VENTURE CAP. Final Hemant

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    Major Research Project

    [For the partial fulfillment of requirement towards degree in Master of Business

    Administration (MBA), 2009-11 of Devi Ahilya Vishva Vidhalay (DAVV), Indore]

    On

    venture Capital Analysis:An EmpiricalStudy

    Guided By: - Submitted By:-

    Mr.M.L .Patidar Hemant JainMBA IV Semester

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    Project SummaryThe report of the present study has been divided into 7 chapters.

    Chapter 1: contains Introduction which includes Conceptual Framework,

    Introduction of topic, Review of Literature, & Rationale of study.

    Chapter 2: contains Research Methodology which includes Objectives of study,

    Method of Research, Nature of the study, both for Data collection and Data Analysis.

    Chapter 3: contains Data Analysis which contains Method of data analysis (type of

    statistical tool).It includes various graphs, charts and tables.

    Chapter 4- contains Findings and Conclusions which includes Conclusion , Policy

    implications (advices), Limitations of the study.

    Chapter 5: contains References

    1- Bibliography-preferred books, journals, other papers (in alphabetical order)

    2- -Webliography (website references (in alphabetical order)

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    Certificate of Faculty Guide

    This is to certify that HEMANT JAIN student of Master of Business

    Administration(Full Time) program has completed Major Research Project on

    Venture Capital Analysis: An Empirical Study under my guidance and

    supervision.

    The research done by him is original and genuine and all the data collected is

    found to be authentic and submitted to me.

    Date: __________ Mr. M.L.PATIDAR

    Place: Indore Faculty Guide LKCT,

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    Declaration

    For the partial fulfillment of requirement towards degree in Master of Business

    Administration, 2009-11 of Devi Ahilya Vishva Vidhalaya, Indore, I present this

    project entitled Venture Capital Analysis: An Empirical Study this project

    completed under the supervision of Mr. M.L.PATIDAR, faculty guide in LKCT,

    Indore.

    I declare that the work presented in

    the major research project is my genuine work, except as acknowledge in the text

    and foot notes. According to my knowledge this material has not submitted either

    in whole or in part for a degree at this institute or at any such institute earlier.

    Student Name

    HEMANT JAIN

    MBA (FT) IV

    Roll.No-09170320

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    Acknowledgement

    The feeling of gratitude when expressed in words is only a fraction of

    acknowledgement. I cannot express my gratitude fully in words to all those who

    have extended their consistent support to enable to complete the project.

    I would like to express my thanks & gratitude to my

    Major Research Project mentor Mr. M.L.Patidar, Faculty LKCT, for the

    valuable guidance he/she has given me on the Major Research Project. She/he

    has given me all the freedom to work and helping & advising me throughout

    project. Every step in my project had a demand of deep understanding of the

    concepts which was only possible with the help of our professor, students.

    A part from this, I would like to thank all the respected professors who trim the

    silver lamp of knowledge kept the scared of flame bright towards me. I would

    also like to thank all the respondents who helped me whole heartedly by

    providing me valuable information.

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    Chapter-1

    Conceptual Frame Work

    Concept of Venture CapitalStage of Venture CapitalMethod of Venture FinancingVenture Capital Process

    Introduction

    Introduction of Venture CapitalVenture CapitalistVenture Capital In India

    Review of Literature

    Rationale of Study

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    CONCEPT

    The term venture capital comprises of two words that is, Venture and Capital.

    Venture is a course of processing, the outcome of which is uncertain but to which is

    attended the risk or danger of loss. Capital means recourses to start an enterprise.

    To connote the risk and adventure of such a fund, the generic name Venture Capital

    was coined.

    Venture capital has also been described as unsecured risk financing. The relatively

    high risk of venture capital is compensated by the possibility of high returns usually

    through substantial capital gains in the medium term. Venture capital in broader sense

    is not solely an injection of funds into a new firm, it is also an input of skills needed to

    set up the firm, design its marketing strategy, organize and manage it. Thus it is a long

    term association with successive stages of companys development under highly risky

    investment conditions, with distinctive type of financing appropriate to each stage of

    development. Investors join the entrepreneurs as co-partners and support the project

    with finance and business skills to exploit the market opportunities.

    Feature of venture capital

    High Risk

    By definition the Venture capital financing is highly risky and chances of failure are high

    as it provides long term startup capital to high risk-high reward ventures. Venture capital

    assumes four types of risks, these are:

    Management risk- Inability of management teams to work together.

    Market risk

    - Product may fail in the market.

    Product risk

    - Product may not be commercially viable.

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    Operation risk

    - Operations may not be cost effective resulting in increased cost decreased gross

    margins.

    High Tech

    As opportunities in the low technology area tend to be few of lower order, and hi-tech

    projects generally offer higher returns than projects in more traditional areas, venture

    capital investments are made in high tech. areas using new technologies or producing

    innovative goods by using new technology. Not just high technology, any high risk

    ventures where the entrepreneur has conviction but little capital gets venture finance.

    Venture capital is available for expansion of existing business or diversification to a high

    risk area. Thus technology financing had never been the primary objective but incidental

    to venture capital.

    Equity Participation & Capital Gains

    Investments are generally in equity and quasi equity participation through direct

    purchase of shares, options, convertible debentures where the debt holder has the

    option to convert the loan instruments into stock of the borrower or a debt with warrants

    to equity investment. The funds in the form of equity help to raise term loans that are

    cheaper source of funds. In the early stage of business, because dividends can be

    delayed, equity investment implies that investors bear the risk of venture and would

    earn a return commensurate with success in the form of capital gains.

    Participation In Management

    Venture capital provides value addition by managerial support, monitoring and follow up

    assistance. It monitors physical and financial progress as well as market developmentinitiative. It helps by identifying key resource person. They want one seat on the

    companys board of directors and involvement, for better or worse, in the major decision

    affecting the direction of company. This is a unique philosophy of hands on

    management where Venture capitalist acts as complementary to the entrepreneurs.

