

are *"%ht a)ter + entreprene"r* )r a n"-er ) rea*n* #",! %et aa+ $th t$%hter

/a,"at$n* than the$r ,e** 'nn #"nterpart*.

In/e*tr;* #n*$!erat$n* #",! /ar+ *$%n$)$#ant,+. A *t"!+ + an A-er$#an /ent"re

#ap$ta,0 Vent"re One0 re/ea,e! the ),,$n% tren!. Lar%e #rprat$n* h $n/e*t )r

*trate%$# a!/anta%e* *"#h a* a##e** t te#hn,%$e*0 pr!"#t* r -ar'et* pa+ t$#e a*

-"#h a* a pr)e**$na, /ent"re #ap$ta, $n/e*tr0 )r a %$/en ner*h$p p*$t$n $n a

#-pan+ "t n,+ ha,) a* -"#h a* $n/e*tr* $n a p",$# ))er$n%.

Va,"at$n ))ere! n #-para,e !ea,* ar"n! the t$-e ) $n/e*t$n% $n the !ea,.

5. D#"-entat$n

It $* the pr#e** ) #reat$n% an! ee#"t$n% ,e%a, a%ree-ent* that are nee!e! + the

/ent"re )"n! )r %"ar!$n% ) $n/e*t-ent.

&a*e! n the t+pe ) $n*tr"-ent "*e! the !$))erent t+pe* ) a%ree-ent* are

E"$t+ A%ree-ent

In#-e Nte A%ree-ent

Cn!$t$na, Lan A%ree-ent

Opt$na,,+ Cn/ert$,e Deent"re A%ree-ent et#.

There are a,* !$))erent a%ree-ent* a*e! n hether the a%ree-ent $* $th the

pr-ter* r the #-pan+. The !$))erent ,e%a, !#"-ent* that are t e #reate! an!

ee#"te! + the /ent"re )$r- are

Shareh,!er* a%ree-ent Th$* a%ree-ent $* -a!e eteen the /ent"re

#ap$ta,$*t0 the #-pan+ an! the pr-ter*. The a%ree-ent ta'e* $nt a##"nt

Cap$ta, *tr"#t"re.

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Tran*)er ) *hare*@ Th$* ,a+* the #n!$t$n )r tran*)er ) e"$t+ eteen the

e"$t+ h,!er*. The pr-ter* #annt *e,, the$r *hare* $th"t the pr$r per-$**$n )

the /ent"re #ap$ta,$*t.

App$nt-ent ) &ar! ) D$re#tr*

Pr/$*$n* re%ar!$n% *"*pen*$n7#an#e,,at$n ) the $n/e*t-ent. The $**"e* "n!er

h$#h *"#h #an#e,,at$n r *"*pen*$n ta'e* p,a#e are !e)a",t ) #/enant* an!

#n!$t$n*0 *"pp,+ ) -$*,ea!$n% $n)r-at$n0 $na$,$t+ t pa+ !et*0 !$*p*a, an!

re-/a, ) a**et*0 re)"*a, ) !$*"r*a, + ther )$nan#$a, $n*t$t"t$n*0 pr#ee!$n%*

a%a$n*t the #-pan+0 an! ,$"$!at$n r !$**,"t$n ) the #-pan+.

E"$t+ *"*#r$pt$n a%ree-ent Th$* $* the a%ree-ent eteen the /ent"re

#ap$ta,$*t an! the #-pan+ n

N"-er ) *hare* t e *"*#r$e! + the /ent"re #ap$ta,$*t

P"rp*e ) the *"*#r$pt$n

Pre!$*"r*e-ent #n!$t$n* that nee! t e -et

S"-$**$n ) reprt* t the /ent"re #ap$ta,$*t

C"rren#+ ) the a%ree-ent

Dee! ) Un!erta'$n% The a%ree-ent $* *$%ne! eteen the pr-ter* an! the

/ent"re #ap$ta,$*t here$n the pr-ter a%ree* nt t $th!ra0 tran*)er0 a**$%n0

p,e!%e0 h+pthe#ate et# the$r $n/e*t-ent $th"t pr$r per-$**$n ) the /ent"re

#ap$ta,$*t. The pr-ter* *ha,, nt !$/er*$)+0 epan! r #han%e pr!"#t -$ $th"t

per-$**$n.

In#-e Nte A%ree-ent It #nta$n* !eta$,* ) repa+-ent0 $ntere*t0 r+a,t+0

#n/er*$n0 !$/$!en! et#.

Cn!$t$na, Lan A%ree-ent It #nta$n* !eta$,* n the ter-* an! #n!$t$n*

) the ,an0 *e#"r$t+ ) ,an0 app$nt-ent ) n-$nee !$re#tr* et#.

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Dee! ) B+pthe#at$n0 Shrt)a,, Un!erta'$n%0 M$nt an! Se/era, Per*na,

"arantee Per ) Attrne+ et#.

hene/er there $* a -!$)$#at$n $n an+ ) the a%ree-ent*0 then a S"pp,e-entar+

A%ree-ent $* #reate! )r the *a-e.

6. (n$tr$n% an! ),, "p

The r,e ) the /ent"re #ap$ta,$*t !e* nt *tp a)ter the $n/e*t-ent $* -a!e $n the

pr=e#t. The *'$,,* ) the /ent"re #ap$ta,$*t are -*t re"$re! n#e the $n/e*t-ent $*

-a!e. The /ent"re #ap$ta,$*t %$/e* n%$n% a!/$#e t the pr-ter* an! -n$tr* the

pr=e#t #nt$n""*,+.

It $* t e "n!er*t! that the pr/$!er* ) /ent"re #ap$ta, are nt ="*t )$nan#$er* r

*"*#r$er* t the e"$t+ ) the pr=e#t the+ )"n!. The+ )"n#t$n a* a !"a, #apa#$t+0 a*

a )$nan#$a, partner an! *trate%$# a!/$*r.

Vent"re #ap$ta,$*t* -n$tr an! e/a,"ate pr=e#t* re%",ar,+. The+ are a#t$/e,+

$n/,/e! $n the -ana%e-ent ) the ) the $n/e*tr "n$t an! pr/$!e epert "*$ne**

#"n*e,0 t en*"re $t* *"r/$/a, an! %rth. De/$at$n* r #a"*e* ) rr+ -a+ a,ert

the- t ptent$a, pr,e-* an! the+ #an *"%%e*t re-e!$a, a#t$n* r -ea*"re* t

a/$! the*e pr,e-*. A* pr)e**$na, $n th$* "n$"e -eth! ) )$nan#$n%0 the+ -a+

ha/e $nn/at$/e *,"t$n* t -a$-$<e the #han#e* ) *"##e** ) the pr=e#t. A)ter a,,0

the ",t$-ate a$- ) the /ent"re #ap$ta,$*t $* the *a-e a* that ) the pr-ter* – the

,n% ter- pr)$ta$,$t+ an! /$a$,$t+ ) the $n/e*tr #-pan+.

The /ar$"* *t+,e* are@

Ban!*n St+,e *"%%e*t* *"pprt$/e an! !$re#t $n/,/e-ent ) the /ent"re #ap$ta,$*t $n

the a**$*te! )$r- thr"%h &ar! repre*entat$n an! re%",ar,+ a!/$*$n% the entreprene"r

n -atter* ) te#hn,%+0 -ar'et$n% an! %enera, -ana%e-ent. In!$an /ent"re

#ap$ta,$*t* ! nt %enera,,+ $n/,/e the-*e,/e* n a han!*n a*$* $t the+ ! ha/e

ar! repre*entat$n*.

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Ban!*)) St+,e $n/,/e* ##a*$na, a**e**-ent ) the a**$*te! )$r-* -ana%e-ent an!

$t* per)r-an#e $th n !$re#t -ana%e-ent a**$*tan#e e$n% pr/$!e!. In!$an /ent"re

)"n!* %enera,,+ ),, th$* appra#h.

Inter-e!$ate St+,e /ent"re #ap$ta, )"n!* ae ent$t,e! t ta$n n a re%",ar a*$*

$n)r-at$n a"t the a**$*te! pr=e#t*.

Vent"re #ap$ta, tar%et #-pan$e* $th *"per$r pr!"#t* r *er/$#e* )#"**e! at

)a*t%r$n% r "ntappe! -ar'et*. Vent"re #ap$ta,$*t* -"*t e #n)$!ent that

the )$r- ha* the "a,$t+ an! !epth $n the -ana%e-ent tea- t a#h$e/e $t*

a*p$rat$n*. The+ $,, ant t en*"re that the $n/e*tee #-pan+ ha* the

$,,$n%ne** t a!pt -!ern #rprate %/ernan#e *tan!ar!*.

F$r-* *trn% $n )a#tr* re,at$n% t patent*0 -ana%e-ent0 $!ea0 an! ptent$a, are -re

,$'e,+ t ta$n VC )$nan#$n% an! $,,$n% partner* t *"pprt #--er#$a,$*at$n

a#t$/$t$e*.

K. EHIT *trate%$e* a!pte! + VCF;*@

A /ent"re #ap$ta, )$r- enter* a re,at$n*h$p $th a #-pan+ $th the epe#tat$n that a

*$%n$)$#ant ret"rn ) $n/e*t-ent $,, re*",t hen the )$r- e$t* the $n/e*t-ent. The

)$r- p,an* )r that e$t t ta'e p,a#e $th$n a #erta$n a-"nt ) t$-e0 "*"a,,+ )r-

three t *$ +ear*0 !epen!$n% n the !e/e,p-ent *ta%e ) the #-pan+ $n h$#h $t $*

$n/e*t$n%.

Depen!$n% n the $n/e*t-ent )#"* an! *trate%+ ) the /ent"re )$r-0 $t $,, *ee' t

e$t the $n/e*t-ent $n the prt),$ #-pan+. h$,e the $n$t$a, p",$# ))er$n% -a+ e

the -*t %,a-r"* an! hera,!e! t+pe ) e$t )r the /ent"re #ap$ta,$*t an! ner* )

the #-pan+0 -*t *"##e**)", e$t* ) /ent"re $n/e*t-ent* ##"r thr"%h a -er%er r

a#"$*$t$n ) the #-pan+ + e$ther the r$%$na, )"n!er* r anther #-pan+.

A%a$n0 the epert$*e ) the /ent"re )$r- $n *"##e**)",,+ e$t$n% $t* $n/e*t-ent $,,

!$#tate the *"##e** ) the e$t )r the-*e,/e* an! the ner ) the #-pan+.

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There are *e/era, #--n e$t *trate%$e*@

IPO

The $n$t$a, p",$# ))er$n% $* the -*t %,a-r"* an! /$*$,e t+pe ) e$t )r a /ent"re

$n/e*t-ent. In re#ent +ear* te#hn,%+ IPO* ha/e een $n the ,$-e,$%ht !"r$n% the IPO

- ) the ,a*t *$ +ear*.

At p",$# ))er$n%0 the /ent"re )$r- $* #n*$!ere! an $n*$!er an! $,, re#e$/e *t#' $n

the #-pan+0 "t the )$r- $* re%",ate! an! re*tr$#te! $n h that *t#' #an e *,! r

,$"$!ate! )r *e/era, +ear*. On#e th$* *t#' $* )ree,+ tra!a,e0 "*"a,,+ a)ter a"t t

+ear*0 the /ent"re )"n! $,, !$*tr$"te th$* *t#' r #a*h t $t* ,$-$te! partner $n/e*tr

h -a+ then -ana%e the p",$# *t#' a* a re%",ar *t#' h,!$n% r -a+ ,$"$!ate $t

"pn re#e$pt. O/er the ,a*t tent+)$/e +ear*0 a,-*t 3 #-pan$e* )$nan#e! +

/ent"re )"n!* ha/e %ne p",$#.

(er%er* an! A#"$*$t$n*

(er%er* an! a#"$*$t$n* repre*ent the -*t #--n t+pe ) *"##e**)", e$t )r

/ent"re $n/e*t-ent*. In an era ) ,ar%e #-pan$e* !-$nat$n% $n!"*tr+ ,an!*#ape*0

a#"$*$t$n $* )ten the tar%ete! an! -*t #--n e$t *trate%+. S-a,,er #-pan$e*

ha/e0 $n e**en#e0 e#-e the re*ear#h an! !e/e,p-ent ar- ) ,ar%er #-pan$e* h

)ten ,' t "+ the- n#e the$r $nn/at$n* #an #ntr$"te t the$r n pr)$ta$,$t+.

In the #a*e ) a -er%er r a#"$*$t$n0 the /ent"re )$r- $,, re#e$/e *t#' r #a*h

)r- the a#"$r$n% #-pan+ an! the /ent"re $n/e*tr $,, !$*tr$"te the pr#ee!* )r-

the *a,e t $t* ,$-$te! partner*.

IPO

(er%er* an! A#"$*$t$n*

Re!e-pt$n

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Re!e-pt$n

Anther a,ternat$/e $* that the #-pan+ -a+ e re"$re! t "+ a#' a /ent"re #ap$ta,

)$r-* *t#' at #*t p,"* a #erta$n pre-$"-. O)ten a /ent"re #ap$ta, )$r- $,, p"t a

re!e-pt$n #,a"*e 8*-et$-e* re)erre! t a* a ?"+a#' #,a"*e?9 $n the $n/e*t-ent

ter-* h$#h a,,* the- t e$t the$r $n/e*t-ent $n +"r #-pan+ $n the e/ent that an

IPO r a#"$*$t$n !e* nt happen $th$n a !e*$%nate! t$-e per$!.

2.2 In/e*t-ent $n Vent"re Cap$ta, + &an'*

T en#"ra%e the ), ) )$nan#e )r /ent"re #ap$ta, #--er#$a, an'* are a,,e!

t $n/e*t $n /ent"re #ap$ta, $th"t an+ ,$-$t *$n#e Apr$, 1>>>. The -netar+ an!

#re!$t p,$#+ )r the +ear 1>>>2 pr/$!e* that the /era,, #e$,$n% ) $n/e*t-ent +

an'* $n r!$nar+ *hare*0 #n/ert$,e !eent"re* ) #rprate an! "n$t* ) -"t"a,

)"n!* h$#h $* #"rrent,+ at 5 per #ent ) the$r $n#re-enta, !ep*$t* $,, *tan!

a"t-at$#a,,+ enhan#e! t the etent ) an'*; $n/e*t-ent* $n /ent"re #ap$ta,.

F"rther0 the (netar+ an! Cre!$t P,$#+ 81>>>29 pr/$!e* )r the $n#,"*$n )

$n/e*t-ent $n /ent"re #ap$ta, "n!er pr$r$t+ *e#tr ,en!$n%.

2.3 An%e,*

An%e,* are pep,e $th ,e** -ne+ r$entat$n0 "t h p,a+ an a#t$/e r,e $n -a'$n%

an ear,+*ta%e #-pan+ r'. The+ are pep,e $th en"%h han!*n eper$en#e an!

are epert* $n the$r )$e,!*. The+ "n!er*tan! the )$e,! )r- an perat$na, per*pe#t$/e.

An entreprene"r nee!* th$* '$n! ) epert$*e. Be a,* nee!* -ne+ t -a'e th$n%*

happen. An%e,* r$n% th t the ta,e ) an entreprene"r.

An%e,* are $-prtant ,$n'* $n the ent$re pr#e** ) /ent"re #ap$ta, )"n!$n%. Th$* $*

e#a"*e the+ *"pprt a ),e!%$n% enterpr$*e at a /er+ ear,+ *ta%e – *-et$-e e/en

e)re #--er#$a,$<at$n ) the pr!"#t r *er/$#e ))er$n%. T+p$#a,,+0 an an%e, $* an

eper$en#e! $n!"*tr+re! $n!$/$!"a, $th h$%h net rth.

An%e,* pr/$!e )"n!$n% + ?)$r*t r"n!? )$nan#$n% )r r$*'+ $n/e*t-ent* – r$*'+

e#a"*e the+ are a +"n% 7*tart"p #-pan+ r e#a"*e the$r )$nan#$a, tra#' re#r! $*

"n*ta,e.

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Th$* /ent"re #ap$ta, )$nan#$n% $* t+p$#a,,+ "*e! t prepare the #-pan+ )r ?*e#n!

r"n!? )$nan#$n% $n the )r- ) an $n$t$a, p",$# ))er$n% 8IPO9. Ea-p,e – A

#-pan+ -a+ nee! ?)$r*t r"n!? )$nan#$n% t !e/e,p a ne pr!"#t ,$ne0 8/$< a ne

!r"% h$#h ",! re"$re *$%n$)$#ant re*ear#h G !e/e,p-ent )"n!$n%9 r -a'e a

*trate%$# a#"$*$t$n t a#h$e/e #erta$n ,e/e,* ) %rth G *ta$,$t+.

It $* $-prtant t #h*e the r$%ht An%e, e#a"*e the+ $,, *$t n +"r &ar! )

D$re#tr*0 )ten )r the !"rat$n ) the$r $n/e*t-ent an! $,, a**$*t $n %ett$n% ?*e#n!

r"n!? )$nan#$n%. hen #h*$n% an An%e,0 $t $* $-perat$/e t #n*$!er the$r

eper$en#e $n a re,e/ant $n!"*tr+0 rep"tat$n0 "a,$)$#at$n* an! tra#' re#r!.