    Based upon the experience other companies, a venture capitalist advise the promoters

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    on project planning, monitoring, financial management, including working capital and

    public issue. Venture capital investor cannot interfere in day today management of the

    enterprise but keeps a close contact with the promoters or entrepreneurs to protect his

    investment.

    Length of Investment

    Venture capitalist help companies grow, but they eventually seek to exit the investment

    in three to seven years. An early stage investment may take seven to ten years to

    mature, while most of the later stage investment takes only a few years. The process of

    having significant returns takes several years and calls on the capacity and talent of

    venture capitalist and entrepreneurs to reach fruition.

    Illiquid Investment

    Venture capital investments are illiquid, that is, not subject to repayment on demand or

    following a repayment schedule. Investors seek return ultimately by means of capital

    gains when the investment is sold at market place. The investment is realized only on

    enlistment of security or it is lost if enterprise is liquidated for unsuccessful working. It

    may take several years before the first investment starts to locked for seven to ten

    years. Venture capitalist understands this illiquidity and factors this in his investment

    decisions.

    Stages of Venture Capital Funding:

    The Venture Capital funding varies across the different stages of growth of a firm.

    The various stages are::

    1. Pre seed Stage:-:Here, a relatively small amount of capital is provided to an

    entrepreneur to conceive and market a potential idea having good future

    prospects .The funded work also involves product development to some extent.

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    2. Seed Stage:- : Financing is provided to complete product development and

    commence initial marketing formalities.

    3. Early Stage / First Stage:-: Finance is provided to companies to initiate

    commercial manufacturing and sales.

    4. Second Stage:-In the Second Stage of Financing working capital is provided

    for the expansion of the company in terms of growing accounts receivable and

    inventory.

    5. Third Stage:-: Funds provided for major expansion of a company having

    increasing sales volume. This stage is met when the firm crosses the breakeven

    point.

    6. Bridge / Mezzanine Financing or Later Stage Financing:-:Bridge

    /Mezzanine Financing or Later Stage Financing is financing a company just

    before its IPO (Initial Public Offer). Often, bridge finance is structured so that it

    can be repaid, from the proceeds of a public offering.

    Methods of Venture Financing

    Venture capital is typically available in three forms in India, they are:

    Equity:-:All VCFs in India provide equity but generally their contribution does not

    exceed 49 percent of the total equity capital. Thus, the effective control and majority

    ownership of the firm remains with the entrepreneur. They buy shares of an enterprise

    with an intention to ultimately sell them off to make capital gains.

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    Conditional Loan :- It is repayable in the form of a royalty after the venture is able

    to generate sales. No interest is paid on such loans. In India, VCFs charge royalty

    ranging between 2 to 15 percent; actual rate depends on other factors of the venture

    such as gestation period, cost-flow patterns, riskiness and other factors of the

    enterprise.

    Income Note:-:It is a hybrid security which combines the features of both

    conventional loan and conditional loan. The entrepreneur has to pay both interest and

    royalty on sales, but at substantially low rates.

    Other Financing Methods :- A few venture capitalists, particularly in the private

    sector, have started introducing innovative financial securities like participating

    debentures, introduced by TCFC is an example.

    The Venture Capital Process

    The Venture Capital Investment Process:

    The venture capital activity is a sequential process involving the following six steps:

    1. Deal origination

    2. Screening

    3. Due diligence Evaluation

    4. Deal structuring

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    5. Post-investment activity

    6. Exit

    Indianmba.com (Fig 1.1)

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    Venture Capital Investment Process

    Deal origination:

    In generating a deal flow, the VC investor creates a pipeline of deals or

    investment opportunities that he would consider for investing in.

    Deal may originate in various ways. referral system, active search system, and

    intermediaries. Referral system is an important source of deals.

    Deals may be referred to VCFs by their parent organizations, trade partners,

    industry associations, friends etc. Another deal flow is active search through

    networks, trade fairs, conferences, seminars, foreign visits etc.

    Intermediaries is used by venture capitalists in developed countries like USA, is

    certain intermediaries who match VCFs and the potential entrepreneurs.

    Screening:

    VCFs, before going for an in-depth analysis, carry out initial screening of all

    projects on the basis of some broad criteria. For example, the screening process

    may limit projects to areas in which the venture capitalist is familiar in terms of

    technology, or product, or market scope.

    The size of investment, geographical location and stage of financing could also

    be used as the broad screening criteria.

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    Due Diligence:

    Due diligence is the industry jargon for all the activities that are associated with

    evaluating an investment proposal. The venture capitalists evaluate the quality of

    entrepreneur before appraising the characteristics of the product, market or

    technology. Most venture capitalists ask for a business plan to make an

    assessment of the possible risk and return on the venture.

    Business plan contains detailed information about the proposed venture. The

    evaluation of ventures by VCFs in India includes;

    Preliminary evaluation: The applicant required to provide a brief profile of the

    proposed venture to establish prima facie eligibility.

    Detailed evaluation: Once the preliminary evaluation is over, the proposal is

    evaluated in greater detail. VCFs in India expect the entrepreneur to have:-

    Integrity, long-term vision, urge to grow, managerial skills, commercial

    orientation.

    VCFs in India also make the risk analysis of the proposed projects which

    includes:

    Product risk, Market risk, Technological risk and Entrepreneurial risk. The final

    decision is taken in terms of the expected risk-return trade-off as shown in

    Figure.

    Deal Structuring: Structuring refers to putting together the financial aspects of the

    deal and negotiating with the entrepreneurs to accept a venture capitals

    proposal and finally closing the deal.

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    To do a good job in structuring, one needs to be knowledgeable in areas of

    accounting, cash flow, finance, legal and taxation. Also the structure should take

    into consideration the various commercial issues (ie what the entrepreneur wants

    and what the venture capital would require protecting the investment).

    Documentation refers to the legal aspects of the paperwork in putting the deal

    together. The instruments to be used in structuring deals are many and varied.