Crprate Vent"r$n%

E/en th"%h #rprate /ent"r$n% $* an attra#t$/e a,ternat$/e0 -*t #-pan$e* )$n! $t

!$))$#",t t e*ta,$*h *+*te-*0 #apa$,$t$e* an! #",t"re* that -a'e %! /ent"re #ap$ta,

)$r-*. Crprate -ana%er* *e,!- ha/e the *a-e )ree!- t )"n! $nn/at$/e pr=e#t*

r t #an#e, the- -$!*trea-. The$r *'$,,* are hne! )r -ana%$n% -at"re "*$ne**e*

an! nt n"rt"r$n% *tart "p #-pan$e*. I) a )$r- $* t app,+ the /ent"re #ap$ta, -!e,0 $t

-"*t "n!er*tan! the #hara#ter$*t$#* ) the -!e, an! ta$,r $t* /ent"re #ap$ta, pr%ra-

t $t* n #$r#"-*tan#e* $th"t ,*$n% *$%ht ) the*e e**ent$a,*.

S"##e** ) /ent"re #ap$ta, )$r-* re*t n the ),,$n% #hara#ter$*t$#*@

F#"* n *pe#$)$# $n!"*tr+ n$#he*

A,th"%h #rprate -ana%er* ha/e a #,ear )#"* $n the$r "*$ne**0 the+ r"n $nt

a-$%"$t+ $th /ent"re pr%ra-*. The$r $%%e*t #ha,,en%e $* t e*ta,$*h #,ear0

pr$r$t$<e! =e#t$/e*. S$-p,+ -a'$n% a %! )$nan#$a, ret"rn $* nt *"))$#$ent.

(ana%e prt),$* r"th,e**,+ aan!n ,*er*0 herea* aan!n$n% /ent"re* ha*

ne/er een ea*+ )r ,ar%e #rprat$n*0 h*e pr=e#t* are "n!erp$nne! + per*na,

re,at$n*h$p*0 p,$t$#a, #n#ern*.

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Vent"re #ap$ta, )$r-* *hare *e/era, attr$"te* $th *tart "p the+ )"n!. The+ ten! t e

*-a,,0 ),e$,e an! "$#' t -a'e !e#$*$n*. The+ ha/e ),at h$erar#h$e* an! re,+

hea/$,+ n e"$t+ an! $n#ent$/e pa+.

App,e C-p"ter* e*ta,$*he! a /ent"re )"n! $n 1>J6 $th the !"a, =e#t$/e* )

earn$n% h$%h )$nan#$a, ret"rn an! *"pprt$n% !e/e,p-ent ) (a#$nt*h *)tare.

The+ *tr"#t"re! #-pen*at$n -e#han$*-*0 !e#$*$n #r$ter$a an! perat$n% pr#e!"re*

n th*e ) tp /ent"re #ap$ta, )$r-*. h$,e the+ #n*$!ere! (a#$nt*h a* an $n$t$a,

*#reen$n% )a#tr0 $t* )"n!$n% !e#$*$n* ere a$-e! at pt$-$<$n% )$nan#$a, ret"rn*. The

re*",t a* an IRR ) > per #ent "t ,$tt,e *"##e** $n $-pr/$n% the p*$t$n )

(a#$nt*h.

Ne /ent"re* #an e per)", *"r#e ) re/en"e*0 !$/er*$)$#at$n an! ),e$$,$t+ $n

rap$!,+ #han%$n% en/$rn-ent*. The #-pan+ *h",! #reate an en/$rn-ent that

en#"ra%e* /ent"r$n%. An $nn/at$/e #",t"re #annt e tran*p,ante! "t -"*t e/,/e

$th$n the #-pan+. Vent"re $n/e*t$n% re"$re* !$))erent -$n!*et )r- t+p$#a,

#rprate $n/e*tr*.

B re,e/ant $* #rprate /ent"r$n% $n the In!$an *#enar$

The )$r-*0 h$#h ,a"n#he! the *"##e**)", #rprate /ent"re* ha! #reate! ne

pr!"#t* $n the -ar'et perat$n% at the h$%her en! ) the /a,"e #ha$n an! ha! atta$ne!

a #erta$n *$<e $n the -ar'et. (*t In!$an #-pan$e* are +et t -/e "p the /a,"e

#ha$n an! #n*,$!ate the$r p*$t$n a* p,a+er* $n the %,a, -ar'et. Crprate

/ent"r$n% -!e,* ",! pra,+ ene)$t In!$an #-pan$e* h are ,ar%e p,a+er* $n

the In!$an -ar'et $n anther )$/e t 1 +ear* + ena,$n% the- t !$/er*$)+ an! at the

*a-e t$-e he,p *tart "p #-pan$e*. (",t$nat$na,* ,e! + Inte, are the e*t ea-p,e*

) #rprate /ent"r$n% $n an In!$an #ntet.

Cn*rt$"- F$nan#$n%

here the pr=e#t #*t $* h$%h 8R* 1 -$,,$n r -re9 an! a *$n%,e )"n! $* nt $n a

p*$t$n t pr/$!e the ent$re /ent"re #ap$ta, re"$re! then /ent"re )"n!* -a+ a#t $n

#n*rt$"- $th ther )"n!* an! ta'e a ,ea! $n -a'$n% $n/e*t-ent !e#$*$n*. Th$*

he,p* $n !$/er*$)+$n% r$*' "t he/er $t ha* nt een /er+ *"##e**)", $n the In!$a

#a*e.

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In the r%an$<e! *e#tr0 there are a n"-er ) p,a+er* perat$n% $n In!$a h*e

a#t$/$t+ $* nt -n$tre! + the a**#$at$n. A!! t%ether the $n)"*$n ) )"n!* +

/er*ea* )"n!*0 pr$/ate $n!$/$!"a,*0 :an%e,; $n/e*tr* an! a h*t ) )$nan#$a,

$nter-e!$ar$e* an! the tta, p, ) In!$an Vent"re Cap$ta, t!a+0 *tan!* at R*5n0

a##r!$n% t $n!"*tr+ e*t$-ate*Q

The pr$-ar+ -ar'et* $n the #"ntr+ ha/e re-a$ne! !epre**e! )r "$te *-e t$-e

n. In the ,a*t t +ear*0 there ha/e een ="*t K4 $n$t$a, p",$# ))er$n%* 8IPO*9 at the

*t#' e#han%e*0 ,ea!$n% t an $n/e*t-ent ) ="*t R*14.24n. That;* ,e** than 12 )

the -ne+ ra$*e! $n the pre/$"* t +ear*. That -a'e* the #n*er/at$/e e*t$-ate )

R*36n $n/e*te! $n #-pan$e* thr"%h the Vent"re Cap$ta,7Pr$/ate E"$t+ r"te a,,

the -re *$%n$)$#ant.

S-e ) the #-pan$e* that ha/e re#e$/e! )"n!$n% thr"%h th$* r"te $n#,"!e@

(a*te'0 ne ) the ,!e*t *)tare h"*e* $n In!$a

e-etr$# S)tare0 a pr!"#er ) *)tare *,"t$n* )r the CAD7CA( -ar'et

R"'*"n S)tare0 P"nea*e! *)tare #n*",tan#+

B$n!$trn0 -a'er* ) e-e!!e! *)tare

PerTe, &#a0 !$*tr$"tr ) te,e#-p"t$n% pr!"#t* )r the In!$an -ar'et

Re!$)) n the Net0 In!$an e*$te )eat"r$n% e,e#trn$# *hpp$n%0 ne*0 #hat0 et#

2.6 Fa/"r$te* ) the In/e*tr*

Th"%h the In)Te#h #-pan$e* are a-n% the -*t )a/re! + /ent"re #ap$ta,$*t*0

#-pan$e* )r- ther *e#tr* a,* )eat"re e"a,,+ $n the$r prt),$*. The hea,th#are

*e#tr $th phar-a#e"t$#a,0 -e!$#a, app,$an#e* an! $te#hn,%+ $n!"*tr$e* a,* %et

-"#h attent$n $n In!$a. $th the !ere%",at$n ) the te,e#- *e#tr0

te,e#--"n$#at$n* $n!"*tr$e* ,$'e $p Te,e#- an! -e!$a #-pan$e* ,$'e UTV an!

Te,e/$*$n E$%hteen ha/e =$ne! the ,$*t ) )a/r$te*. S )ar0 the*e tren!* ha/e een $n

'eep$n% $th the %,a, #"r*e.

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Be/er0 re#ent !e/e,p-ent* ha/e *hn that In!$a $* -at"r$n% $nt a -re

!e/e,pe! -ar'etp,a#e "n#n/ent$na, $n/e*t-ent* $n a %a-"t ) $n!"*tr$e* ha/e

*pr"n% "p a,, /er the #"ntr+.

Th$* $n#,"!e*@

In!"* Lea%"e C,th$n%0 a #-pan+ *et "p + e$%ht )r-er e-p,+ee* ) rea!+-a!e

%ar-ent* %$ant (a!"ra0 h *et "p *hp n the$r n t !e/e,p a "n$"e /$rt"a,

r%an$<at$n that $,, ,$#en*e %,a, appare, ran!* an! *e,, the-0 $th"t n$n% an+

-an")a#t"r$n% "n$t*. The+ !rea- t "$,! a netr' ) 205 "t,et* $n three +ear*

an! t e a-n% the tp three rea!+-a!e ran!*.

Shpper* Stp0 ("-a$;* pre-$er !epart-enta, *tre $nn/ate* $th reta$,$n% an!

!e#$!e* t % %,a,. Th$* !ea, $* )a#$n% *-e pr,e-* $n %ett$n% re%",atr+

appr/a,*.

A$r)re$%ht0 the #"r$er#-pan+ h$#h ha* een %r$n% at a rap$! pa#e an! nee!e!

)"n!* )r hea/+ $n/e*t-ent* $n te#hn,%+0 netr'$n% an! a$r#ra)t*.

P$<<a Crner0 a Chenna$ a*e! p$<<a !e,$/er+ #-pan+ that $* *et t ta'e n %,a,

%$ant* ,$'e P$<<a B"t an! D-$n* P$<<a $th $t* $nn/at$/e *er/$#$n% *trate%+.

Car !e*$%ner D$,$p Chhar$a0 h p,an* t t"rn h$* *t"!$0 here he re-!e,* an!

/erha",* #ar* $nt )an#+ !e*$%ner p$e#e* ) a"t-at$n0 $nt a #-pan+ $th a

t"rn/er ) R*1.5n 8"p )r- R*4-n t!a+9.

2.K Pr-t$n Strate%$e*

There $* $na!e"ate ), ) app,$#at$n* )r /ent"re )$nan#$n% $n In!$a. The nee!

$* pr-t$na, e))rt* nt n,+ t $n#rea*e the ), ) app,$#at$n* "t a,* t

pp",ar$<e the %ener$# $!ea ) /ent"re )$nan#$n%. The pr-t$n e))rt* ) /ent"re

#ap$ta, )"n!* $n In!$a #",! e #,a**$)$e! a* Cnta#t$n% RGD r%an$*at$n*

Cn!"#t$n% *e-$nar* an! $n!"*tr$a, -eet* here the *a,$ent )eat"re* ) /ent"re

#ap$ta, *#he-e* #an e pre*ente! t pr*pe#t$/e entreprene"r*

Creat$n ) $n)r-at$n *er/$#e*

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Pr-t$n ) entreprene"r$a, a#t$/$t$e*

Vent"re Fa$r* $n h$#h the -e-er* ) the VC $n!"*tr+ ,$*ten t entreprene"r*

a"t the$r ne $!ea* an! "*$ne** prp*$t$n*

Vent"re Cap$ta, Netr'* an! A**#$at$n*

2.J In#ent$/e*

Re#%n$<$n% the $-prtan#e ) /ent"re #ap$ta,0 the %/ern-ent $ntr!"#e! -a=r

,$era,$*at$n ) ta treat-ent )r /ent"re #ap$ta, )"n!* an! *$-p,$)$#at$n )

pr#e!"re*. The*e $n#,"!e! the ),,$n%@

SE&I a* re#%n$<e! a* the *$n%,e n!a, a%en#+.

A ne #,a"*e 823F&9 $n Se#t$n 1 ) In#-e Ta A#t a* $ntr!"#e! $th

e))e#t )r- 1*t (ar#h 2. Th$* #,a"*e *tate! that an+ $n#-e0 ) a /ent"re

#ap$ta, #-pan+ r a /ent"re #ap$ta, )"n!0 )r- an+ $n/e*t-ent* -a!e $n

/ent"re #ap$ta, "n!erta'$n%0 ",! nt e $n#,"!e! $n #-p"t$n% the tta,

$n#-e.

Se#t$n 115U a* a,* $ntr!"#e! $n the In#-e Ta A#t $th e))e#t )r- the

a**e**-ent +ear 212 t e*ta,$*h a VC pa** thr"%h. Th$* -ean* that the

VC pr)$t* $,, nt e tae! t$#e. The re%",ate! VC F"n! 8$th SE&I9 ",!

e ee-pte! )r- ta 8*"=e#t t #erta$n #n!$t$n*9 "t the VC $n/e*tr $,,

ha/e t pa+ ta.

Ear,$er n0 $) a VCF $*he! t a/a$, #erta$n ta ene)$t*0 the VCF ha! t e$t

)r- $n/e*t-ent* -a!e $n a /ent"re #ap$ta, "n!erta'$n% 8VCU9 $th$n te,/e

-nth* ) the VCU ta$n$n% a ,$*t$n%. Be/er0 th$* re"$re-ent a* !ne

aa+ ar"n! N/e-er 2. The F$nan#e &$,, 210 prp*e* t a-en!

*e#t$n 1 823 F&9 * a* t pr/$!e that a VCC 7 VCF $,, #nt$n"e t e

e,$%$,e )r ee-pt$n "n!er *e#t$n 1 823 F&90 e/en $) the *hare* ) the

VCU0 $n h$#h the VCC 7 VCF ha* -a!e the $n$t$a, $n/e*t-ent0 are

*"*e"ent,+ ,$*te! $n a re#%n$<e! *t#' e#han%e $n In!$a.

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2.> In$t$at$/e*

There ha/e een a n"-er ) $n$t$at$/e* + the /ern-ent a* e,, a* the $n!"*tr+ t

pa/e a+ )r a "*$ne** an! re%",atr+ en/$rn-ent that $* #n!"#$/e t ne /ent"re

!e/e,p-ent an! t $nn/at$n at the "*er en!. S-e ) the $n$t$at$/e* $n the pa*t ha/e

$n#,"!e! th*e + the ($n$*tr+ ) F$nan#e0 the Se#"r$t$e*0 E#han%e &ar! ) In!$a

8SE&I90 ($n$*tr+ ) In)r-at$n Te#hn,%+ 8)r-er,+ Depart-ent ) E,e#trn$#*90

State /ern-ent*0 F$nan#$a, In*t$t"t$n*0 the In!$an Vent"re Cap$ta, A**#$at$n.

The*e $n$t$at$/e* re*",te! $n the a/a$,a$,$t+ ) -re than US 5 -$,,$n ) /ent"re

)"n!* )r In!$an /ent"re* !"r$n% 1>>>2. $th the %r$n% rea,$*at$n ) the

$--en*e ptent$a, ))ere! + In!$an te#hn,%+ #-pan$e*0 )"n!$n% pprt"n$t$e* are

rap$!,+ $n#rea*$n%.

The /ern-ent ) In!$a ha* a,rea!+ ta'en ,a"!a,e *tep* t )a#$,$tate the #reat$n )

an en/$rn-ent that $* #n!"#$/e )r /ent"re #ap$ta, )"n!* an! *tart"p* $n In!$a.

The*e $n#,"!e@

$ntr!"#t$n ) *eat e"$t+0

a,,$n% /ent"re #ap$ta, )"n!* t ))*et ,**e* $n#"rre! $n ne #-pan+

a%a$n*t pr)$t* )r- anther an! e*ta,$*h-ent ) %/ern-ent )a#$,$tate!

/ent"re #ap$ta, )"n!*.

Be/er0 the pre*ent re%",atr+ )ra-er' $* *t$,, nt en"%h t pr/$!e )r an

en/$rn-ent that ,a+* *tre** n

en#"ra%$n% the ), ) /ent"re )"n!*0

ea*+ e$t pt$n* 8)r e$ther part+90

-entr$n%0

nn"a,$)$e! a/a$,a$,$t+ ) )"n!*0

an! ), ) p",$# )"n!* )r enterpr$*e "$,!$n% $n In!$a.

In!$a nee!* t en#"ra%e the %rth ) r$*' #ap$ta, + a#t$n% n three )rnt*@

1. The /ern-ent ) In!$a an! In!$an )$nan#$a, $n*t$t"t$n* *h",! #ata,+*e the

pr#e** + #reat$n% I*rae,* <-a,$'e )"n!*. Th$* $,, *t$-",ate #-pet$t$n

"t a,* prte#t entreprene"r* )r- $ne/$ta,e r$*'*.

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2. In!$a *h",! a-en! $t* re%",atr+ )ra-er' * that the VC )"n!* #an earn a

rea*na,e ret"rn n the$r r$*' #ap$ta,.

3. In!$a *h",! a#t$/e,+ pr-te the $n)"*$n ) VC *'$,,* an! #apa$,$t$e*0 e$ther

+ attra#t$n% %,a, VC )"n!* r attra#t$n% -ana%er* )r- the*e )"n!*.