    The objective in selecting the instrument would be to maximize (or optimize)

    venture capitals returns/protection and yet satisfies the entrepreneurs

    requirements. The instruments could be as follows:

    Instrument Issues

    Loan Clean vs secured

    Interest bearing vs non interest bearing

    convertible vs one with features (warrants)

    1st Charge, 2nd Charge,

    loan vs loan stock

    Maturity

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    Preference shares redeemable (conditions under Company Act)

    participating

    par value

    nominal shares

    Warrants exercise price

    expiry period

    Common shares new or vendor shares

    par value

    partially-paid shares

    (Fig 1.2)

    ,In India, straight equity and convertibles are popular and commonly used.

    Nowadays, warrants are issued as a tool to bring down pricing.

    A variation that was first used by PACT and TDICI was "royalty on sales". Under

    this, the company was given a conditional loan. If the project was successful, the

    company had to pay a % age of sales as royalty and if it failed then the amount

    was written off.

    In structuring a deal, it is important to listen to what the entrepreneur wants, but

    the venture capital comes up with his own solution. Even for the proposed

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    investment amount, the venture capital decides whether or not the amount

    requested,

    is appropriate and consistent with the risk level of the investment.

    The risks should be analyzed, taking into consideration the stage at which the

    company is in and other factors relating to the project. (eg exit problems, etc)

    Post Investment Activities :

    Once the deal has been structured and agreement finalized, the venture

    capitalist generally assumes the role of a partner and collaborator. He also gets

    involved in shaping of the direction of the venture.

    The degree of the venture capitalists involvement depends on his policy. It may

    not, however, be desirable for a venture capitalist to get involved in the day-to-

    day operation of the venture. If a financial or managerial crisis occurs, the

    venture capitalist may intervene, and even install a new management team.

    Exit:

    Venture capitalists generally want to cash-out their gains in five to ten years after

    the initial investment. They play a positive role in directing the company towards

    particular exit routes. A venture may exit in one of the following ways:

    1. Initial Public Offerings (IPOs)

    2. Acquisition by another company

    3. Purchase of the venture capitalists shares by the promoter,

    4. Purchase of the venture capitalists share by an outsider.

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    BRIEF PROFILE OF MAJOR PLAYERS

    IDBI Venture Capital FundThis was established in1986 with the objective to finance projects whose requirements

    range between Rs. 5lakhs to 2.5crores. The promoters stake should be

    at least 10percent for the ventures below Rs. 50lakhs and 15percent

    for those above 50 lakhs. Financial assistance is extended in the form of

    unsecured loans involving minimum legal formalities. Interest at concessional

    rate of 9percent is charged during technology development and trial run

    of production stage and it will be 17percent once the product is commercially

    traded in the market by the financially assisted firm. IDBI venture capital

    funds extends its financial assistance to the ventures likely to be engaged in the

    fields of chemicals, computer software, electronics, bio-technology, non-conventional

    energy, food products, refractoriness and medical equipments.

    Technology Development and Information Company of India Limited (TDICI)

    This venture Capital fund was jointly floated by Industrial Credit & Investment

    Corporation of Ind ia ( ICIC I) and Uni t Tru st of I ndi a (U TI) to f inan ce the

    pr oj ec ts of pr of es si on al technocrats who take init iative in designing and

    developing ind igenous techno logy in the country. Technology Development and

    Information Company of India Limited (TDICI) was launched with an authorized

    capital base of Rs. 20 crores and the same was targeted to be increased to

    Rs. 40 to 50crores.

    TDICI favors the firms seeking financial assistance for developing

    information technology, management consultancy, and pharmaceutica l.

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    Unit Trust of India (UTI)

    In 1988-99 UTI set-ups a venture capital fund of Rs. 20 crores in collaboration with

    ICICI for fostering industrial development. TDICI estab lished by UTI jointly

    with ICICI acts as an advisor and manager of the fund. UTI launched venture capital

    unit scheme (VECAUS-I) to raise resources for this fund. It has set up a second venture

    capital fund in March 1990 with capi tal of Rs. 100 crores with the objective of

    financing green field ventures and steering industrial development.

    Risk Capital and Technology Finance Corporation Ltd. (RCTFC)

    IFCI had sponsored in 1985, Risk Capital Foundation (RCF) to give positive

    encouragement to the new entrepreneurs. RCF was converted into RCTFC on 12th

    January, 1988. It provides both risk capital and technology finance and roof to

    innovative entrepreneurs and technocrats for their technology oriented ventures.36

    Small Industrial Development Bank of India (SIDBI)

    Small Industrial Development Bank of India (SIDBI) has decided to set-up a venture

    capital fund in July 1993, exclusively for support to entrepreneurs in the small

    sector. Initially corpus has been created by setting apart Rs. 10 crores. The

    fund would be augmented in future, depending upon requirements.

    Andhra Pradesh Industrial Development Corporation (APIDC)

    APIDC Venture Capital Ltd. (APIDC-VCL) was promoted by APIDC with an

    author ized capital of Rs.2 million on 29th August 1989. Its main objective is to

    encourage technology-based ventures particu larly those started by first

    generation technocrat entrepreneurs adventures involving high risk in the state of

    Andhra Pradesh.

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    Gujarat Venture Finance Limited (GVFL)

    GVFL has been promoted by the Gujarat Industrial Investment Corporation Limited

    (GIIC)in 1990, to provide financial support to the ventures whose

    requirements range between 25 lakhs and 2 crores. Total corpus of Rs. 24 crores of

    the referred venture capital fund was co-financed by GIIC, state financial corporation,

    some private corporate and World Bank.

    Thef i rms engaged in b iotechnology, surg ica l inst ruments, conservat io

    n of energy and foodprocessing industries are financed by GVFL.

    Commercial Banks Sponsored Venture Capital Funds

    State Bank of India, Canara Bank, Grindlays Bank and many other banks have

    participated in the venture capital fund building Industry in order to provide

    financial assistance to the projects associated with high risks. SBI venture

    cap ita l i s moni tored through SBI capital markets. Can banks venture capital

    functions through Canbank. Financial services and India Investment Fund represents

    the venture capital launched by Grindlays Bank.

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    Introduction

    The venture capital investment helps for the growth of innovativeentrepreneurships in India.

    Venture capital has developed as a result of the need to provide non

    conventional, risky finance to new ventures based on innovative

    entrepreneurship.

    Venture capital is an investment in the form of equity, quasi-equity and

    sometimes debt - straight or conditional, made in new or untried concepts,

    promoted by a technically or professionally qualified entrepreneur.

    Venture capital means risk capital.

    Venture capital is money provided by professionals who invest alongside

    management in young, rapidly growing companies that have the potential to

    develop In to significant economic contributors.

    . Venture capital is an important source of equity for start- up companies.

    Professionally managed venture capital firms generally are private partnershipsor closely-held corporations funded by private and public pension funds,

    endowment funds, foundations, corporations, wealthy individuals, foreign

    investors, and the venture capitalists themselves.

    Venture capitalists generally:

    Finance new and rapidly growing companies Purchase equity securities.

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    Assist in the development of new products or services

    Add value to the company through active participation

    Take higher risks with the expectation of higher rewards

    Have a long-term orientation.

    When considering an investment, venture capitalists carefully screen the

    technical and business merits of the proposed company.

    Venture capitalists only invest in a small percentage of the businesses they

    review and have a long-term perspective.

    They also actively work with the company's management, especially with

    contacts and strategy formulation.

    Venture capitalists mitigate the risk of investing by developing a portfolio of

    young companies in a single venture fund.

    Many times they co-invest with other professional venture capital firms. In

    addition, many venture partnerships manage multiple funds simultaneously. Fordecades, venture capitalists have nurtured the growth of America's high

    technology and entrepreneurial communities resulting in significant job creation,

    economic growth and international competitiveness.

    Companies such as Digital Equipment Corporation, Apple, Federal Express,

    Compaq ,Sun Microsystems, Intel, Microsoft and Genetech are famous examples

    of companies that received venture capital early in their development.

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    Definition:-

    Jane Koloski Morris, editor of the well known industry publication, Venture

    Economics, defines venture capital as 'providing seed, start-up and first stage

    financing' and also 'funding the expansion of companies that have already

    demonstrated their business potential but do not yet have access to the public

    securities market or to credit oriented institutional funding sources.

    The organization for economic co-operation and development :-

    Capital provided by firms who invest alongside management in young companies that

    are not quoted on the stock market. The objective is high return from the investment.

    value is created by the young company in partnership with venture capitalists money

    and professional expertise

    Internatoinal finance corporation :equity or equity featured capital seeking

    investment in new ideas, new companies ,new products, new process or new services

    that offer the potential of high returns on investment. it also include investment in

    turnaround situation.

    Bank of England quarterly bulletin:venture capital investment is defined as

    an activity by which investors support entrepreneurial talent with finance and business

    skill to exploit market opportunities and thus obtain long term capital gain

    The European Venture Capital Associationdescribes it as risk finance forentrepreneurial growth oriented companies. It is investment for the medium or long

    Term return seeking to maximize medium or long term for both parties. It is a

    partnership with the entrepreneur in which the investor can add value to the company

    because of his knowledge, experience and contact base.

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    What is a Venture Capitalist?

    The typical person-on-the-street depiction of a venture capitalist is that of awealthy financier who wants to fund start-up companies.

    The perception is that a person who develops a brand new change-the-world

    invention needs capital; thus, if they cant get capital from a bank or from their

    own pockets, they enlist the help of a venture capitalist.

    The venture capitalist may look at several hundred investment opportunities

    before investing in only a few selected companies with favorable investment

    opportunities.

    These "angel investors" will mentor a company and provide needed capital and

    expertise to help develop companies.

    Angel investors may either be wealthy people with management expertise or

    retired business men and women who seek the opportunity for first-hand

    business development.

    Factor to be considered by venture capitalist in

    selection of investment proposal

    There are basically four key elements in financing of ventures which are studied in

    depth by the venture capitalists. These are:

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    1. Management:- :The strength, expertise & unity of the key people on the board

    bring significant credibility to the company. The members are to be mature,

    experienced possessing working knowledge of business and capable of taking

    potentially high risks.

    2. Potential for Capital Gain:-:An above average rate of return of about 30 -

    40% is required by venture capitalists. The rate of return also depends upon the

    stage of the business cycle where funds are being deployed. Earlier the stage,

    higher is the risk and hence the return.

    3. Realistic Financial Requirement and Projections:- The venture

    capitalist requires a realistic view about the present health of the organization as well

    as future projections regarding scope, nature and performance of the company in

    terms of scale of operations, operating profit and further costs related to product

    development through Research & Development.

    4. Owner's Financial Stake:-The financial resources owned & committed by

    the entrepreneur/ owner in the business including the funds invested by family,

    friends and relatives play a very important role in increasing the viability of the

    business. It is an important avenue where the venture capitalist keeps an open eye.

    Venture Capital in INDIA

    Venture capital was introduced in India in mid eighties by All India Financial

    Institutions with the inauguration of Risk Capital Foundation (RCF) sponsored by

    IFCI with a view to encourage the technologists and the professional to promote

    new industries.

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    Consequently the government of India promoted the venture capital during 1986-

    87 by creating a venture capital fund in the context of structural development and

    growth of small-scale business enterprises.

    The Indian Venture Capital Industry (IVCI) is just about a decade old industry as

    compared to that in Europe and US. In this short span it has nurtured close to

    one thousand ventures, mostly in SME segment and has supported building

    technocrat/professionals all through.

    The Venture Capital companies operating at present can be divided into four

    groups:

    Promoted by All India Development Financial Institutions

    Promoted by State Level Financial Institutions

    Promoted by Commercial banks

    Private venture Capitalists.