Be/er0 the a/e -/e* nee! t e *"*tant$ate! $th the ear,$e*t $-p,e-entat$n

) the re#--en!at$n* ) the SE&I C--$ttee n Vent"re Cap$ta,.

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2.1 SPECIAL PURPOSE VEBICLE

The De)$n$t$n

An a##"nt0 a!-$n$*tere! + a th$r! part+ that h,!* *hare* "%ht a#' +

the-ana%e-ent $n tr"*t.

TBE ADVANTAES

reater *e#"r$t+ )r ,en!er*

$-pr/e* #re!$t rat$n%

Ler* the #*t ) #ap$ta,

TBE DISADVANTAES

Le** #ntr, /er #a*h ),* %enerate! + pr=e#t

Ta treat-ent ) SPV *t$,, "n#,ear

&etter-ana%e-ent)!etA!-$n$*trat$n )ee* #an e h$%hrepa+-entEna,e* ne /ent"re* t ra$*e )"n!*. Re"$re* $nten*$/e -n$tr$n% + tr"*tee

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2.11 SPECIAL PURPOSE VEBICLE

The De)$n$t$n

An a##"nt0 a!-$n$*tere! + a th$r! part+ that h,!* *hare* "%ht a#' + the

-ana%e-ent $n tr"*t.

TBE ADVANTAES

reater *e#"r$t+ )r ,en!er*

$-pr/e* #re!$t rat$n%

Ler* the #*t ) #ap$ta,

TBE DISADVANTAES

Le** #ntr, /er #a*h ),* %enerate! + pr=e#t

Ta treat-ent ) SPV *t$,, "n#,ear

&etter-ana%e-ent)!etA!-$n$*trat$n )ee* #an e h$%hrepa+-entEna,e* ne /ent"re* t ra$*e )"n!*. Re"$re* $nten*$/e -n$tr$n% + tr"*tee

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Chapter – 4

Vent"re Cap$ta,$*t – A 'e+ p,a+er

4.1 R,e ) Vent"re Cap$ta,$*t

-ana%er*7an'er 4.2 D$))eren#e eteen VC an! -ne+

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VENTURE CAPITALISTS – A 'e+ p,a+er

4.1 R,e ) /ent"re Cap$ta,$*t*

Cn/ent$na, )$nan#$n% %enera,,+ eten!* ,an* t #-pan$e*0 h$,e VC )$nan#$n%

$n/e*t* $n e"$t+ ) the #-pan+. Cn/ent$na, )$nan#$n% ,'* t #"rrent $n#-e $.e.

!$/$!en! an! $ntere*t0 h$,e $n VC )$nan#$n% ret"rn* are + a+ ) #ap$ta,

appre#$at$n. A**e**-ent $n #n/ent$na, )$nan#$n% $* #n*er/at$/e $.e. ,er the r$*'0

h$%her the #han#e* ) %ett$n% ,an. On the ther han! VC )$nan#$n% $* a r$*' ta'$n%

)$nan#e here ptent$a, ret"rn* "te$%h r$*' )a#tr*.

Vent"re Cap$ta,$*t* a,* ,en! -ana%e-ent *"pprt an! pr/$!e entreprene"r* $th

-an+ ther )a#$,$t$e*. The+ e/en part$#$pate $n the -ana%e-ent pr#e**. VC*

%enera,,+ $n/e*t $n "n,$*te! #-pan$e* an! -a'e pr)$t n,+ a)ter the #-pan+ ta$n*

,$*t$n%. VC* eten! nee! a*e! *"pprt $n a n"-er ) *ta%e* ) $n/e*t-ent* "n,$'e

*$n%,e r"n! )$nan#$n% + #n/ent$na, )$nan#$er*. VC;* are $n )r ,n% r"n an! rare,+

e$t e)re 3 +ear*. T *"*ta$n *"#h #--$t-ent VC an! pr$/ate e"$t+ %r"p* *ee'

etre-e,+ h$%h ret"rn* a ret"rn ) 3 $n r"pee ter-*. A an' r an FI $,, )"n! a

pr=e#t a* ,n% a* $t $* *"re that en"%h #a*h ), $,, e %enerate! t repa+ the ,an*.

VC $* nt a ,en!er "t an e"$t+ partner.

Vent"re #ap$ta,$*t* ta'e h$%her r$*'* + $n/e*t$n% $n an ear,+*ta%e #-pan+ $th ,$tt,e

r n h$*tr+0 an! the+ epe#t a h$%her ret"rn )r the$r h$%hr$*' e"$t+ $n/e*t-ent.

Internat$na,,+0 VC* ,' at an $nterna, rate ) ret"rn 8IRR9 nrth ) 4 p,"*. In

In!$a0 the $!ea, en#h-ar' $* $n the re%$n ) an IRR ) 25 )r %enera, )"n!* an!

-re than 3 )r IT*pe#$)$# )"n!*. $th re*pe#t t $n/e*t$n% $n a "*$ne**0

$n*t$t"t$na, /ent"re #ap$ta,$*t* ,' )r a/era%e ret"rn* ) at ,ea*t 4 per #ent t 5

per #ent )r *tart"p )"n!$n%. Se#n! an! ,ater *ta%e )"n!$n% "*"a,,+ re"$re* at ,ea*t a

2 per #ent t 4 per #ent ret"rn #-p"n!e! per ann"-. (*t )$r-* re"$re ,ar%e

prt$n* ) e"$t+ $n e#han%e )r *tart"p )$nan#$n%.

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The VC Ph$,*ph+

A* a%a$n*t &"%ht "t !ea,* 8&OD*90 VC* #arr+ "t /er+ !eta$,e! !"e !$,$%en#e an!

-a'e 2K +ear $n/e*t-ent*. The VC* a,* han!h,! an! n"rt"re the #-pan$e* the+

$n/e*t $n e*$!e* he,p$n% therea#h IPO *ta%e hen /a,"at$n* are )a/"ra,e. VCF*

he,p entreprene"r* at )"r *ta%e*@ $!ea %enerat$n0 *tart"p0 ra-p"p an! )$na,,+ $n the

e$t.

A##r!$n% t In!$an Vent"re Cap$ta, A**#$at$n0 a,-*t 41 8R* 5146.4 -9 ) the

tta, /ent"re #ap$ta, $n/e*t-ent $* $n *tart"p pr=e#t* ),,e! + R* 44KJ.6 - $n

,ater *ta%e pr=e#t* an! n,+ R* J2.>5 $n t"rnar"n! pr=e#t* . (a=r$t+ ha/e $n/e*te!

$n n,+ three *ta%e* ) $n/e*t-ent0 $n!$#at$n% that -*t VC* $n In!$a ha/e nt *tarte!

!e/e,p$n% n$#he* )r $n/e*t$n% $th re%ar! t the *ta%e* ) pr=e#t*.

The -a$n !$))$#",t+ $n ear,+ *ta%e )"n!$n% are re,ate! t ,a#' ) e$t pprt"n$t$e* a*

pra$,$t+ ) an IPO r "+ "t + ) VC *ta'e $* ,e** !"e t ,a#' ) "n!er*tan!$n%

)r e/a,"at$n ) the 'n,e!%e a*e! #-pan$e* #-pare! t the #-pan$e* $n the

tra!$t$na, *e#tr*. S-e *"#h VC* are@ ICICI /ent"re*0 Draper0 SID&I an! An%e,*.

Apart )r- )$nan#e0 /ent"re #ap$ta,$*t* pr/$!e netr'$n%0 -ana%e-ent an!

-ar'et$n% *"pprt a* e,,. The /ent"re #ap$ta,$*t $* a "*$ne** partner0 *har$n% the

r$*'* an! rear!* an! pr/$!e* *trate%$#0 perat$na, an! )$nan#$a, a!/$#e t the

#-pan+ a*e! n eper$en#e $th ther #-pan$e* $n *$-$,ar *$t"at$n*.

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(ana%e-ent ) $n/e*tee )$r-*

The /ent"re )"n!* a!! /a,"e t the #-pan+ + a#t$/e $n/,/e-ent $n r"nn$n% )

enterpr$*e* $n h$#h the+ $n/e*t. Th$* $* #a,,e! ?han!* n? r ?pra#t$/e? appra#h.

Draper )a,,* $n th$* #ate%r+. In#"atr )"n!* ,$'e e/ent"re* a,* ha/e a *$-$,ar

appra#h tar!* the$r $n/e*t-ent. Be/er there #an e ?han!* ))? appra#h ,$'e

that ) Cha*e. ICICI Vent"re* )a,,* $n the ,$-$te! ep*"re #ate%r+.

In %enera,0 /ent"re )"n!* h )"n! *ee! r *tart "p* ha/e a #,*er $ntera#t$n $th the

#-pan$e* an! a!/$#e n *trate%+0 et# h$,e the pr$/ate e"$t+ )"n!* treat the$r

ep*"re ,$'e an+ ther ,$*te! $n/e*t-ent. Th$* $* part$a,,+ ="*t$)$e!0 a* the+ ten! t

$n/e*t $n -re -at"re *tr$e*.

4.2 D$))eren#e eteen a /ent"re #ap$ta,$*t an! an'er*7-ne+

-ana%er*

&an'er $* a -ana%er ) ther pep,e* -ne+ h$,e the /ent"re #ap$ta,$*t $* a*$#a,,+

an $n/e*tr.

Vent"re #ap$ta,$*t %enera,,+ $n/e*t* $n ne /ent"re* *tarte! + te#hn#rat* h

%enera,,+ are $n nee! ) entreprene"r$a, a$! an! )"n!*.

Vent"re #ap$ta,$*t* %enera,,+ $n/e*t $n #-pan$e* that are nt ,$*te! n an+ *t#'

e#han%e*. The+ -a'e pr)$t* n,+ a)ter the #-pan+ ta$n* ,$*t$n%.

The -*t $-prtant !$))eren#e eteen a /ent"re #ap$ta,$*t an! #n/ent$na,

$n/e*tr* an! -"t"a, )"n!* $* that he $* a *pe#$a,$*t an! ,en!* -ana%e-ent *"pprt an!

a,*

F$nan#$a, an! *trate%$# p,ann$n%

Ota$n an' an! ther !et )$nan#$n%

A##e** t $nternat$na, -ar'et* an! te#hn,%+

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Intr!"#t$n t *trate%$# partner* an! a#"$*$t$n tar%et* $n the re%$n

Re%$na, epan*$n ) -an")a#t"r$n% an! -ar'et$n% perat$n*

Ota$n a p",$# ,$*t$n%

D$))eren#e*

P$nt*O=e#t$/e

B,!$n% per$!

In*tr"-ent*

Pr$#$n%

C,,atera,

Oner*h$p

Cntr,

Vent"re F$nan#e

(a$-$<e ret"rn

25 +ear*

Det F$nan#eIntere*t pa+-ent

Shrt7,n% ter-

C--n *hare*0 #n/ert$,e n!*0Lan0 )a#tr$n%0 ,ea*$n%pt$n*0 arrant*Pr$#e earn$n%* rat$0 net tan%$,e a**et* Intere*t *prea!

Ver+ rare

e*

e*

N

($nr$t+ *hareh,!er*0 r$%ht* prte#t$n0C/enant* ar! -e-er*

In#rea*e! ,e/era%eI-pa#t n &a,an#e *heetRe!"#e! ,e/era%e) )$nan#e!

E$t (e#han$*- P",$# ))er$n%0 *a,e t th$r! part+0 *a,e tLan repa+-ententreprene"r

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Chapter – 5

Pr;* an! ";* ) VCF

5.1

5.2

5.3

S"##e** )a#tr*

Cr$t$#a, )a#tr

Pr,e-* )a#e* + VCF

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5.1 S"##e** )a#tr* ) VCF*

1. In!"*tr+*pe#$)$# #n#entrat$n ) $n/e*t-ent* +$e,!* etter ret"rn* than

%e%raph$#a,,+ #n#entrate! $n/e*t-ent*.

2. Netr'$n% $th $n!"*tr$a, partner* $* $-prtant *$n#e the*e tar%et #-pan$e* are

ptent$a, #,$ent* an! e$t partner*.

3. Netr'$n% $th "n$/er*$t$e* an! re*ear#h $n*t$t"te* he,p* $!ent$)+ ne

te#hn,%$e* an! $n/e*t-ent tar%et*.

4. Cn#entrat$n% $n/e*t-ent* $n #are)",,+ *e,e#te! #-pan$e* *h$n% $nternat$na,

pr-$*e $,, +$e,! etter ret"rn* than !$*tr$"t$n% the #ap$ta, a#r** *e/era, *-a,,er

$n/e*t-ent*. It $* #r"#$a, that /ent"re #ap$ta,$*t* a#t$/e,+ *"pprt the %rth an!

$nternat$na,$*at$n ) the #-pan$e* thr"%h the$r $n!"*tr+*pe#$)$# 'nh an!

$nternat$na, #nta#t*.

5. $th re*pe#t t the ret"rn* )r- the )"n!0 $t $* /$ta, that a!e"ate #ap$ta, $* re*er/e!

)r )"rther $n/e*t-ent $n the e*t $n/e*t-ent tar%et* an! )r -a$nta$n$n% the

h,!$n%* "nt$, the e$t.

6. M$nt $n/e*t-ent* $th partner* pr/$!$n% a!!e! /a,"e #ntr$"te t the *"##e** )

the tar%et #-pan$e* an! $-pr/e the ret"rn* )r- the )"n!.

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5.2 Cr$t$#a, Fa#tr*

In 1>>>0 SE&I 8Se#"r$t$e* an! E#han%e &ar! ) In!$a9 ha! *et "p a #--$ttee "n!er

the Cha$r-an*h$p ) (r. . &. Chan!ra*e'har t ,' $nt the $**"e* ) /ent"re

#ap$ta, $n In!$a. The Reprt ) the . &. Chan!ra*e'har C--$ttee n /ent"re #ap$ta,

$!ent$)$e! the ),,$n% a* #r$t$#a, )a#tr* )r the *"##e** ) VC $n!"*tr+ $n In!$a@

The re%",atr+0 ta an! ,e%a, en/$rn-ent *h",! p,a+ an ena,$n% r,e. Th$*

e-pha*$<e* the )a#$,$tat$n% an! pr-t$na, r,e ) re%",at$n. Internat$na,,+0

/ent"re )"n!* ha/e e/,/e! $n an at-*phere ) *tr"#t"ra, ),e$$,$t+0 )$*#a,

ne"tra,$t+ an! perat$na, a!apta$,$t+. An! e nee! t pr/$!e re%",atr+

*$-p,$#$t+ an! *tr"#t"ra, ),e$$,$t+ n the *a-e ,$ne*. There $* a,* the nee!

)r a ,e/e, p,a+$n% )$e,! eteen !-e*t$# an! ))*hre /ent"re #ap$ta,

$n/e*tr*. Th$* ha* a,rea!+ een !ne )r the -"t"a, )"n! $n!"*tr+ $n In!$a.

In/e*t-ent0 -ana%e-ent an! an e$t pt$n *h",! pr/$!e ),e$$,$t+ t *"$t

the "*$ne** re"$re-ent* an! *h",! a,* e !r$/en + %,a, tren!*. Vent"re

#ap$ta, $n/e*t-ent* ha/e t+p$#a,,+ #-e )r- h$%h net rth $n!$/$!"a,* h

ha/e r$*' ta'$n% #apa#$t+. S$n#e h$%h r$*' $* $n/,/e! $n /ent"re )$nan#$n%0

/ent"re $n/e*tr* %,a,,+ *ee' $n/e*t-ent an! e$t n /er+ ),e$,e ter-*0

h$#h pr/$!e* the- $th #erta$n ,e/e,* ) prte#t$n. S"#h e$t *h",! e

p**$,e thr"%h IPO* an! -er%er* 7 a#"$*$t$n* n a %,a, a*$* an! nt ="*t

$th$n In!$a.

There $* a,* the nee! )r $!ent$)+$n% an! $n#rea*$n% the !-e*t$# p, )

)"n!* )r /ent"re #ap$ta, $n/e*t-ent. In US0 apart )r- h$%h net rth

$n!$/$!"a,* an! an%e, $n/e*tr*0 pen*$n )"n!*0 $n*"ran#e )"n!*0 -"t"a, )"n!*

et#. pr/$!e a /er+ $% *"r#e ) -ne+. The *hare ) #rprate )"n!$n% $* a,*

$n#rea*$n% an! $t a* a* h$%h a* 25.> per#ent $n the +ear 1>>J a* #-pare! t 2

per#ent $n 1>>5. Crprat$n* are a,* *ett$n% "p the$r n /ent"re #ap$ta,

)"n!*. S$-$,ar a/en"e* nee! t e $!ent$)$e! $n In!$a a,*.

$th $n#rea*$n% %,a, $nte%rat$n an! -$,$t+ ) #ap$ta, $t $* $-prtant that

In!$an /ent"re #ap$ta, )$r-* a* e,, a* /ent"re )$nan#e! enterpr$*e* e a,e t

ha/e

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pprt"n$t$e* )r $n/e*t-ent ara!. Th$* ",! nt n,+ enhan#e the$r a$,$t+ t

%enerate etter ret"rn* "t a,* a!! t the$r eper$en#e an! epert$*e t )"n#t$n

*"##e**)",,+ $n a %,a, en/$rn-ent. e nee! "r enterpr$*e* t e#-e %,a, an!