    Promoted by all India development financial institutions

    The IDBI started a VC fund in 19876 as per the long term fiscal policy of government of

    India, with an initial capital of Rs. 10 cr which raised by imposing acess of 5% on all

    payments made for the import of technology know- how projects requiring funds

    fromrs.5 lacs to rs 2.5cr were considered for financing. Promoters contribution ranged

    from this fund was available at a concessional interest rate of 9% ( during gestation

    period)which could be increased at later stages.

    The ICICI provided the required impetus to VC activities in India, 1986, it started

    providing VC finance in 1998 it promoted, along with the Unit Trust of India (UTI)

    Technology Development and Information Company of India (TDICI) as the first VC

    company registered under the companies act, 1956. The TDICI may provide financial

    assistance to venture capital undertakings which are set up by technocrat

    entrepreneurs, or technology information and guidance services.

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    The risk capital foundation established by the industrial finance corporation of

    India(IFCI) in 1975, was converted in 1988 into the Risk Capital and Technology

    Finance company (RCTC) as a subsidiary company of the ifci the rctc provides

    assistance in the form of conventional loans, interest free conditional loans on profit

    and risk sharing basis or equity participation in extends financial support to high

    technology projects for technological up gradations. The RCTC has been renamed as

    IFCI Venture Capital Funds Ltd.(IVCF)

    Promoted by State Level Financial Institutions

    In India, the State Level financial institutions in some states such as Madhya Pradesh,

    Gujarat, Uttar Pradesh, etc., have done an excellent job and have provided VC to a

    small scale enterprises. Several successful entrepreneurs have been the beneficiaries

    of the liberal funding environment. In 1990,the Gujarat Industrial Investment

    Corporation, promoted the Gujarat Venture Financial Ltd.(GVFL) along with other

    promoters such as the IDBI, the World Bank, etc. The GVFL provides financial

    assistance to businesses in the form of equity, conditional loans or income notes for

    technologies development and innovative products. It also provides finance assistance

    to entrepreneurs.The government of Andhra Pradesh has also promoted the Andhra Pradesh Industrial

    Development Corporation (APIDC) venture capital ltd. To provide VC financing in

    Andhra Pradesh.

    Promoted by commercial banks

    Canbank Venture Capital Fund, State Bank Venture Capital Fund and Grind lays bank

    Venture Capital Fund have been set up by the respective commercial banks to

    undertake vc activities.

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    The State Bank Venture Capital Funds provides financial assistance for bought out

    deals well as new companies in the form of equity which it disinvests after the

    commercialization of the project.

    Canbank Venture Capital Fund provides financial assistance for proven but yet to b

    commercially exploited technologies. It provides assistance both in the form of equity

    and conditional loans.

    Private Venture Capital Funds

    Several private sector venture capital funds have been established in India such as the

    20thCenture Venture Capital Company, Indus Venture Capital Fund, Infrastructure

    Leasing and Financial Services Ltd.

    Some of the companies that have received funding through this route include:

    Mastek, on of the oldest softwear house in India

    Ruskan software, Pune based software consultancy

    SQL Star, Hyderabad-based training and software development consultancy

    Satyam infoway, the first private ISP in India

    Hinditron, makers of embedded software

    Selectia, provider of interactive software selectior

    Yantra, ITLInfosys US subsidiary, solution for supply chain management .

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    Some important Venture Capital Funds in India:-

    1. APIDC Venture Capital Limited, , Babukhan Estate, Hyderabad 500 001

    2. Canbank Venture Capital Fund Limited, IInd Floor, Kareem Towers,

    Bangalore.

    3. Gujarat Venture Capital Fund 1997, Ashram Road, Ahmedabad 380 009

    4. Industrial Venture Capital Limited, Thyagaraya Road, Chennai 600 017

    5. Gujarat Venture Capital Fund 1995 Ashram Road Ahmedabad 380 009

    6. Karnataka Information Technology Venture Capital Fund Cunningham Rd

    Bangalore

    7. India Auto Ancillary Fund Nariman Point, Mumbai 400 021

    8. Information Technology Fund, Nariman Point, Mumbai 400021

    9. Tamil nad InfoTech Fund Nariman Point, Mumbai 400021

    10. Orissa Venture Capital Fund Nariman Point Mumbai 400021

    11. Uttar Pradesh Venture Capital Fund Nariman Point, Mumbai 400021

    12. SICOM Venture Capital Fund Nariman Point Mumbai 400 021

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    REVIEWOFLITERATURE

    According to Vijayalakshman & Dalvi,

    Whenever Indian policy makers have to encourage any industry. The usual practice is

    to grant that the industry tax breaks for a limited period. This definitely acts as a positive

    incentive for that industry. However, what is required is a thorough understanding of the

    industry requirement framing and implementation of aggregative strategy for its

    development. VC funds are not even registered with SEBI in spite of all the benefit

    available. VC industry is one, which will today prepare a base for a strong tomorrow.

    What is need for the development of VC industry is not only tax breaks but simpler

    procedures legislation for simplified exit form investment, more transparency and legal

    backing to participate in business amongst other things.

    According to Kumar and Kaura,

    The present study reports four factors which are used by the venture capitalist to screennew venture proposals. Using Kendalls tau-c analysis, the study brings out strong

    association between several variable pair. Broadly, the analysis finds that:

    Successful venture teams put in sustained efforts o identified target markets.

    They are highly meticulous while attending to the details.

    These teams are adept at dealing with risk because of their impeccable past

    experience.

    Indian venture capitalists do not seem to be much enamored of technology

    venturing; at least some of the successful funded by them do not seem to show

    signs of being hi- tech. The study brings out four important variables which are

    highly unique to successful venture in India. They are:

    Ability to evaluate and react to risk

    Attention to details

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    Market share

    Profits.