#reate the$r n *"##e** *tr$e*. There)re0 a"t-at$#0 tran*parent an! ),e$,e nr-*

nee! t e #reate! )r *"#h $n/e*t-ent* + !-e*t$# )$r-* an! enterpr$*e*.

Vent"re #ap$ta, *h",! e#-e an $n*t$t"t$na,$*e! $n!"*tr+ )$nan#e! an!

-ana%e! + *"##e**)", entreprene"r*0 pr)e**$na, an! *ph$*t$#ate! $n/e*tr*.

,a,,+0 /ent"re #ap$ta,$*t* are nt -ere,+ )$nan#e pr/$!er* "t are a,*

#,*e,+ $n/,/e! $th the $n/e*tee enterpr$*e* an! pr/$!e epert$*e + a+ )

-ana%e-ent an! -ar'et$n% *"pprt. Th$* $n!"*tr+ ha* !e/e,pe! $t* n

eth* an! #",t"re. Vent"re #ap$ta, ha* n,+ ne #--n a*pe#t that #"t*

a#r** %e%raph+ $.e. $t $* r$*' #ap$ta, $n/e*te! + epert* $n the )$e,!. It $*

$-prtant that /ent"re #ap$ta, $n In!$a e a,,e! t !e/e,p /$a pr)e**$na,

an! $n*t$t"t$na, -ana%e-ent

In)ra*tr"#t"re !e/e,p-ent a,* nee!* t e pr$r$t$*e! "*$n% %/ern-ent

*"pprt an! pr$/ate -ana%e-ent. Th$* $n/,/e* #reat$n ) te#hn,%+ a* e,,

a* 'n,e!%e $n#"atr* )r *"pprt$n% $nn/at$n an! $!ea*. RGD a,* nee!*

t e pr-te! + %/ern-ent a* e,, a* ther r%an$*at$n*.

The a/e reprt a* e,, re#e$/e! + the /ern-ent an! )e $**"e* ha/e a,rea!+

een re*,/e!.

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5.3 Pr,e-* %enera,,+ a**#$ate! $th Vent"re Cap$ta,

1. The r$*' a**#$ate! $th tr"e /ent"re #ap$ta, $* %reater than hen pr/$!$n% #ap$ta,

t an e*ta,$*he! "*$ne**. De*p$te the e*t e))rt* an! $ntent$n*0 *-e *tart"p* $,,nt *"##ee!. That $* *$-p,+ part ) the %a-e. In t!a+* -ar'et0 th"%h0 e*pe#$a,,+ $)

!ea,$n% $th h$%h,+ ,e/era%e! #rprat$n*0 e ha/e *een there $* *"*tant$a, r$*'

a**#$ate! $th e,, e*ta,$*he! "*$ne**e* a* e,, a* $th *tart"p*. The r$*' $*

!$))erent0 th"%h0 an! pep,e pr/$!$n% tr"e /ent"re #ap$ta, re#%n$<e* th$* r$*'

rear! tra!e)).

2. (*t $n/e*tr* ha/e an "nrea,$*t$# /$e ) /ent"re #ap$ta,. The+ epe#t the h$%h

ret"rn* p",$#$<e! $th re*pe#t t *"##e**)", ne /ent"re* "t ! nt ant t ta'e the

atten!ant r$*'. Cn*e"ent,+0 *"#h $n/e*tr* % $nt the -ar'etp,a#e ,'$n% )r

pprt"n$t$e*0 #,a$-$n% t ))er /ent"re #ap$ta,0 "t ne/er )$n!$n% an $n/e*t-ent that

-eet* the$r re"$re-ent*.

3. (*t /ent"re )"n! -ana%er* #-e )r- an'$n%0 pr)e**$na, -ne+ -ana%e-ent

r #rprate -ana%e-ent h$,e *-e #-e !$re#t,+ )r- "*$ne** *#h, an! ha/e

een e-p,+ee* ) /ent"re #ap$ta, )$r-* )r the$r ent$re #areer. Cn*e"ent,+0 the /a*t-a=r$t+ ) /ent"re #ap$ta, #-pan+ e-p,+ee* at an+ ,e/e, ha/e n a#t"a,

?/ent"re? r entreprene"r$a, eper$en#e0 part$#",ar,+ $th *tart"p*. A ,a#' )

eper$en#e an! "n!er*tan!$n% tran*,ate* $nt a ,a#' ) #-)rt $th the #reat$n pha*e

) a "*$ne** an! a re,"#tan#e t $n/e*t $n *"#h !ea,*.

4. Entreprene"r*0 $n %enera,0 ha/e !$))erent %a,*0 -t$/at$n* an! per*na,$t$e* than

an'er* r #rprate ee#"t$/e*0 h -a+ epe#t t *ee pep,e ,$'e the-*e,/e* a*

#,$ent*. The*e !$))eren#e* #an )ten #reate a %ap eteen the /ent"re #ap$ta,$*t an! the

entreprene"r *"))$#$ent t re*",t $n a re=e#t$n ) the "*$ne** prp*a, $rre*pe#t$/e )

the -er$t* ) the "*$ne**.

5. The pr$n#$pa, *"r#e ) #ap$ta, )r -*t entreprene"r* $* )r$en!* an! )a-$,+. On#e

that *"r#e r"n* "t 8$) $t e$*t* at a,,90 /ent"re #ap$ta, #-pan$e* -a+ e the n,+

a,ternat$/e t ta$n )"n!$n% h$#h0 -*t ,$'e,+0 are *-a,, r $n*"))$#$ent $n

#-par$*n t the #*t )0 )r $n*tan#e0 "$,!$n% a )a#tr+ r "+$n% a pr)$ta,e %$n%

#n#ern. Fe /ent"re #ap$ta, #-pan$e* ant t *pen! the t$-e e/a,"at$n% *-a,, !ea,*

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hen0 $th$n the #n*tra$nt* ) the$r $n/e*t$n% ,$-$t* an! $n the *a-e a-"nt ) t$-e0

the+ #",! part$#$pate $n )eer "t ,ar%er !ea,*.

6. Three 'e+ e,e-ent* t a *"##e**)", ne /ent"re are 8nt $n r!er ) pr$r$t+9@ a

%! $!ea0 a!e"ate #ap$ta, an! %! -ana%e-ent. A )a$,"re ) an+ ne ) the*e

e,e-ent* #an !- the enterpr$*e. D"e pr$-ar$,+ t a ,a#' ) eper$en#e $n the

#reat$n r *tart"p pha*e0 /ent"re #ap$ta, #-pan$e* are )ten ,a#'$n% $n the$r a$,$t+

t e/a,"ate an! re#%n$<e@

8a9 a ?%! $!ea? e#a"*e $!ea* an! the pr=e#t$n* a**#$ate! $th the- are *

$ntan%$,e0 "n,$'e * the+ th$n' the pr=e#t$n* ) an e*ta,$*he! #-pan+

89 ?a!e"ate #ap$ta,? )r a *tart"p e#a"*e tra!$t$na, /ent"re #ap$ta, #-pan$e* -a+

nt ha/e the eper$en#e t "n!er*tan! hether the entreprene"r* %a,* #an e

a#h$e/e! $th the #ap$ta, re"e*te! r t he,p the entreprene"r !eter-$ne the

apprpr$ate #ap$ta, re"$re-ent* )r a *tart"p

8#9 the pre*en#e r a*en#e ) a!e"ate entreprene"r$a, -ana%e-ent0 h$#h #an e

!$))erent than that ) a ,ar%e e*ta,$*he! #rprat$n a %! ea-p,e ) h$#h a*

the #han%$n% nee! ) App,e C-p"ter* hen $t rep,a#e! Ste/en M* $th Mhn

S#",,e+.

K. De*p$te the )a#t that -an+ )"n! -ana%er* $,, *a+ that $na!e"ate -ana%e-ent $*

the pr$-ar+ rea*n )r "*$ne** )a$,"re0 the+ $,, rare,+ !e/te t$-e t a**$*t

-ana%e-ent t he,p a#h$e/e a %reater ,$'e,$h! ) *"##e**. Cn*e"ent,+0 *-e

$n/e*t-ent* are !e*t$ne! t )a$, )r- the *tart an! -an+ )$r-* "*e e/er+ne e,*e*

)a$,"re* a* a rea*n )r the- t a/$! *tart"p*.

J. (an+ #-pan$e* an! $n!$/$!"a,* #-p,a$n that the+ ha/e -ne+ t $n/e*t $n

?%!? pr=e#t*0 "t nne #an e )"n!. F$r*t0 hat $* ?%!? )r ne per*n r )$r-

-a+ nt e ?%!? )r anther. That !e)$n$t$n $* %"$!e! + %a,* an! re"$re-ent* )

the $n!$/$!"a, $n/e*tr. An ,!er $n/e*tr -a+ e ,'$n% )r $n#-e h$,e a +"n%er

$n/e*tr -a+ e ,'$n% )r appre#$at$n. O)ten0 th*e %a,* are "nrea,$*t$# a* app,$e!

t /ent"re #ap$ta,.

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Chapter6

Ca*e St"!$e*

6.1

6.2

6.3

Ca*e *t"!+1

Ca*e *t"!+2

Ca*e *t"!+3

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Ca*e St"!$e*

6.1 Ca*e St"!+1@ R$*e ) U e#n-+

The e#n-$# $-pa#t ) pr$/ate e"$t+ an! /ent"re #ap$ta, n the U@ eep$n%

Ln!n an! the U the #entre ) the E"rpean $n!"*tr+

Pr$/ate E"$t+ an! /ent"re #ap$ta, -a'e* a /a,"a,e #ntr$"t$n t the e#n-+

%enera,,+ + ha/$n% a p*$t$/e e))e#t n the #-pan$e* $n h$#h pr$/ate e"$t+ $*

$n/e*te!. In a!!$t$n0 the $n!"*tr+ -a'e* a /er+ *$%n$)$#ant #ntr$"t$n t the

)$nan#$a, *er/$#e* $n!"*tr+ an! $n part$#",ar p,a+* an $-prtant r,e $n -a$nta$n$n% the

C$t+ ) Ln!n a* E"rpe* pre-$er )$nan#$a, #entre an! he,p$n% t "$,! $t a* the

r,!* pre-$er )$nan#$a, #entre.

The $n!"*tr+ ha* *hn $n#re!$,e %rth /er the ,a*t )e +ear*0 th $n ter-* ) the

)"n!* $t ha* ra$*e! an! the #ap$ta, $t -ana%e* an! $n the ,e/e, ) $n/e*t-ent that $*

-a!e0 $th %rth #-e* re*pn*$$,$t+ a* e,, a* pprt"n$t+. The %rth ) the

$n!"*tr+ ha* $n#rea*e! $t* pr)$,e an! $th that pr)$,e #-e* a ,e%$t$-ate $ntere*t $n

hat the $n!"*tr+ $* !$n% )r- the p",$#0 the pre** an! ) #"r*e the re%",atr+

a"thr$t$e*.

The $n!"*tr+ $* #"rrent,+ )a#$n% t -a=r re/$e* + the FSA $n the D$*#"**$n

paper the+ re#ent,+ p",$*he! an! + the Trea*"r+ )#"*$n% n the taat$n0 nt ="*t )

#ap$ta, %a$n* -a!e + the $n!"*tr+0 "t a,* the #ap$ta, %a$n* -a!e + the r$*'ta'$n%

entreprene"r* an! -ana%e-ent tea- that a* an $n!"*tr+ VCF a#'.

A#h$e/$n% the r$%ht "t#-e )r the $n!"*tr+ )r- the ta re/$e an! #nt$n"$n% t

en*"re re%",at$n $* apprpr$ate an! nt "r!en*-e are t /$ta, ta*'* the &r$t$*h

Vent"re Cap$ta, A**#$at$n 8&VCA9 an! the $n!"*tr+ )a#e*.

The &VCA an! $t* r'

The &VCA $* the $n!"*tr+ !+ that repre*ent* the U pr$/ate e"$t+ an! /ent"re

#ap$ta, $n!"*tr+.

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Pr$/ate e"$t+ -ean* the e"$t+ )$nan#$n% ) #-pan$e* at -an+ *ta%e* $n the ,$)e ) a

#-pan+ )r- *tart"p thr"%h epan*$n a,, the a+ thr"%h t "+"t* )

e*ta,$*he! #-pan$e* that $n t!a+* r,! #an e /er+ *$%n$)$#ant an! ,ar%e

tran*a#t$n*.

Vent"re #ap$ta, a* a ter- t+p$#a,,+ #/er* ear,+ *ta%e* ) *tart"p r %rth )"n!$n% r

epan*$n #ap$ta,. The ter- "+"t* 8(&O0 (&I0 et#9 re)er* t "*$n% pr$/ate e"$t+

t )$nan#e the #han%e $n ner*h$p ) a #-pan+.

The #--n threa!* an! hen#e the ter- pr$/ate e"$t+ $* that the $n/e*t-ent*

-a!e $n "n"te! e"$t+ 8$.e. nt p",$#,+ "te! e"$t+9 an! $nt #-pan$e* that

ha/e rea, %rth ptent$a, h$#h #an e t"rne! ar"n! r tran*)r-e! "n!er pr$/ate

e"$t+ ner*h$p a* pp*e! t e$n% #n*tant,+ $n the *pt,$%ht that ha/$n% a "te!

*hare pr$#e -ean* )r a p",$# #-pan+.

The &VCA repre*ent* the h,e #r** *e#t$n ) the pr$/ate e"$t+ $n!"*tr+ $n the U

)r- *-a,, *ee! *ta%e /ent"re )"n!* a,, the a+ thr"%h t the ,ar%e pr$/ate e"$t+

)$r-* h )#"* a,-*t e#,"*$/e,+ n "+"t* an! h are a,-*t e#-$n%

h"*eh,! na-e* t!a+.

&VCA -e-er*h$p #-pr$*e* e,, /er > ) a,, Ua*e! pr$/ate e"$t+ an!

/ent"re #ap$ta, )"n!* an! the$r a!/$*r*.

The r,e ) the &VCA $* t en*"re that the U $n!"*tr+ $* prper,+ repre*ente! t

p,$t$#$an* an! p,$#+ -a'er* here at e*t-$n*ter0 a#r** the U an! $n &r"**e,*.

The $n!"*tr+* e#n-$# $-pa#t

The *"r/e+ *h* n#e a%a$n that pr$/ate e"$t+a#'e! #-pan$e* are a *$%n$)$#ant

!r$/er $n the U e#n-+ an! $t* %,a, #-pet$t$/ene**.

e+ )$n!$n%* ) th$* reprt *h n#e a%a$n that $n the )$/e +ear* t 25726@

The %rth ) e-p,+-ent $n pr$/ate e"$t+a#'e! #-pan$e* a* )a*ter than th

FTSE 1 an! FTSE 25 #-pan$e* 8> pa /* 1 an! 2 re*pe#t$/e,+9

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Sa,e* %re )a*ter $n pr$/ate e"$t+a#'e! #-pan$e* #-pare! $th FTSE 1 an!

25 #-pan$e* 8> /*. K an! 59

Eprt* )r- pr$/ate e"$t+a#'e! #-pan$e* %re at a )a*ter rate than the nat$na,

%rth rate 86 /*. 29

In/e*t-ent %re )a*ter than the nat$na, a/era%e 81J /* 19

It $* n e,, e*ta,$*he! that the per)r-an#e ) pr$/ate e"$t+a#'e! #-pan$e*

*$%n$)$#ant,+ *tren%then* the U e#n-+ an! $-pr/e* $nternat$na, #-pet$t$/ene**

an! #reate* =* at a #n*$!era,+ )a*ter rate than ther pr$/ate *e#tr #-pan$e*. It $*

n e*t$-ate! that #-pan$e* that ha/e re#e$/e! pr$/ate e"$t+ )"n!$n% a##"nt )r

the e-p,+-ent ) ar"n! 2.J -$,,$n pep,e $n the U0 e"$/a,ent t 1> ) U

pr$/ate *e#tr e-p,+ee*.

It $* a,* *$%n$)$#ant t nte that >2 ) #-pan$e* that re*pn!e! t the *"r/e+ *a$!

that $th"t pr$/ate e"$t+ the "*$ne** ",! nt ha/e e$*te! at a,, r ",! ha/e

!e/e,pe! ,e** rap$!,+.

The rea*n )r th$* $* that pr$/ate e"$t+ $n/e*t-ent $* -re than ="*t the pr/$*$n )

#ap$ta,. Re*pn!ent* t the *"r/e+ nte! that *trate%$# !$re#t$n0 )$nan#$a, a!/$#e an!

he,p $th #nta#t* ere 'e+ a+* $n h$#h pr$/ate e"$t+ )$r-* ha! he,pe! $th the

!e/e,p-ent ) the$r "*$ne**e*.

It $* e*t$-ate! that #-pan$e* h$#h ha/e een pr$/ate e"$t+a#'e! %enerate! tta,

*a,e* ) 424 $,,$n0 eprt* ) 4J $,,$n an! #ntr$"te! /er 26 $,,$n $n tae*.

The )$%"re* $n the E#n-$# I-pa#t S"r/e+ !e-n*trate #,ear,+ that pr$/ate e"$t+

a#'e! "*$ne**e* are a#t$/e a#r** a,, re%$n* ) the U an! are /a,"a,e

#ntr$"tr* t the ea,th ) the*e re%$n*.

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The $-pa#t ) the pr$/ate e"$t+ $n!"*tr+ a* a U )$nan#$a, *er/$#e

The U pr$/ate e"$t+ $n!"*tr+ $* p,a+$n% an $n#rea*$n%,+ *$%n$)$#ant r,e a* a *"r#e

) re/en"e )r )$r-* perat$n% $th$n the ra!er )$nan#$a, an! pr)e**$na, *er/$#e*

$n!"*tr+0 #ntr$"t$n% t the /era,, $-pet"* that the*e $n!"*tr$e* pr/$!e t the U

e#n-+.

25 !ata *h* that@

Pr$/ate e"$t+re,ate! a#t$/$t$e* %enerate! e*t$-ate! )ee re/en"e )r )$nan#$a, an!

pr)e**$na, *er/$#e* )$r-* ) /er 3.3 $,,$n0 repre*ent$n% ar"n! K ) the tta,

ann"a, t"rn/er ) the U )$nan#$a, *er/$#e* $n!"*tr+.

There are -re than 505 $n!$/$!"a,* 8305 ) h$#h are $n/e*t-ent pr)e**$na,*9

e-p,+e! $n *-e 26 pr$/ate e"$t+0 /ent"re #ap$ta,0 )"n!*))"n!* an!

*e#n!ar$e* $n/e*t-ent )$r-* $n the U.

The U ha* a netr' ) ar"n! K5 )$nan#$a,0 pr)e**$na, an! "*$ne** *er/$#e*

)$r-* pr/$!$n% a!/$*r+ an! )$nan#$a, *"pprt t pr$/ate e"$t+ an! /ent"re #ap$ta,

)$r-*. The+ e-p,+ a )",, t$-e e"$/a,ent p, ) #,*e t 60K ee#"t$/e*

en%a%e! $n pr$/ate e"$t+re,ate! a#t$/$t$e*.

Ta'en t%ether0 there are /er 10 h$%h,+ *'$,,e! pr)e**$na,* e-p,+e! a#r**

/er 10 )$r-* en%a%e! e$ther !$re#t,+ r $n!$re#t,+ $n pr$/ate e"$t+re,ate!

a#t$/$t$e*.

Fr e/er+ pr$/ate e"$t+ ee#"t$/e $n/e*t$n% !$re#t,+ $n U #-pan$e*0 there are 2.3

)",, t$-e e"$/a,ent a!/$*r* r )$nan#e ee#"t$/e* pr/$!$n% *pe#$a,$*t a!/$#e an!

*er/$#e*.

F$nan#$a,0 pr)e**$na, an! ther "*$ne** *er/$#e* ee#"t$/e* r'$n% n pr$/ate

e"$t+re,ate! -an!ate* $n 25 %enerate! an a/era%e ) 50 per hea! $n )ee*.

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Pr$/ate e"$t+a#'e! tran*a#t$n* a##"nt )r a *$%n$)$#ant prprt$n ) tta, (GA

a#t$/$t+ $n the U $th a,-*t 3 ) a,, U $n/e*t-ent an'$n% )ee* )r- (GA

an! ,an )$nan#$n% e$n% !er$/e! )r- pr$/ate e"$t+ a#'e! tran*a#t$n* $n 25.

The U pr$/ate e"$t+ $n!"*tr+ ha* ,n% attra#te! #ap$ta, $n/e*t-ent )r- "t*$!e $t*

n *hre*0 $th a,-*t 5 $,,$n ) )re$%n $n/e*t-ent $nt U pr$/ate e"$t+

)"n!* /er the pa*t *$ +ear*.

F"rther-re0 tth$r!* ) the tta, #ap$ta, $n/e*te! + U )$r-* /er the *a-e

per$! a* #--$tte! t #-pan$e* $th$n the U0 !e-n*trat$n% a p*$t$/e net

$n), ) #ap$ta, $nt the U e#n-+.

In/e*t-ent a#t$/$t+

&VCA are an $n!"*tr+ that $n/e*t* a#r** a,, *e#tr*0 )r- *tart"p* t "+"t*0 a,,

ar"n! the U0 a#r** #nt$nenta, E"rpe an! ar"n! the r,!.

In 250 U pr$/ate e"$t+ a#t$/$t+ $n#rea*e! t $t* h$%he*t e/er ,e/e,*0 $n ter-* )

)"n!* ra$*e!0 pr$/ate e"$t+ $n/e*t-ent* -a!e an! a,* !$/e*t-ent*.

Bere are a )e 'e+ )$%"re* that $,,"*trate the *#a,e ) hat e !@

F"n!* ra$*e! )r- $n/e*tr* rea#he! 2K.3 $,,$n.

10535 #-pan$e* ere )$nan#e!.

r,!$!e $n/e*t-ent + U pr$/ate e"$t+ )$r-* $n#rea*e! + 21 $n 25 t

11.K $,,$n )r- >.K $,,$n $n 24.

C-pan$e* )$nan#e! at *tart"p *ta%e $n#rea*e! + > t 2J.

&+ an+ -ea*"re0 the U pr$/ate e"$t+ an! /ent"re #ap$ta, $n!"*tr+ $* a U *"##e**

*tr+. An! +et $t $* !$*app$nt$n% that !e*p$te the )a#t that the ene)$t* ) pr$/ate

e"$t+ a* an a**et #,a** are * #,ear that ,a*t +ear J ) &VCA $n/e*tr* #a-e )r-

/er*ea*0 $th 45 #-$n% )r- the US.

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The pr$-ar+ =e#t$/e ) the pr$/ate e"$t+ $n!"*tr+ $* t !r$/e ret"rn* t $t* $n/e*tr*

an! h$,e $t $* a %! th$n% that e #an attra#t $nar! $n/e*t-ent0 $t $* a p$t+ that the

ene)$#$ar$e* ) the #ap$ta, %a$n* #reate! + th$* $n!"*tr+ pre!-$nant,+ a##r"e t

/er*ea* $n/e*tr*.

U pr$/ate e"$t+ an! /ent"re #ap$ta, $n!"*tr+ $* a %! *trn% &r$t$*h *"##e**

*tr+.

(a=r $n/e*t-ent attra#t $nt the U )r- /er*ea*0 &VCA -a'e -a=r $n/e*t-ent

ar"n! the U $n/e*t$n% $n #-pan$e*0 #reat$n% =* an! "$,!$n% "*$ne**e*0 an!

the+ $n/e*t a#r** #nt$nenta, E"rpe an! ar"n! the r,! r$n%$n% ret"rn* h-e )r

the ene)$t ) the$r $n/e*tr*. Th$* $n!"*tr+ ha* ene)$te! )r- a *trn% #r** Part+

#n*en*"* that "n!er*tan!* the $-prtant r,e &VCA p,a+ $n 'eep$n% the U

e#n-+ #-pet$t$/e an! !+na-$#. Th$* *"pprt $* -"#h appre#$ate!.

Pr$/ate e"$t+ $n/e*t-ent *h",! nt e re%ar!e! a* an en! $n $t*e,)0 "t rather a* part

) a ,$)e #+#,e ) a "*$ne**. The pr$/ate e"$t+ -!e, r$n%* t%ether a*,"te

a,$%n-ent ) $ntere*t eteen $n/e*tr an! -ana%e-ent.

Th$* ena,e* a*,"te )#"* n a%ree! p"rp*e0 the a$,$t+ t a#h$e/e #han%e *$)t,+

an! e))$#$ent,+ an! a #-p,ete #n#entrat$n n the !$re#t$n ) the "*$ne**.

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6.2 Ca*e St"!+ 2@ S$,$#n Va,,e+* *"##e**.

Vent"re #ap$ta,$*t* *"pp,+ the )"n!* t "!!$n% entreprene"r* h ant t *tart the$r

n #-pan$e* an! 4 ) *"#h !ea,* $n the US ta'e p,a#e $n S$,$#n Va,,e+.

Vent"re #ap$ta,$*t* a,* he,p n"rt"re th*e #-pan$e* t *"##e**0 *"pp,+$n%

$ntr!"#t$n* t ptent$a, #"*t-er* r partner*0 a**$*tan#e $th ra$*$n% -re )"n!*0

an! e/en -ana%e-ent *"pprt.

An! /ent"re #ap$ta, ha* een ne ) the etrar!$nar+ %rth $n!"*tr$e* $n the Va,,e+0

$th the a-"nt ) -ne+ $n/e*te! $n /ent"re #ap$ta, )"n!* r$*$n% $n the !e#a!e )r-

1n $n 1>> t 2n $n 1>>> an! near,+ !",$n% a%a$n t 35n $n 2.

Dt.#- )a,,"t

Ann $n,a!0 )"n!er ) /ent"re #ap$ta, )$r- B"--er $n,a!0 $th 1n $n )"n!*

"n!er -ana%e-ent0 a* ne ) the /$#t$-* ) the !t.#- )a,,"t.

Ber #-pan+ ha! a#'e! ne ) the $%%e*t an! -*t e,,'nn $nternet #-pan$e*

*e,,$n% t #n*"-er*0 Pet*.#-0 h$#h *tppe! tra!$n% !e*p$te -$,,$n* ) !,,ar* $n

pr$/ate $n/e*t-ent an! an enth"*$a*t$# *t#' -ar'et ),tat$n.

In her *,ee'0 !enea-e! ))$#e* $n San Fran#$*#* ne,+ )a*h$na,e S(

!$*tr$#t0 h$#h ha* e#-e a ea#n )r !t.#- #-pan$e*0 *he ep,a$ne! hat ent

rn%.

In her /$e0 the $n#rea*$n% )ren<+ $n the *t#' -ar'et )r $nternet #-pan$e*

hate/er the$r "*$ne** p,an r #han#e* ) pr)$ta$,$t+ ha! -eant that t -an+

#-pan$e* ha! een )"n!e! an! r"%ht t the *t#' -ar'et t "$#',+.

T -an+ $neper$en#e! pep,e #a-e $nt the /ent"re #ap$ta, -ar'etp,a#e0 $th

)$nan#$er*0 an'er*0 an! $% #-pan$e* a,, prepare! e/en !e*perate t a#' $nternet

/ent"re*.

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F"n! ra$*$n% !$))$#",t$e* At ne p$nt0 *he *a+*0 1n a ee' a* e$n% ))ere! t

entreprene"r* attra#t$n% t -an+ pep,e h ere ?-er#enar$e* nt -$**$nar$e*?

t the r,! ) enterpr$*e.

&"t hen the -ar'et 'e "p0 an! !t.#- an! te#h *t#'* #ra*he! $n Apr$,0 $t

e#a-e $-p**$,e )r e/en e,,-ana%e! $nternet #-pan$e* t ra$*e a!!$t$na,

-ne+. Pet*.#- an! ther eta$,er* nee!e! -re #ap$ta, t %r an! that a* n

,n%er a/a$,a,e at an+ pr$#e.

N0 *he *a+*0 $t $* "n,$'e,+ that an+ne ",! )"n! an+ $nternet #-pan+ )r at ,ea*t

the net t +ear*0 an! eta$,er*0 r !t.#- #-pan$e* *e,,$n% t #n*"-er*0 are the

?-a! # !$*ea*e? ) the /ent"re #ap$ta, r,! n ne $,, t"#h the- at a,,.

An! $n )"t"re0 the pa#e ) $n/e*t-ent $,, e *,er an! -re -ea*"re!0 ta'$n% 35

+ear* t r$n% #-pan$e* t the *ta%e at h$#h the+ #an e ),ate! n the *t#' -ar'et

an! that /ent"re #ap$ta,$*t* $,, re*"-e the$r r,e ) ?#-pan+ #a#h? rather than

p"re !ea,-a'er*.

Pr)$t hpe* !$--e!

An! n0 ne ) the )a#tr* ,$-$t$n% the )"rther epan*$n ) /ent"re #ap$ta, )$r-* $*

the$r nee! t *pen! -re t$-e -ana%$n% the$r e$*t$n% prt),$ ?ten!$n% t the *$#'

an! nee!+? $n the r!* ) the #h$e) ) ne !t.#- that ha* *"r/$/e!0 On%* Mhn

B"nt.

(r n,a"#h *a+* that $n the he$%ht ) the e"phr$a ne +ear a%0 /ent"re #ap$ta,$*t*

e%an t e,$e/e that the+ #",! -a'e a pr)$t n near,+ an+ #-pan+ the+ a#'e!.

&"t n0 the+ epe#t n,+ a"t ne $n )$/e ) the #-pan$e* the+ a#' t e#-e a

-a=r *"##e** "t th*e *"##e**e*0 $th ret"rn* ) 12 t$-e* $n/e*t-ent0 $,, *t$,,

-a'e the h,e )"n! pr)$ta,e.

V$ta, r,e

Vent"re #ap$ta,$*t* $,, *t$,, p,a+ a /$ta, r,e a* #ata,+*t* )r S$,$#n Va,,e+* )"t"re.

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It a* the pre*en#e ) the r,!* -*t *ph$*t$#ate! /ent"re #ap$ta, $n!"*tr+ that

attra#te! Mhn B"nt ) On% )r- the U t San Fran#$*#. Vent"re #ap$ta,$*t*

ha/e p,a+e! a #r"#$a, part $n ,a"n#h$n% h$* #-pan+0 h$#h pr/$!e* the *)tare )r

e,e#trn$# a,,et* "*e! )r *hpp$n% n the $nternet.

On% a* #reate! $n the ))$#e* ) /ent"re #ap$ta, )$r- Se"$a0 h $ntr!"#e! the

U a*e! #-pan+0 then #a,,e! S-artprt0 t $t* S$,$#n Va,,e+ r$/a,0 Cha$ an!

the+ a%ree! t -er%e $th ea#h ther 3 -$n"te* $nt the -eet$n%.

S"nn+ "t,'

An! On%* ther /ent"re #ap$ta, partner0 At,a*0 p,a+e! a #entra, r,e $n he,p$n%

the- *e#"re the$r )$r*t #"*t-er0 the ,ar%e US an' C$t$an'. It $* netr'* ,$'e the*e

h$#h $,, *e#"re the )"t"re ) the Va,,e+0 a##r!$n% t h$*tr$an an! #$t+ p,anner

Anna Lee Saen$an. Nhere e,*e ha/e /ent"re #ap$ta,$*t* *"#h a #,*e #nne#t$n

$th the$r $n!"*tr+0 *he ar%"e*0 $th -*t -/$n% )r- e$n% entreprene"r*

the-*e,/e*. The$r "n!er*tan!$n% ) the te#hn,%+0 the -ar'et*0 an! the #-pet$t$n

-ean* that entreprene"r$a, 'n,e!%e $* *hare! an! $* tran*)erre! -re "$#',+ here

than an+here e,*e.

It $* that #",t"re that $,, en*"re that0 !e*p$te the *harp #han%e $n -ar'et *ent$-ent0

S$,$#n Va,,e+ $,, re-a$n the r,!* h$%hte#h $n#"atr.

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Ca*e St"!+3@ Fa$,"re ) Ana,% De/$#e* Enterpr$*e*

In 1>J0 Ana,% De/$#e* e*ta,$*he! a #rprate /ent"re pr%ra-0 Ana,% De/$#e*

Enterpr$*e* 8ADE90 t %enerate th attra#t$/e )$nan#$a, ret"rn* an! *trate%$# ene)$t*

$n the )r- ) ,$#en*$n% a%ree-ent* an! a#"$*$t$n*. F"n!$n% a* pr/$!e! +

A-#0 an! ADE ha! $n/e*te! 26 -$,,$n $n 11 )$r-* + 1>J5.

That /er+ +ear A-# #ea*e! #ntr$"t$n% #ap$ta,0 an! the ADE pr%ra- a*

*"*pen!e!. Ar"n! th$* t$-e0 Ana,% De/$#e* t' a K -$,,$n #har%e a%a$n*t

earn$n%* $n 1>>0 $th -*t ) the prt),$ ,$"$!ate!0 $t t' anther 12 -$,,$n

#har%e. O) the 11 )$r-* $n ADE;* prt),$0 1 ere ter-$nate!0 a#"$re! + ther

#-pan$e* at "nattra#t$/e /a,"at$n*0 r re,e%ate! t the ?,$/$n% !ea!.? On,+ ne )$r-

",t$-ate,+ ent p",$#. In th$* #a*e0 ADE;* *ta'e a* * !$,"te! + a -er%er that $t

a* rth n,+ a"t 2 -$,,$n at the t$-e ) the ))er$n%.

hat ent rn% C,ear,+0 the ADE pr%ra- eh$$t* a,, three ) the #,a**$#

*tr"#t"ra, )a$,$n%*@

1. Pr%ra- -ana%er* ere ha-pere! + the ,a#' ) a #,ear =e#t$/e. In*tea!0 the+

ha! a three),! -$**$n@ t $n/e*t $n )$r-* p"r*"$n% te#hn,%$e* re,e/ant t the

n%$n% "*$ne** ) Ana,% De/$#e* an! A-#0 t ta$n pt$n* t a#"$re )$r-* )

$ntere*t t Ana,%;* -ana%e-ent0 an! t %enerate h$%h )$nan#$a, ret"rn*.