    Evaluating risk seems to be an area where unsuccessful venture fail. Since

    successful teams focus on established markets and meticulously pursue these

    markets to gain market share, they achieve desired profits

    According to Robbie, (1997)

    Robbies, et. al. (1997) highlights the monitoring policies of funded units by venture

    capitalists and studies the performance targets, monitoring information, and monitoring

    actions through a questionnaire-based survey. The survey was administered to 108

    British Venture Capital Association members and total of 77 responses were gathered

    in the study. The findings related to performance targets and other monitoring issues

    were considerable addition to the literature in the subject.

    The issues concerning board of directors' role in venture backed companies are widely

    debated topics in academic research. The findings of the study by Fried et.al. (1998)

    emphasize that the board of directors are a more involved in the venture backed firms

    than boards where members do not have large ownership at stake. The study provides

    an empirical evidence of variation in the boards' involvement and shows its relevance inperformance management of funded units.

    According To Kumar, (June 2003)

    This study focus on the industry should concentrate more on early stage business

    opportunities instead of later stage. It is the experience world over and especially in the

    United States of America that the early stage opportunities have generated exceptionalreturns for the industry. He also suggests that individual capitalists should follow a

    focused investment strategy. The specialization should be in a board technology

    segment.

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    According to Kumar, (March, 2004)

    The industry should concentrate more an early stage business opportunities instead oflater stage. It is the experience world over and especially in the United states of

    America that the early stage opportunities have generated exceptional for the industry.

    It is recommended that the venture capitalists should retain their basic feature that

    taking retain their basic feature that is taking high risk. The present situation may

    compel venture capitalists to opt for less risky opportunities but it is against the sprit of

    venture capitalism. The established fact is big gains are possible in high risk projects.

    According to Kumar, (May 2004)

    The Indian Venture Capital Industry has followed the classical model of venture capital

    finance. The early stage financing which includes seeds, startup & early stage

    investment was always the major part of the total investment. Whenever venture

    capitalists invest in venture certain basic preference play a crucial role in investment

    decision. Two such considerations are location preferences and ownership preferences.

    Seed stage finance is provided to new companies for the use in product development &

    initial marketing company may be in the process of setting up the business or may be in

    the business for short period but have not reach the stage of commercialization.

    According to Mishra, (July 2004)

    There is abundant empirical research conducted in developed countries which addressthe relative investment evaluation criteria taken into account in the screening process

    for new venture investment proposals. Zopunidis (1994) provides a useful summary of

    the previous research in this field. The identification of selection criteria has been

    researched using different methodologies such as simple rating of criteria (perpetual

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    and deal specific responses) Knight, 1986; Dixon, 1991; Hall and Hofer, 1993; Rah,

    Jung and Lee, 1994), construct analysis (Fried and Hisrich,1994), verbal protocols

    (Zhacharakis and Meyer, 1998), and quantitative compensatory models (Muzyka, Birley

    and Leleux, 1996; Shepherd, 1999). Multi methods (case analysis, study of

    administrative records, published interviews, questionnaire and personal interviews)

    approach has also been used (Riquelme, 1994) to enhance understanding of

    investment criteria and also extend it to other aspects of investment process like deal

    structuring and divestment.

    According to Subash and Nair, (May 2005)

    According to theses persons though the modern concept of venture capital stated

    during 1946 and now practiced by almost all economies around the world, there seems

    to be a slowdown of venture capital activities after 2000.There may be a long list of

    reasons for this situation, where people feel more risky to put their money in new and

    emerging ventures. Hardly 5% of the total venture capital investment globally is given to

    really stage ventures. In all the years people around the world has seen the potentiality

    of venture capital in promoting different economies of the world by improving the

    standard of living of the people by expanding business activities, increasing

    employment and also generating more revenue to the government.

    According to Chary, (September 2005)

    There has been a plethora of literature on venture capital finance, which is helping the

    practitioners viz., venture capital finance companies and fund manager for betterunderstanding the role of venture capital in economic development. There are number

    of studies on the venture capital and activities of venture capitalists in developed

    countries.

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    According to Vijayalakshman & Dalvi, ((Jan., 2006)

    Whenever Indian policy makers have to encourage any industry. The usual practice is

    to grant that the industry tax breaks for a limited period. This definitely acts as a positive

    incentive for that industry. However, what is required is a thorough understanding of the

    industry requirement framing and implementation of aggregative strategy for its

    development. VC funds are not even registered with SEBI in spite of all the benefit

    available. VC industry is one, which will today prepare a base for a strong tomorrow.

    What is need for the development of VC industry is not only tax breaks but simpler

    procedures legislation for simplified exit form investment, more transparency and legal

    backing to participate in business amongst other things.

    I.M.Panday (2009)

    In his scholarly work Venture Capital: The Indian Experience focuses his attention on

    the strategic role of venture capital in the development of technology, innovative

    entrepreneurship and small enterprises in India; the development process of venture

    capital by a systematic analysis of venture capital practices and policies in India; and

    the policy initiatives necessary for the success of venture capital in developing countries

    based on the Indian experience.

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    RATIONALE OF STUDY

    To confine that Venture Capital is related to such divers topic as corporate

    finance, leverage buyouts, merchant banking financing of start-ups, small

    business management, entrepreneurship development, business incubators,

    technology transfers, and economic development.

    The present study is confined to a specific aspect of venture capital i.e. appraisal

    of working of venture capital in developing country like India for proper

    perspective; the scope of the study has been widened to include the practices

    and experiences of the developed and some developing countries.

    To show that Capital is relatively small and emerging activity. The number of

    players in the industry is limited.

    To determine that It also indicates the geographical coverage is at all India bases

    adventure capital funds are spread in different parts of the country. As far as the

    time period covered under the study is concerned, all possible efforts are made

    to find out data from different authentic sources.

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    Chapter-2

    Research Methodology

    Objective

    Method of Research

    Tools Of Data Collection

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    OBJECTIVE OF STUDY

    When we are going to study something there is specific purpose for our study. It may be

    for our course, as hobby, for passing our time, to find out genuine solution for any

    problem or to draw out certain inferences out of the available data. The objectives of my

    study are:

    To find out the venture capital investment volume in India.

    To study the problem faced by venture capitalist in India.