2. Ana,% De/$#e*; re*ear#her*0 *ee$n% *#ar#e re*"r#e* e$n% !e/te! t ADE0

re*ente! the pr%ra-. A,*0 A-# n,+ #--$tte! t )"n! the pr%ra- )r )$/e

+ear*0 #n*$!era,+ ,e** t$-e than a* nee!e! t %r the ear,+*ta%e #-pan$e*.

3. In#ent$/e* ) the /ar$"* part$e* appear t ha/e een $-prper,+ a,$%ne!. The

-ana%e-ent ) Ana,% Vent"re* e,$e/e! that the+ ere $n*"))$#$ent,+ rear!e!0 an!

A-# !$! nt *hare $n the pr)$t* %enerate!.

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Chapter K

SURVE AND CONCLUSION

S"r/e+@

Fr %ett$n% a"t pra#t$#a, 'n,e!%e ) r'$n% ) VCF*0 *"r/e+ a* #n!"#te! $n

3 )$r-* na-e,+ SID&I 8S-a,, In!"*tr$a, De/e,p-ent &an' ) In!$a90 M( E"$t+

F"n!0 IDFC E"$t+ F"n!. F,,$n% "e*t$n* ere a*'e! an! *-e ) the an*er*

%$/en ere@

19 hat ! VCF ,'* )r $n e/a,"at$n% a ne #-pan+ (*t #r$t$#a, e,e-entVCF ,'* )r.

A &"*$ne** ptent$a,0 C-pan+ a#'%r"n!0 #re p,an0 Pr-ter !eta$,*.

& rth0 -ana%e-ent0 /a,"e0 &"*$ne** -!e,0 /a,"at$n epe#tat$n0 ret"rn

epe#te!.

C Pr-ter – /er+ #are)",0 "n!er*tan!$n%0 pr)$,e an! a#'%r"n!.

Interpretat$n VCF ,'* )r %! pr)$,e an! a#'%r"n! ) pr-ter0 "*$ne**

ptent$a, an! -ana%e-ent )r e/a,"at$n% $n a ne #-pan+.

29 B $* "*$ne** p,an pre*ente!

A Pre*entat$n0 #a,,$n%0 ee#"t$/e0 e-a$,0 a!/$*r*.

& – Pre*entat$n0 F$nan#$a, -!e,0 -%-t -eet$n%0 -atter ) #n/en$en#e t th

Pr-ter an! VCF.

C – &a*e! n "*$ne** p,an an! $n!"*tr+ $n re,at$n t $t* %rth0 ptent$a,0

%rth0 ret"rn*. Pre*entat$n $* !ne $n )rnt ) In/e*t-ent an'er 8-$!!,e-an

eteen VCF an! Pr-ter9.

Interpretat$n &"*$ne** p,an $* pre*ente! thr"%h /ar$"* a+* ,$'e pre*entat$n0

)$nan#$a, -!e,0 et#. h$#he/er $* -re #n/en$ent )r th part$e*.

39 B ! VCF* !e)$ne the$r #ntr$"t$n

A &+ pr/$!$n% )a#$,$t$e* thr"%h *#he-e* ,$'e Starte! In/e*t-ent an! S-art

(ne+.

& &e*t pra#t$#e*0 A!/$#e )r appra#h$n% t )$nan#$a, -ar'et0 et#.

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C App$nt-ent0 $**"e*0 t$e "p* $th %/ern-ent0 t$e "p $th prt),$ #-pan+0

e"$p-ent*0 tra$n$n%0 /ent"r$n% $n ne area*0 ra!er /$e an! th$n'$n%.

Interpretat$n VCF* !e)$ne* the$r #ntr$"t$n* + *h$n% the Pr-ter* #rre#t

a+ )r ta'$n% apprpr$ate *tep*.

49 hat are the -$,e*tne* $n a#h$e/$n% hether the #-pan+ $,, a#h$e/e the$r

%a,

A – ($,e*tne* are ,a$! !n !"r$n% a%ree-ent $n tp ,$ne an! tt- ,$ne

re/en"e. Ter- *heet !#"-entat$n $* *$%ne! + pr-ter.

& – Thr"%h #-pan$e* pr)$t n"-er* an! tta, *a,e*.

C – A,, the -$,e*tne* are nte! !n $n *hareh,!er;* a%ree-ent.

Interpretat$n The ,an!-ar'* are !e#$!e! + the VCF* an! Pr-ter !"r$n%

*$%n$n% ) a%ree-ent eteen the-.

59 hat are the -a=r tren!* $n VCF $n!"*tr+

A – Late*t tren! $* $ntere*t $n &$te#h *e#tr.

& – Up#-$n% *e#tr* ,$'e L%$*t$#*0 &PO0 F$nan#$a, Ser/$#e*0 Rea, E*tate.

C – A,, "p#-$n% *e#tr* e*pe#$a,,+ Tran*prt an! L%$*t$#*.

Interpretat$n The tren!* $n VCF* $n!"*tr+ !epen!* "pn t+pe ) )$r-*0 a* a,, )

the- ha/e $ntere*t* $n !$))erent *e#tr* )r )$nan#$n%.

69 hat #-pan$e* $n VCF -$%ht -a'e $ntere*t$n% $n/e*t-ent*.

A Depen!* "pn the *e#tr h$#h $* -$n% at that t$-e.

& – Sa-e a* a/e *a$! *e#tr*.

C – The e*t *e#tr $n t!a+;* *#enar$ $* IT *e#tr h$#h $,, e a#'ne )r

e#n-+.

Interpretat$n The #-pan$e* the-*e,/e* *h* a* $ntere*te! $n/e*t$n% *e#tr* t

VCF* + the$r per)r-an#e.

K9 B ,n% !e* $t ta'e t -a'e $n/e*t-ent r part$#$pat$n !e#$*$n

A – Ta'en a)ter a ,n% pr#e!"re ) $n/e*t$%at$n %et* /er )r- 6J ee'*.

& – It ta'e* 1 !a+* *-et$-e* an! a,* %et etent "p t 34 -nth*.

C – Len%th+ pr#e** a* $n/e*t$%at$n a"t pr-ter $* !ne. Then t $t ta'e* 35

-nth*.

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Interpretat$n T$-e ta'en + VCF* )r $n/e*t-ent !e#$*$n $* )r- 1 !a+* t$,, 3

4 -nth*. It a,* *-et$-e etent* t$,, 6 -nth*.

J9 Cr$t$#a, )eat"re* ) an a%ree-ent eteen VCF an! Pr-ter.

A – E$t pt$n*0 R$%ht t app$nt a &OD0 Interna, A"!$tr0 Pr=e#t*. E/en -a$n

*tep* ta'en + pr-ter *h",! e #n*",te! + VCF.

& – L$"$!$t+ e/ent0 *eat $n &OD0 ($nr$t+ prte#t$n r$%ht*0 $% !e#$*$n* t e

#n*",te!.

C – R$%ht* an! O,$%at$n* ) Pr-ter0 &ar! *eat0 R$%ht* t *ee #--$ttee0

Vet R$%ht.

Interpretat$n The -*t #r$t$#a, )eat"re* are *e,e#t$n% e$t pt$n*0 r$%ht* an!

,$%at$n* ) /ent"re #ap$ta,$*t*0 an! -a=r !e#$*$n* *h",! e #n*",te! $th

VCF.

>9 E$t p,$#$e* ),,e! + VCF*.

A IPO0 Se,,$n% *ta'e t 3r! part+0 Pr-ter;* "+a#' )r- VCF0 Dra%a,n% G

Ta%a,n%.

& Se,,$n% t *trate%$#0 &,#' !ea,0 IPO.

C IPO0 Pr-ter;* "+a#'0 Se,,$n% *ta'e0 C-$nat$n ) pr-ter;* "+a#'

an! *e,,$n% *ta'e.

Interpretat$n There are 3 a*$# e$t pt$n* een ),,e! + VCF* a,, /er the

r,!.

19 R$*' ana,+*$*.

A – R$*' !epen!* "pn t+pe ) #-pan+0 -ar'et0 e$t r$*'0 prper $n/e*t-ent

!ne r nt0 #",t"ra, r$*'0 #-pet$t$n.

& – I) /a,"at$n !e* nt %r a* per epe#tat$n then "*$ne** p,an )a$,*.

C – S#enar$ "$,!$n%. R$*' $n ter-* ) pr-ter0 re/en"e0 #*t 8a* perat$n%

epen*e*9.

E/en n ptent$a, ) pr-ter.

Interpretat$n The r$*' ana,+*$* /ar$e* a* per !epen!$n% n the *$t"at$n.

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Nte@ A* per the an*er* %$/en )r the ),,$n% "e*t$n*0 A pre*ent* SID&I0 &

pre*ent* M( E"$t+ F"n! an! C – IDFC E"$t+ F"n!*. Interpretat$n $* *hrt

#n#,"*$n ) a,, an*er*.

Cn#,"*$n@

Ear,$er pattern* ) %rth r )a$,"re $n /ent"re #ap$ta, $n!"*tr$e* $n ther #"ntr$e* an!

re%$n* $n!$#ate that the e/,"t$n ) /ent"re #ap$ta, *ee-* t e e$ther entr+ $nt a

*e,) re$n)r#$n% *p$ra,0 *"#h a* ##"rre! $n S$,$#n Va,,e+ an! I*rae,0 r %rth an!

*ta%nat$n0 a* ##"rre! $n ($nne*ta $n the 1>J* r the Un$te! $n%!- "nt$,

re#ent,+. $/en In!$a;* $*h t !e/e,p a h$%hte#hn,%+ $n!"*tr+ )"n!e! + /ent"re

#ap$ta,0 $t $* ne#e**ar+ t 'eep $-pr/$n% the en/$rn-ent + *$-p,$)+$n% the p,$#+

an! re%",atr+ *tr"#t"re 8$n#,"!$n% e,$-$nat$n% re%",at$n* that ! nt per)r-

ne#e**ar+ )"n#t$n* *"#h a* #n*"-er prte#t$n9.

The r,! &an'0 $th $t* a%en!a ) !e#rea*$n% %/ern-ent re%",at$n0 )"n!e! the

#reat$n ) the )$r*t /ent"re #ap$ta, )"n!*. Th"%h the*e )"n!* eper$en#e! ,$tt,e

*"##e**0 the+ ere the e%$nn$n%* ) a pr#e** ) ,e%$t$-$t$<$n% /ent"re $n/e*t$n% an!

the+ ere a tra$n$n% %r"n! )r /ent"re #ap$ta,$*t* h ,ater e*ta,$*he! pr$/ate

/ent"re #ap$ta, )"n!*. It $* "n,$'e,+ that the /ent"re #ap$ta, $n!"*tr+ #",! ha/e een

*"##e**)", $th"t the !e/e,p-ent ) the *)tare $n!"*tr+ an! a %enera,

,$era,$<at$n ) the e#n-+. O) #"r*e0 th$* $* nt ent$re,+ *"rpr$*$n%0 e#a"*e an

$n*t$t"t$n a* #-p,$#ate! a* /ent"re #ap$ta, #",! nt e-er%e $th"t a -$n$-a,,+

*"pprt$/e en/$rn-ent. Th$* en/$rn-ent th per-$tte! the e/,"t$n ) the /ent"re

#ap$ta, $n!"*tr+ an! *$-",tane"*,+ a,,e! $t t e%$n #han%$n% that en/$rn-ent an!

$n$t$at$n% a #e/,"t$nar+ !+na-$# $th ther $n*t$t"t$n*.

In!$a *t$,, re-a$n* a !$))$#",t en/$rn-ent )r /ent"re #ap$ta,. E/en $n 26 the In!$an

%/ern-ent re-a$n* "rea"#rat$# an! h$%h,+ re%",ate!. T en#"ra%e the %rth )

/ent"re #ap$ta, $,, re"$re )"rther a#t$n0 an! $t $* ,$'e,+ that the %/ern-ent $,,

#nt$n"e an! e/en a##e,erate $t* e))rt* t en#"ra%e /ent"re #ap$ta, $n/e*t$n%. The

r,e ) the %/ern-ent #annt e a/$!e!@ $t -"*t a!!re** ta0 re%",atr+0 ,e%a,0 an!

#"rren#+ e#han%e p,$#$e*0 *$n#e -an+ ) the*e a))e#t th /ent"re #ap$ta, )$r-* an!

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the #-pan$e* that the+ )$nan#e. (re -e#han$*-* nee! t e !e/e,pe! t re!"#e

r$*' $) )"n!* )r /ent"re #ap$ta, -"*t #-e )r- p",$#,+ he,! )$nan#$a, $n*t$t"t$n*

-ana%e! + h$%h,+ r$*'a/er*e -ana%er*. In *hrt0 VCF $* net en%$ne )r

e#n-$#a, %rth )r a,, #"ntr$e* $n the r,!.

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S"%%e*t$n* )r %rth ) VCF@

Vent"re #ap$ta, $n!"*tr+ $* at the ta'e )) *ta%e $n In!$a. It #an p,a+ a #ata,+t$# r,e $n

the !e/e,p-ent ) entreprene"r*h$p *'$,, that re-a$n* "nep,$te! a-n% the +"n%

an! ener%et$# te#hn#rat* an! ther pr)e**$na,,+ "a,$)$e! ta,ent*. It #an he,p

pr-te ne te#hn,%+ an! h$te#h $n!"*tr$e*0 h$#h $n/,/e h$%h r$*' "t pr-$*e*

attra#t$/e rate ) ret"rn. In r!er t en*"re *"##e** ) /ent"re #ap$ta, $n In!$a0 the

),,$n% *"%%e*t$n* are ))ere!@

8$9 Ee-pt$n7Cn#e**$n )r Cap$ta, a$n*@

Cap$ta, %a$n* ,a repre*ent* a h"r!,e t the *"##e** ) /ent"re #ap$ta, )$nan#$n%. The

earn$n%* ) the )"n!* !epen! pr$-ar$,+ n the appre#$at$n $n *t#' /a,"e*. F"rther0

the #ap$ta, %a$n* -a+ ar$*e n,+ a)ter 3 t 4 +ear*0 ) $n/e*t-ent an! that the pr=e#t*0

e$n% $n ne r$*'+ area*0 -a+ nt e/en *"##ee!. Cap$ta, %a$n* + #rprate !$e* $n

In!$a are tae! at a -"#h $n/e*t-ent r$*' an! ,n% %e*tat$n per$! th$* $* a !eterrent

t the !e/e,p-ent ) VCF*.

The ene)$t ) the #ap$ta, %a$n*0 "n!er *e#t$n 4J ) the A#t $* nt *$%n$)$#ant. Ben#e0

$t ",! e a!/$*a,e that a,, ,n% ter- #ap$ta, %a$n* earne! + VCC* *h",! e

ee-pte! )r- ta r *"=e#t t #n#e**$na, ),at rate. F"rther0 #ap$ta, %a$n*

re$n/e*te! $n ne /ent"re *h",! a,* e ee-pte! )r- ta. Se#t$n 528E9 ) the

A#t *h",! e a-en!e! t %$/e e))e#t t th$*.

8$$9 De/e,p-ent ) St#' (ar'et*@

"$!e,$ne* $**"e! + )$nan#e -$n$*tr+ pr/$!e* )r the *a,e ) $n/e*t-ent + a+ )

p",$# $**"e at the pr$#e t e !e#$!e! n the a*$* ) ' /a,"e an! earn$n% #apa#$t+.

Be/er0 th$* -eth! -a+ nt %$/e the e*t a/a$,a,e pr$#e* t /ent"re )"n! a* $t $,,

nt e a,e t #n*$!er )"t"re %rth ptent$a, ) the $n/e*te! #-pan+.

One ) the -a=r )a#tr* h$#h #ntr$"te! t the *"##e** ) /ent"re )"n!* $n thee*t $* !e/e,p-ent ) *e#n!ar+ an! tert$ar+ *t#' -ar'et*. The*e -ar'et* ! ntha/e ,$*t$n%

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re"$re-ent* an! are *prea! /er a,, $-prtant #$t$e* an! tn* $n the #"ntr+. The*e

*t#' -ar'et* pr/$!e e#e,,ent !$*$n/e*t-ent* -e#han$*- )r /ent"re )"n!*. In

In!$a0 he/er0 *t#' -ar'et $* nt !e/e,pe! e+n! a )e $-prtant #$t$e*.

S"##e** ) /ent"re #ap$ta, )"n! !epen!* /er+ -"#h "pn pr)$ta,e !$*$n/e*t-ent*

) the #ap$ta, #ntr$"te! + $t. In US an! U *e#n!ar+ an! tert$ar+ -ar'et* he,pe!

$n a##-p,$*h$n% the a/e. Be/er0 $n In!$a0 pr-t$n ) *"#h -a'er $* nt

)ea*$,e $n the pre/a$,$n% #$r#"-*tan#e* a* *"#h ,a$**e< )a$re p,$#+ -a+ atta#'

per*n* $th ",ter$r -t$/e* $n the "*$ne** t the !eter-ent ) %enera, p",$#.

Be/er0 *t#' -ar'et perat$n -a+ e *tarte! at -an + -re $% #$t$e* here0 *a+0

the n"-er ) *t#' e#han%e* #an e $n#rea*e! t 5. F"rther0 per-$**$n t tran*a#t

$n "n,$*te! *e#"r$t$e* $th *"$ta,e re%",at$n $,, en*"re )$r*than! #nta#t eteen

/ent"re )"n! an! $n/e*tr*.

8$$$9 F$*#a, In#ent$/e*@

F$*#a, $n#ent$/e* -a+ e %$/en $n the )r- ) ,er$n% the rate ) $n#-e ta. It #an

e a##-p,$*he! +@

8$9 App,$#at$n ) pr/$*$n* app,$#a,e t nn#rprate ent$t$e* )r ta$n% ,n% ter-

#ap$ta, %a$n*.

8$$9 An a,,an#e t )"n!* *$-$,ar t *e#t$n JCC ) In#-e Ta A#t0 *a+ 2

per#ent ) the $n/e*t-ent $n ne /ent"re h$#h #an e a,,e! a* !e!"#t$n )r- the

$n#-e.

8$/9 Pr$/ate Se#tr Part$#$pat$n

In US an! U here the e#n-+ $* !-$nate! + pr$/ate *e#tr0 !e/e,p-ent )

/ent"re )"n! -ar'et a* p**$,e !"e t /er+ *$%n$)$#ant r,e p,a+e! + pr$/ate *e#tr

h$#h $* )ten $,,$n% t p"t -ne+ $n h$%h r$*' "*$ne** pr/$!e! h$%her ret"rn* are

epe#te!. The %"$!e,$ne* + )$nan#e -$n$*tr+ pr/$!e that nn $n*t$t"t$na,

pr-ter;* *hare $n the #ap$ta, ) /ent"re )"n! #annt e#ee! 2 per#ent ) tta,

#ap$ta, )"rther the+ #annt e the *$n%,e ,ar%e*t e"$t+ h,!er*. The pr$/ate *e#tr0

e#a"*e ) th$* pr/$*$n0 -a+ nt ,$'e t pr-te /ent"re )"n! "*$ne**.

Pr-t$n ) /ent"re )"n!* + pr$/ate *e#tr0 $n a!!$t$n t p",$# )$nan#$a,

$n*t$t"t$n an! an'*0 $* re#--en!e! a*@

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Pr$/ate *e#tr $* $n a!/anta%e"* p*$t$n a* #-pare! t )$nan#$a, $n*t$t"t$n* an!

an'* t pr/$!e -ana%er$a, *"pprt t ne /ent"re* a* ,ea!$n% $n!"*tr$a, h"*e ha/e

a p, ) eper$en#e! pr)e**$na, -ana%er* $n a,, )$e,!* ) -ana%e-ent /$<.

-ar'et$n%0 pr!"#t$n an! )$nan#e. The ,ea!$n% "*$ne** h"*e* $,, e a,e t ra$*e

)"n!* )r- the $n/e*t$n% p",$# $th re,at$/e ea*e.

8/9 Re/$e the E$*t$n% La*

T!a+;* nee! $* t re/$e the #n*tra$n* "n!er /ar$"* ,a* ) the #"ntr+ an! re*,/e

the $**"e that #",! #-e $n the a+ ) %rth ) the $nn/at$/e -!e ) )$nan#$n%.

S"$ta,e ee-pt$n *h",! e %$/en )r- Se#t$n 43 A ) the #-pan$e* A#t t

/ent"re #ap$ta, )$nan#e #-pan$e* * that the+ are nt re"$re! t #-p,+ $th

*e/era, pr/$*$n* ) the A#t app,$#a,e t p",$# ,$-$te! #-pan$e*.

A-en!-ent ) Se#t$n KK ) the C-pan$e* A#t $* re"$re! t ena,e the ne

/ent"re #ap$ta, #-pan$e* t "+ a#' the$r *hare* at the t$-e ) !$*$n/e*t-ent* +

VC F$nan#e C-pan$e*.

Ce$,$n% n $nterperate ,an* an! $n/e*t-ent a* *pe#$)$e! $n Se#t$n 3K an! 3K2 )

the #-pan$e* A#t *h",! e re,ae! $n #a*e ) VC F$nan#e C-pan$e* an! Vent"re

Cap$ta, C-pan$e* t ena,e the- t $n/e*t *"$ta,e $n ne,+ pr-te! #-pan$e*.

The n,+ $n/e*t-ent a/a$,a,e t the VC F$nan#e #-pan+ )r $n/e*t-ent $* e"$t+

*hare*. Th$* re*tr$#t$n *h",! e re,ae! * that VC F$nan#e C-pan+ #an )$nan#e

thr"%h pre)erent$a, $**"e* an! #n!$t$na, ,an*. The *#pe ) VC *h",! nt n,+ e

#n)$r-e! t *tart "p )$nan#e "t a,* e ra!ene! t !e/e,p-ent )$nan#e0

epan*$n an! %rth0 "+"t*0 -er%er* an! a-a,%a-at$n. The re*tr$#t$n n

$n/e*t-ent ) J ) the ent$re )"n!* $th$n a per$! ) 3 +ear* *h",! e re-/e!.

8/$9 L$-$te! Partner*h$p

The Pra#t$#e ) the ,$-$te! partner*h$p a* $n /%"e $n U *h",! e per-$tte! $n r!er

t pr-te $nte%rat$n ) =e#t eteen the -ana%er* an! #ntr$"tr* )r the

*"##e** ) /ent"re #ap$ta, pr=e#t*.

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Chapter – J

Anne"re

J.1 SE&I "$!e,$ne* an! Re%",at$n*

J.2 Cert$)$#ate ) Re%$*trat$n

J.3 Ta A*pe#t*

J.4 In/e*t-ent #n!$t$n* an! re*tr$#t$n*

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Anne"re

J.1 SE&I "$!e,$ne* an! Re%",at$n*@

In the a*en#e ) an r%an$*e! Vent"re Cap$ta, $n!"*tr+ t$,, a,-*t 1>>J0 $n!$/$!"a,

$n/e*tr* an! !e/e,p-ent )$nan#$a, $n*t$t"t$n* p,a+e! the r,e ) /ent"re #ap$ta,$*t*

$n In!$a. Entreprene"r* ha/e ,ar%e,+ !epen!e! "pn pr$/ate p,a#e-ent*0 p",$#

))er$n%* an! ,en!$n% + the )$nan#$a, $n*t$t"t$n*.

In 1>K3 a #--$ttee n De/e,p-ent ) S-a,, an! (e!$"- Enterpr$*e* h$%h,$%hte!

the nee! t )*ter /ent"re #ap$ta, a* a *"r#e ) )"n!$n% ne entreprene"r* an!

te#hn,%+. Therea)ter *-e p",$# *e#tr )"n!* ere *et "p "t the a#t$/$t+ )

/ent"re #ap$ta, !$! nt %ather --ent"- a* the thr"*t a* n h$%hte#hn,%+

pr=e#t* )"n!e! n a p"re,+ )$nan#$a, rather than a h,$*t$# a*$*.

Later0 a *t"!+ a* "n!erta'en + the r,! &an' t ea-$ne the p**$$,$t+ )

!e/e,p$n% Vent"re Cap$ta, $n the pr$/ate *e#tr0 a*e! n h$#h the /ern-ent )

In!$a t' a p,$#+ $n$t$at$/e an! ann"n#e! %"$!e,$ne* )r Vent"re Cap$ta, F"n!*

8VCF*9 $n In!$a $n 1>JJ.

Be/er0 the*e %"$!e,$ne* re*tr$#te! *ett$n% "p ) VCF* + the an'* r the )$nan#$a,

$n*t$t"t$n* n,+. Therea)ter0 the /ern-ent ) In!$a $**"e! %"$!e,$ne* $n Septe-er

1>>5 )r /er*ea* $n/e*t-ent $n Vent"re Cap$ta, $n In!$a. Fr taee-pt$n

p"rp*e*0 %"$!e,$ne* ere a,* $**"e! + the Centra, &ar! ) D$re#t Tae* 8C&DT9

an! the $n/e*t-ent* an! ), ) )re$%n #"rren#+ $nt an! "t ) In!$a ha/e een

%/erne! + the Re*er/e &an' ) In!$a* 8R&I9 re"$re-ent*. F"rther0 a* a part ) $t*

-an!ate t re%",ate an! t !e/e,p the In!$an #ap$ta, -ar'et*0 the Se#"r$t$e* an!

E#han%e &ar! ) In!$a 8SE&I9 )ra-e! the SE&I 8Vent"re Cap$ta, F"n!*9

Re%",at$n*0 1>>6. The*e %"$!e,$ne* ere )"rther a-en!e! $n Apr 2 $th the

=e#t$/e ) )"e,,$n% the %rth ) Vent"re Cap$ta, a#t$/$t$e* $n In!$a.

In the ,ate 1>>*0 the In!$an %/ern-ent e#a-e aare ) the ptent$a, ene)$t* ) a

hea,th+ /ent"re #ap$ta, *e#tr. Th"* $n 1>>> a n"-er ) ne re%",at$n* ere

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pr-",%ate!. S-e ) the -*t *$%n$)$#ant ) the*e re,ate! t ,$era,$<$n% the

re%",at$n* re%ar!$n% the a$,$t+ ) /ar$"* )$nan#$a, $n*t$t"t$n* t $n/e*t $n /ent"re

#ap$ta,. Perhap* the -*t $-prtant ) the*e ent $nt e))e#t $n Apr$, 1>>> an!

a,,e! an'* t $n/e*t "p t 5 per#ent ) the$r ne )"n!* ann"a,,+ $n /ent"re #ap$ta,.

The -a$n *tat"te* %/ern$n% /ent"re #ap$ta, $n In!$a $n#,"!e! the SE&I;* 1>>6

Vent"re Cap$ta, Re%",at$n*0 the 1>>5 "$!e,$ne* )r O/er*ea* Vent"re Cap$ta,

In/e*t-ent* $**"e! + the Depart-ent ) E#n-$# A))a$r* $n the ($n$*tr+ )

F$nan#e0 an! the Centra, &ar! ) D$re#t Tae*; 8C&DT9 1>>5 "$!e,$ne* )r Vent"re

Cap$ta, C-pan$e* 8,ater -!$)$e! $n 1>>>9. In ear,+ 20 !-e*t$# /ent"re

#ap$ta,$*t* ere re%",ate! + three %/ern-ent !$e*@ the Se#"r$t$e* an! E#han%e

&ar! ) In!$a 8SE&I90 the ($n$*tr+ ) F$nan#e0 an! the C&DT. Fr )re$%n /ent"re

#ap$ta, )$r-* there a* e/en %reater re%",at$n $n the )r- ) the Fre$%n In/e*t-ent

Pr-t$n &ar! 8FIP&90 h$#h appr/e* e/er+ $n/e*t-ent0 an! the Re*er/e &an' )

In!$a 8R&I90 h$#h appr/e* e/er+ !$*$n/e*t-ent.

S$n#e SE&I $* re*pn*$,e )r /era,, re%",at$n an! re%$*trat$n ) VCF0 -",t$p,e

re%",atr+ re"$re-ent* *h",! e har-n$<e! an! #n*,$!ate! $th$n the )ra-er'

) SE&I Re%",at$n* t )a#$,$tate "n$)r-0 ha**,e)ree0 *$n%,e $n! #,earan#e.

Re%$*trat$n ) a /ent"re #ap$ta, )"n!

App,$#ant *h",! ),, the pr#e!"re %$/en e, * a* t epe!$te the re%$*trat$n

pr#e**. Be/er0 SE&I $,, a,* %"$!e the app,$#ant *tep + *tep a)ter %ett$n%

app,$#at$n )r re%$*trat$n a* a /ent"re #ap$ta, )"n!. Nr-a,,+0 a,, rep,$e* are *ent

$th$n 21 r'$n% !a+* )r- the !ate ) %ett$n% ea#h #--"n$#at$n )r- the

app,$#ant !"r$n% the pr#e** ) re%$*trat$n. Th"*0 the tta, t$-e per$! )r

re%$*trat$n !epen!* n h )a*t the re"$re-ent* are #-p$,e! $th + the app,$#ant.

(a$n re"$re-ent* "n!er SE&I 8Vent"re Cap$ta, F"n!*9 Re%",at$n*0 1>>6@

The ),,$n% are the e,$%$$,$t+ #r$ter$a )r %rant ) a #ert$)$#ate ) re%$*trat$n a* per

re%",at$n 4 ) SE&I 8Vent"re Cap$ta, F"n!*9 Re%",at$n* 1>>6. Fr the p"rp*e )

%rant ) a #ert$)$#ate ) re%$*trat$n0 the app,$#ant ha* t )",)$, the ),,$n%0 na-e,+@

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8a9 I) the app,$#at$n $* -a!e + a #-pan+0

8$9 (e-ran!"- ) a**#$at$n ha* a* $t* -a$n =e#t$/e0 the #arr+$n% n )

the a#t$/$t+ ) a /ent"re #ap$ta, )"n!

8$$9 It $* prh$$te! + $t* -e-ran!"- an! art$#,e* ) a**#$at$n )r-

-a'$n% an $n/$tat$n t the p",$# t *"*#r$e t $t* *e#"r$t$e*

8$$$9 It* !$re#tr r pr$n#$pa, ))$#er r e-p,+ee $* nt $n/,/e! $n an+

,$t$%at$n #nne#te! $th the *e#"r$t$e* -ar'et h$#h -a+ ha/e an

a!/er*e ear$n% n the "*$ne** ) the app,$#ant

8$/9 It* !$re#tr0 pr$n#$pa, ))$#er r e-p,+ee ha* nt at an+ t$-e een

#n/$#te! ) an+ ))en#e $n/,/$n% -ra, t"rp$t"!e r an+ e#n-$#

))en#e.

8/9 It $* a )$t an! prper per*n.

89 I) the app,$#at$n $* -a!e + a tr"*t

8$9 The $n*tr"-ent ) tr"*t $* $n the )r- ) a !ee! an! ha* een !",+

re%$*tere! "n!er the pr/$*$n* ) the In!$an Re%$*trat$n A#t0 1>J 816

) 1>J9

8$$9 The -a$n =e#t ) the tr"*t $* t #arr+ n the a#t$/$t+ ) a /ent"re #ap$ta,

)"n!

8$$$9 The !$re#tr* ) $t* tr"*tee #-pan+0 $) an+0 r an+ tr"*tee $* nt

$n/,/e! $n an+ ,$t$%at$n #nne#te! $th the *e#"r$t$e* -ar'et h$#h

-a+ ha/e an a!/er*e ear$n% n the "*$ne** ) the app,$#ant

8$/9 The !$re#tr* ) $t* tr"*tee #-pan+0 $) an+0 r a tr"*tee ha* nt at an+

t$-e0 een #n/$#te! ) an+ ))en#e $n/,/$n% -ra, t"rp$t"!e r ) an+

e#n-$# ))en#e

8/9 The app,$#ant $* a )$t an! prper per*n.

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8#9 I) the app,$#at$n $* -a!e + a !+ #rprate

8$9 It $* *et "p r e*ta,$*he! "n!er the ,a* ) the Centra, r State

Le%$*,at"re.

8$$9 The app,$#ant $* per-$tte! t #arr+ n the a#t$/$t$e* ) a /ent"re #ap$ta,

)"n!.

8$$$9

8$/9

The app,$#ant $* a )$t an! prper per*n.

The !$re#tr* r the tr"*tee*0 a* the #a*e -a+ e0 ) *"#h !+ #rprate

ha/e nt een #n/$#te! ) an+ ))en#e $n/,/$n% -ra, t"rp$t"!e r )

an+ e#n-$# ))en#e.

8/9 The !$re#tr* r the tr"*tee*0 a* the #a*e -a+ e0 ) *"#h !+ #rprate0

$) an+0 $* nt $n/,/e! $n an+ ,$t$%at$n #nne#te! $th the *e#"r$t$e*

-ar'et h$#h -a+ ha/e an a!/er*e ear$n% n the "*$ne** ) the

app,$#ant.

8!9 The app,$#ant ha* nt een re)"*e! a #ert$)$#ate + the &ar! r $t* #ert$)$#ate ha*

nt een *"*pen!e! "n!er re%",at$n 3 r #an#e,,e! "n!er re%",at$n 31.

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App,$#at$n )r Re%$*trat$n@

An app,$#ant *h",! app,+ )r re%$*trat$n $n )r- a pre*#r$e! "n!er F$r*t S#he!",e )

SE&I 8Vent"re Cap$ta, F"n!*9 Re%",at$n* 1>>6 a,n% $th re"$*$te )ee*. A,,

!#"-ent* *h",! e en#,*e! a* *pe#$)$e! $n the )r-.

A!!$t$na, $n)r-at$n@

1. A #-p,ete ,$*t ) +"r a**#$ate #-pan$e* re%$*tere! $th SE&I0 an! a,*

$n!$#ate the #apa#$t+ $n h$#h the+ are re%$*tere! a,n% $th the SE&I

Re%$*trat$n n"-er

2. State hether the app,$#ant $* re%$*tere! $th SE&I $n an+ #apa#$t+.

3. A #-p,ete ,$*t ) +"r %r"p #-pan$e* re%$*tere! $th SE&I0 an! a,* $n!$#ate

the #apa#$t+ $n h$#h the+ are re%$*tere! $th SE&I a,n% $th the$r SE&I

Re%$*trat$n n"-er.