    To study the future prospects of venture capital financing.

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    This research is an exploratory research. The major purpose of this research is

    description of state of affairs as it exists at present.

    Exploratory research is a type of research conducted for a problem that has not been

    clearly defined.

    The results of exploratory research are not usually useful for decision-making by

    themselves, but they can provide significant insight into a given situation.

    Although the results of qualitative research can give some indication as to the

    "why", "how" and "when" something occurs, it cannot tell us "how often" or "how

    many".

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    Tools of Data Collection

    Data

    Type Of Data

    Secondary Data

    Secondary data is the work or findings which are already present.

    Secondary data is in the form of published and unpublished documents, reports,

    magazines, letters etc. e.g. if the data published by RBI on currency, National Income,

    Exports or Imports, is used in some other statistical enquiry, it will be termed asSecondary data.

    It refers to the statistical material which is not originated by the investigator himself but

    obtained from someone else's records, or when Primary data is utilized for any other

    purpose at some subsequent enquiry it is termed as Secondary data. This type of data

    is generally taken from newspapers, magazines, bulletins, reports, journals etc.

    According to M.M. Blair, "Secondary data are those already in existence for some

    other purpose than the answering of the question in hand."

    Source Of Data Collection

    Internet

    Magazine

    Journal

    Newspaper

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    Chapter-3

    Data Analysis

    And

    Interpretation

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    Data Analysis

    Analysis of data is a process of inspecting, cleaning, transforming, and

    modeling data with the goal of highlighting useful information, suggesting

    conclusions, and supporting decision making. Data analysis has multiple facets

    and approaches, encompassing diverse techniques under a variety of names, in

    different business.

    The process of evaluating data using analytical and logical reasoning to examine

    each component of the data provided. This form of analysis is just one of the

    many steps that must be completed when conducting a research experiment.

    Data from various sources is gathered, reviewed, and then analyzed to formsome sort of finding or conclusion. There are a variety of specific data analysis

    method, some of which include data mining, text analytics, business intelligence,

    and data visualizations.

    Data Interpretation:

    Interpretation of data is done by using statistical tools like pie diagrams, bargraphs, and also using quantitative techniques accurate information is obtained.

    A number of tables, graphs are prepare to bring out the main characteristics ofthe data.

    Classification:-

    Data classification is sorting of data according to class, segment or category.

    Once data is classified it is easier to analyze it and draw conclusions.

    http://www.businessdictionary.com/definition/process.htmlhttp://www.businessdictionary.com/definition/data.htmlhttp://www.businessdictionary.com/definition/examine.htmlhttp://www.businessdictionary.com/definition/component.htmlhttp://www.businessdictionary.com/definition/form.htmlhttp://www.businessdictionary.com/definition/analysis.htmlhttp://www.investorwords.com/11189/step.htmlhttp://www.businessdictionary.com/definition/completed.htmlhttp://www.businessdictionary.com/definition/research.htmlhttp://www.businessdictionary.com/definition/experiment.htmlhttp://www.businessdictionary.com/definition/source.htmlhttp://www.businessdictionary.com/definition/method.htmlhttp://www.investorwords.com/9996/include.htmlhttp://www.businessdictionary.com/definition/data-mining.htmlhttp://www.businessdictionary.com/definition/analytics.htmlhttp://www.businessdictionary.com/definition/business-intelligence-BI.htmlhttp://www.businessdictionary.com/definition/business-intelligence-BI.htmlhttp://www.businessdictionary.com/definition/analytics.htmlhttp://www.businessdictionary.com/definition/data-mining.htmlhttp://www.investorwords.com/9996/include.htmlhttp://www.businessdictionary.com/definition/method.htmlhttp://www.businessdictionary.com/definition/source.htmlhttp://www.businessdictionary.com/definition/experiment.htmlhttp://www.businessdictionary.com/definition/research.htmlhttp://www.businessdictionary.com/definition/completed.htmlhttp://www.investorwords.com/11189/step.htmlhttp://www.businessdictionary.com/definition/analysis.htmlhttp://www.businessdictionary.com/definition/form.htmlhttp://www.businessdictionary.com/definition/component.htmlhttp://www.businessdictionary.com/definition/examine.htmlhttp://www.businessdictionary.com/definition/data.htmlhttp://www.businessdictionary.com/definition/process.html
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    Tabulation:-

    For the numerical identification and distinction of the available data, tabulation isused. Tabulation helps to compare and contrast the data.

    OBJECTIVE 1:-

    To Find out the venture capital investment volume in India

    Financing By Industry

    Industry RS. Crore

    Information technology VCF: Rs. 564 crore

    Telecommunications VCF: Rs. 1092 croer

    Pharmaceuticals VCF: Rs. 457 croer

    Biotechnology VCF: Rs. 186 crore

    Media/ Entertainment VCF: Rs. 903crore

    Services Sector VCF: Rs. 1168 crore

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    Industrial Products VCF: Rs. 947 crore

    Real Estate VCF: Rs. 8700 crore

    Others VCF: Rs. 11559 crore

    TOTAL VCF: Rs. 25576 crores

    www.sebi.gov.in (Fig: 3.1)

    (Fig: 3.2)

    564 1092457

    186903

    1168

    947

    8700

    11559

    Financing By Industry

    Information technology

    Telecommunications

    Pharmaceuticals

    Biotechnology

    Media/ Entertainment

    Services Sector

    Industrial Products

    Real Estate

    Other

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    Interpretation: In this diagram highest finance received by others 11559 crore and

    secondly finance received by Real Estate 8700 crore

    Venture Capital Investment by Stage

    Investment Stages $ millionSeed/start-up 36

    Other early stages 51

    Later stages 228

    (Fig: 3.3)

    36

    51

    228

    Investment by stage

    start-up

    early stages

    later stages

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    Decrease in seed/start-up investment, but increase in large later-stage

    investments

    Q1 2011 investments were increasingly concentrated in later-stage deals (73

    percent of all value) both in terms of deals (63 percent) and value (73 percent)

    compared to Q1 2010. The combined value of financing in all early stages in Q1

    2011 was $87 million, an 18 percent decline relative toQ1 2010 . This decline is

    attributable to fewer investments in other early-stage investments as seed and

    start-up financings remained relatively unchanged year-over-year

    Interpretation: This diagram shows the highest finance is received by the

    venture in later stage 228$million of any venture.