4. hether the app,$#ant r the $nter-e!$ar+0 a* the #a*e -a+ e r $t* h,e t$-e

!$re#tr r -ana%$n% partner ha* een #n/$#te! + a C"rt )r an+ ))en#e

$n/,/$n% -ra, t"rp$t"!e0 e#n-$# ))en#e0 *e#"r$t$e* ,a* r )ra"!

5. hether an+ $n!$n% "p r!er* ha/e een pa**e! a%a$n*t the app,$#ant r the

$nter-e!$ar+.

6. hether an+ r!er* "n!er the In*,/en#+ A#t ha/e een pa**e! a%a$n*t the

app,$#ant r an+ ) $t* !$re#tr*0 r per*n $n -ana%e-ent an! ha/e nt een

!$*#har%e!.

K. hether an+ r!er re*tra$n$n% prh$$t$n% r !earr$n% the app,$#ant r $t* h,e

t$-e !$re#tr )r- !ea,$n% $n *e#"r$t$e* $n the #ap$ta, -ar'et ha* een pa**e! +

SE&I r an+ ther re%",atr+ a"thr$t+ an! a per$! ) three +ear* )r- the !ate

) the ep$r+ ) the per$! *pe#$)$e! $n the r!er ha* nt e,ap*e!

J. hether an+ r!er #an#e,$n% the #ert$)$#ate ) re%$*trat$n ) the app,$#ant n the

%r"n! ) $t* $n!",%$n% $n $n*$!er tra!$n%0 )ra"!",ent an! "n)a$r tra!e pra#t$#e* r

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-ar'et -an$p",at$n ha* een pa**e! + SE&I an! a per$! ) three +ear* )r-

the !ate ) the r!er ha* nt e,ap*e!

>. hether an+ r!er0 $th!ra$n% r re)"*$n% t %rant an+ ,$#en*e7 appr/a, t the

app,$#ant r $t* h,e t$-e !$re#tr h$#h ha* a ear$n% n the #ap$ta, -ar'et0 ha*

een pa**e! + SE&I r an+ ther re%",atr+ a"thr$t+ an! a per$! ) three +ear*

)r- the !ate ) the r!er ha* nt e,ap*e!.

1. 8a9 Deta$,* ) re%$*trat$n ) +"r #-pan+7a**#$ate7%r"p #-pan$e* 8t e %$/en

*eparate,+90 h$#h are re%$*tere!7 re"$re! t e re%$*tere! $th Re*er/e &an' ) In!$a

8R&I9 a* a &an'$n% #-pan+ r Nn &an'$n% F$nan#e C-pan+ r $n an+ ther #apa#$t+

an! a!!re**8e*9 ) #n#erne! ran#h ))$#e8*9 ) R&I.

89 Deta$,* ) !$*#$p,$nar+ a#t$n ta'en + R&I a%a$n*t +" r an+ ) +"r

%r"p7a**#$ate #-pan$e*. P,ea*e a,* $n)r- "* $n #a*e there $* an+ !e)a",t $n

repa+-ent ) !ep*$t* + +" r an+ ) +"r %r"p 7 a**#$ate #-pan$e*.

App,$#ant #an *"-$t :n =e#t$n #ert$)$#ate; )r- R&I )r %ett$n% re%$*tere! $th

SE&I0 t epe!$te the re%$*trat$n pr#e**.

Other D#"-ent* t e *"-$tte! t SE&I

19 (e-ran!"- an! Art$#,e* ) A**#$at$n ) app,$#ant #-pan+0 ee#"te!

#p+ ) tr"*t !ee! $) the )"n! $* e$n% *et "p a* a tr"*t an! -a$n =e#t$/e )

#n*t$t"t$n $n #a*e ) !+ #rprate.

29 Ee#"te! #p+ ) In/e*t-ent (ana%e-ent A%ree-ent0 $) app,$#a,e.

39 D$*#,*e $n !eta$, the $n/e*t-ent *trate%+ a* re"$re! "n!er re%",at$n 128a9 )

the SE&I 8Vent"re Cap$ta, F"n!*9 Re%",at$n*0 1>>6. A,* *tate the tar%et *$<e

) the )"n! a,n% $th the pr)$,e ) the $n/e*tr* ) the )"n!.

49 An "n!erta'$n% t the e))e#t that the )"n! $,, nt enter $nt an+ /ent"re#ap$ta, a#t$/$t+ $) $t )a$,* t ra$*e a #--$t-ent ) at ,ea*t R*. )$/e #rre a*

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re"$re! "n!er Re%",at$n 11839 ) SE&I 8Vent"re Cap$ta, F"n!*9

Re%",at$n*0 1>>6.

59 Cp$e* ) ,etter* ) #--$t-ent )r- $n/e*tr* $n *"pprt ) the tar%et

a-"nt prp*e! t e ra$*e! + the )"n!.

69 Un!erta'$n% that the /ent"re #ap$ta, )"n! $,, nt -a'e $n/e*t-ent $n an+ area

,$*te! "n!er Th$r! S#he!",e t SE&I 8Vent"re Cap$ta, F"n!*9 Re%",at$n*0

1>>6.

K9 Vent"re Cap$ta, F"n! *ha,, !$*#,*e the !"rat$n7 ,$)e #+#,e ) the )"n!.

rant ) Cert$)$#ate ) Re%$*trat$n

On#e a,, a/e re"$re-ent* ha/e een #-p,$e! $th an! re"$*$te )ee* a* per

Se#n! S#he!",e t Re%",at$n* ha/e een pa$!0 SE&I $,, %rant #ert$)$#at$n )

re%$*trat$n a* a /ent"re #ap$ta, )"n!.

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J.2 Cert$)$#ate ) Re%$*trat$n

26Cert$)$#ate ) re%$*trat$n a* /ent"re #ap$ta, )"n!

I. In eer#$*e ) the per* #n)erre! + *"*e#t$n 819 ) *e#t$n 12 ) the *e#"r$t$e*

An! e#han%e &ar! ) In!$a A#t0 1>>20 815 ) 1>>29 rea! $th the re%",at$n -a!e

There "n!er0 the ar! here+ %rant* a #ert$)$#ate ) re%$*trat$n t

a* a /ent"re #ap$ta, )"n! *"=e#t t the

#n!$t$n* *pe#$)$e! $n the A#t an! $n the re%",at$n* -a!e there "n!er.

II. The Re%$*trat$n N"-er ) the /ent"re #ap$ta, )"n! $* IN7VC7 7

Date@

P,a#e@ (U(&AI

&+ r!er

S!7

Fr an! n eha,) )

Se#"r$t$e* an! E#han%e &ar! ) In!$a

In#-e Ta ene)$t*

In r!er t en#"ra%e the !e/e,p-ent ) /ent"re #ap$ta, )"n!*0 the $n#-e Ta A#t0

1>61 ee-pt* the $n#-e ) a /ent"re #ap$ta, )"n! )r- In#-e Ta.

In#-e ) a /ent"re #ap$ta, )"n! W*e#t$n 1823F&9X 8n an! )r- F$nan#$a, ear

1>>>29

An+ $n#-e ) a /ent"re #ap$ta, )"n! 8VCF9 r a /ent"re #ap$ta, #-pan+ 8VCC9

*et "p t ra$*e )"n!* )r $n/e*t-ent $n a /ent"re #ap$ta, "n!erta'$n% 8VCU9 $*

ee-pt.

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VCC -ean* a #-pan+ h$#h ha* een %rante! a #ert$)$#ate ) re%$*trat$n + SE&I

an! h$#h )",)$,* the #n!$t$n* ,a$! !n + SE&I $th the appr/a, ) the Centra,

/ern-ent.

VCU -ean* a !-e*t$# #-pan+ h*e *hare are nt ,$*te! $n a re#%n$<e! *t#'

e#han%e $n In!$a an! h$#h $* en%a%e! $n the "*$ne** )r pr!"#$n% *er/$#e*0

pr!"#t$n r -an")a#t"re ) an art$#,e r th$n% "t !e* nt $n#,"!e a#t$/$t$e* r

*e#tr* h$#h are *pe#$)$e! + SE&I $th a appr/a, ) the Centra, /ern-ent.

J.3. Ta A*pe#t*@

VCF* ha/e een pr/$!e! #-p,ete $n#-e ta re,aat$n 8M",+ 1>>59 an! ee-pt$n

)r- ,n%ter- #ap$ta, %a$n* ta a)ter the+ are ,$*te! n *t#' e#han%e*. Share* ha/e

t e he,! )r at ,ea*t 12 -nth* t en=+ ta ee-pt$n. A ,#'$n per$! ) three

+ear* $* he/er app,$#a,e )r "n,$*te! *hare*.

The F$nan#e A#t0 1>>5 pr/$!e! WSe#t$n 1 823 F9 ) the IT A#tX $n#-e ta

ee-pt$n n an+ $n#-e + a+ ) !$/$!en!* r ,n%ter- #ap$ta, %a$n* ) a

/ent"re #ap$ta, )"n! r a /ent"re #ap$ta, #-pan+ )r- $n/e*t-ent* -a!e + a+) e"$t+ *hare* $n a /ent"re prp*a,. T en=+ ta ee-pt$n the /ent"re #ap$ta,

#-pan+ ha* t ta$n appr/a, an! *at$*)+ pre*#r$e! #n!$t$n*. The Centra, &ar!

) D$re#t Tae* 8C&DT9 $**"e! %"$!e,$ne*0 n 1JK1>>5 *pe#$)+$n% that the

pre*#r$e! a"thr$t+ )r appr/a, )r ee-pt$n "n!er Se#t$n 1 823F9 ) In#-e

Ta A#t $* D$re#tr ) In#-e Ta 8Ee-pt$n9. The #n!$t$n* )r appr/a, are@

$t $* re%$*tere! $th the SE&I 8%"$!e,$ne* ) 13.2.1>>6 !$*#"**e! e,9

$t $n/e*t* J per#ent ) $t* tta, -n$e* + a#"$r$n% e"$t+ *hare* )

/ent"re #ap$ta, "n!erta'$n%*

$t $n/e*t J per#ent ) $t* tta, pa$!"p #ap$ta, $n a#"$r$n% e"$t+ *hare ) the

$t *ha,, nt $n/e*t -re than 2 per#ent 8&"!%et )r 1>>KJ ra$*e! $t )r- 5 t

/ent"re #ap$ta, "n!erta'$n%*

2 per#ent.9$t *ha,, nt $n/e*t -re than 4 per#ent $n the e"$t+ #ap$ta, ) ne

/ent"re "n!erta'$n%*

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$t *ha,, -a$nta$n '* ) a##"nt0 an! *"-$t a"!$te! a##"nt* t the

D$re#tr0 In#-e Ta 8Ee-pt$n9.

J.4. In/e*t-ent #n!$t$n* an! re*tr$#t$n*

A /ent"re #ap$ta, )"n! -a+ ra$*e -ne+ )r- an+ *"r#e0 hether In!$an0 )re$%n r

nn re*$!ent In!$an + a+ ) $**"e ) "n$t*. N /ent"re #ap$ta, )"n! *ha,, a##ept

an+ $n/e*t-ent )r- an+ $n/e*tr ,e** than R*500. Be/er th$* #n!$t$n $* nt

app,$#a,e t@

J.2.1

J.2.2

e-p,+ee* r the pr$n#$pa, ))$#er r !$re#tr* ) the

/ent"re #ap$ta, )"n! ha* een e*ta,$*he! a* a tr"*t

e-p,+ee* ) the )"n! -ana%er r a**et -ana%e-ent

#-pan+ )r the p"rp*e ) the *e re%",at$n*0 )"n!

ra$*e! -ean* a#t"a, -ne+ ra$*e! )r- $n/e*tr* )r

*"*#r$$n% t the *e#"r$t$e* ) the /ent"re #ap$ta, )"n!

an! $n#,"!e* -ne+ that $* ra$*e! )r- the a"thr ) the

tr"*t 8$n #a*e the /ent"re #ap$ta, )"n! ha* een

e*ta,$*he! a* a tr"*t9 "t !e* nt $n#,"!e the pa$! "p

#ap$ta, ) the tr"*tee #-pan+0 $) an+.

J.2.3 Ea#h *#he-e ,a"n#he! r )"n! *et "p + a /ent"re

#ap$ta, )"n! *ha,, ha/e )$r- #--$t-ent )r- the

$n/e*tr* )r #ntr$"t$n + the /ent"re #ap$ta, )"n!.

A,, $n/e*t-ent -a!e r t e -a!e + a /ent"re #ap$ta, )"n! *ha,, e *"=e#t t the

),,$n% #n!$t$n*0 na-e,+@

a. /ent"re #ap$ta, )"n! *ha,, !$*#,*e the $n/e*t-ent *trate%+ at

the t$-e ) app,$#at$n )r re%$*trat$n

. /ent"re #ap$ta, )"n! *ha,, nt $n/e*t -re than 25 #rp"* )

the )"n! $n ne /ent"re #ap$ta, "n!erta'$n%

*ha,, nt $n/e*t $n the a**#$ate! #-pan$e* an!

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!. /ent"re #ap$ta, )"n! *ha,, -a'e $n/e*t-ent $n the /ent"re #ap$ta, "n!erta'$n% a*

en"-erate! e,

8$9. at ,ea*t K5 ) the $n/e*t$,e )"n!* *ha,, e $n/e*te! $n "n,$*te! e"$t+ *hare* r

e"$t+ ,$n'e! $n*tr"-ent*. Be/er0 $) the /ent"re #ap$ta, "n! *ee'* a/a$, ) ene)$t*

"n!er the re,e/ant pr/$*$n* ) the In#-e Ta A#t app,$#a,e t a /ent"re #ap$ta,

)"n!0 $t *ha,, e re"$re! t !$*$n/e*t )r- *"#h $n/e*t-ent* $th$n a per$! ) ne

+ear )r- the Date n h$#h the *hare* ) the /ent"re #ap$ta, "n!erta'$n% are ,$*te!.

In a re#%n$<e! *t#' E#han%e.

8$$9. Nt -re than 25 ) the $n/e*t$,e )"n! -a+ e $n/e*te! + a+ )@

a. *"*#r$pt$n t $n$t$a, p",$# ))er ) a /ent"re #ap$ta,

"n!erta'$n% h*e *hare* are prp*e! e ,$*te! *"=e#t t

,#'$n per$! ) ne +ear

. !et r !et $n*tr"-ent ) a /ent"re #ap$ta, "n!erta'$n% $n

h$#h the /ent"re #ap$ta, )"n! ha* a,rea!+ -a!e an

$n/e*t-ent + a+ ) e"$t+.

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L$*t ) Vent"re Cap$ta, C-pan$e* $n In!$a @

1. 2th Cent"r+ F$nan#e Crprat$n L$-$te!Centre P$ntDr.A-e!'ar Ra!Pare,("-a$ 412

AI In/e*t-ent Crprat$n 8A*$a9 L$-$te!In!$a Repre*entat$/e O))$#e2634 Oer$ Ter*

Nar$-an P$nt

("-a$ 421

A#"$t+ Strate%$# F$nan#$a,* Pr$/ate L$-$te!14 Sant*h0 2n! ),r 242 La!+ Ma-*he!=$ Ra!("-a$ 42J

AIA Cap$ta, In!$a Pr$/ate L$-$te!>& Ban*a,a+a&ara'ha-a Ra!

Ne De,h$ 111A,,$an#e DLM Pr$/ate E"$t+ F"n!

44 7 45 Pre*t$%e Centre P$ntK E!ar! Ra!&an%a,re 5652

A,,$an#e Vent"re Cap$ta, A!/$*r* L$-$te!6K Rahe=a Cha-er*Free Pre** M"rna, Ra!0 Nar$-an P$nt("-a$ 421

APIDC Vent"re Cap$ta, L$-$te!112 &,#' A0 11th ),r

&a"'han E*tate0 &a*heera%hB+!eraa! 51

Canan' Vent"re Cap$ta, F"n! L$-$te!27F aree- Ter*0 11th ),r 1>75 1>76 C"nn$n%ha- Ra!&an%a,re 5652

Draper Internat$na, 8In!$a9 Pr$/ate L$-$te!V23 Pre*t$%e (er$!$an 1(.. Ra!&an%a,re 561

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E Cap$ta, Ser/$#e* In!$a L$-$te!AIFACS &"$,!$n%1 Ra)$ (ar%

Ne De,h$ 111

"=arat Vent"re F$nan#e L$-$te!Pre-#han! B"*e Annee0 1*t ),r &eh$n! Pp",ar B"*eA*hra- Ra!Ah-e!aa! 3J>

BS&C Pr$/ate E"$t+ (ana%e-ent (a"r$t$"* L$-$te!A*h'a E*tate0 3r! ),r 24 &ara'ha-a Ra!

Ne De,h$ 111

ICICI Se#"r$t$e* an! F$nan#e C-pan+ L$-$te!41744 Stran! Pa,a#e(.De*a$ (ar%C,aa("-a$ 45

ICICI Vent"re F"n!* (ana%e-entC-pan+ L$-$te! 8)r-er,+ TDICI9Rahe=a P,a<a0 4th ),r 1K C--$**ar$at Ra!DS"<a C$r#,e&an%a,re 5625

IF& Vent"re Cap$ta, F$nan#e L$-$te!J71 ($!!,etn RCa,#"tta KK1

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Te-p,etn In!$a Pr$/ate E"$t+ F"n!125 Free Pre** B"*e

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