    Venture Capital by Type Investors

    Investors $ million

    Foreign Fund 100

    Private industry 68Institutions 10Government 61

    Other 29

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    (Fig: 3.4)

    Interpretation:-This Graph shows the highest contribution of fund FII

    100$million and secondly Private industry 68$ million to develop the Industry.

    VC EXIT

    EXIT VOLUME EXIT VALUE($ mn)

    Buyback 15 1695.32

    IPO 15 502.22

    M&A 40 1238.13Open market 76 1448.54

    Secondary sales 18 160.85

    100

    68

    10

    61

    29

    Venture Capital By Type Investors

    Foreign Fund

    Private industry

    Institution

    Government

    other

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    (Fig: 3.5)

    Interpretation: - This Graph shows the highest EXIT VALUE of BUY BACK

    1695.32$ million and secondly OPEN MARKET 1448.54$ million.

    1695.32

    502.221238.13

    1448.54

    160.85

    Exit Value $ mn

    Buy back

    IPO

    M&A

    Open market

    Secondary Market

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    Unfortunately, our country lacks on both fronts. The necessary capital can beobtained from the venture capital firms who expect an above average rate of

    return on the investment.

    The financing firms expect a sound, experienced, mature and capablemanagement team of the company being financed. Since the innovative project

    involves a higher risk, there is an expectation of higher returns from the project.

    The payback period is also generally high (5 7 years). The other issues that led

    to such a situation include:-

    License Raj and The IPO Boom

    Till early 90s, under the license raj regime, only commodity centric businesses

    thrived in a deficit situation

    To fund a cement plant, venture capital is not needed. What was needed was

    ability to get a license and then get the project funded by the banks and DFIs.

    In most cases, the promoters were well-established industrial houses, with no

    apparent need for funds. Most of these entities were capable of raising funds

    from conventional sources, including term loans from institutions and equity

    markets.

    Scalability

    The Indian software segment has recorded an impressive growth over the lastfew years and earns large revenues from its export earnings, yet our share in the

    global market is less than 1 per cent.

    Within the software industry, the value chain ranges from body shopping at the

    bottom to strategic consulting at the top.

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    Higher value addition and profitability as well as significant market presence take

    place at the higher end of the value chain.

    If the industry has to grow further and survive the flux it would only be through

    innovation. For any venture idea to succeed there should be a product that has a

    growing market with a scalable business model.

    The IT industry (which is most suited for venture funding because of its "ideas"

    nature) in India till recently had a service centric business model. Products

    developed for Indian markets lack scale.

    Mindsets

    Venture capital as an activity was virtually non-existent in India. Most venture

    capital companies want to provide capital on a secured debt basis, to established

    businesses with profitable operating histories.

    Most of the venture capital units were offshoots of financial institutions and banks

    and the lending mindset continued. True venture capital is capital that is used to

    help launch products and ideas of tomorrow. Abroad, this problem is solved by

    the presence of `angel investors.

    They are typically wealthy individuals who not only provide venture finance but

    also help entrepreneurs to shape their business and make their venture

    successful.

    Returns, Taxes and Regulations

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    There is a multiplicity of regulators like SEBI and RBI. Domestic venture funds

    are set up under the Indian Trusts Act of 1882 as per SEBI guidelines, while

    offshore funds routed through Mauritius follow RBI guidelines.

    Abroad, such funds are made under the Limited Partnership Act, which brings

    advantages in terms of taxation.

    The government must allow pension funds and insurance companies to invest in

    venture capitals as in USA where corporate contributions to venture funds are

    large.

    Exit

    The exit routes available to the venture capitalists were restricted to the IPO

    route. Before deregulation, pricing was dependent on the erstwhile CCI

    regulations.

    In general, all issues were under priced. Even now SEBI guidelines make it

    difficult for pricing issues for an easy exit.

    Given the failure of the OTCEI and the revised guidelines, small companies could

    not hope for a BSE/ NSE listing. Given the dull market for mergers and

    acquisitions, strategic sale was also not available.

    Valuation

    The recent phenomenon is valuation mismatches. Thanks to the software boom,

    most promoters have sky high valuation expectations.

    Given this, it is difficult for deals to reach financial closure as promoters do not

    agree to a valuation.

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    This coupled with the fancy for software stocks in the bourses means that most

    companies are preopening their IPOs.

    Consequently, the number and quality of deals available to the venture funds

    gets reduced Some other major problems facing by venture capitalist in India are:

    Requirement of an experienced management team.

    b. Requirement of an above average rate of return on investment. Longer

    payback period.

    c. Uncertainty regarding the success of the product in the market.

    d. Questions regarding the infrastructure details of production like plant

    location, accessibility, relationship with the suppliers and creditors,

    transportation facilities, labour availability etc.

    e. The category of potential customers and hence the packaging and pricing

    details of the product.

    f. The size of the market.

    g. Major competitors and their market share.

    h. Skills and Training required and the cost of training.

    i. Financial considerations like return on capital employed (ROCE), cost of

    the project, the Internal Rate of Return (IRR) of the project, total amount of

    funds required, ratio of owners investment (personnel funds of the

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    entrepreneur), borrowed capital, mortgage loans etc. in the capital

    employed.

    OBJECTIVE :-3

    To study the future prospect of Venture Capital Financing .

    Prospects of Venture Capital Financing

    With the advent of liberalization, India has been showing remarkable

    growth in the economy in the past 10 - 12 years.

    The government is promoting growth in capacity utilization of available

    and acquired resources and hence entrepreneurship development, by

    liberalizing norms regarding venture capital.

    While only eight domestic venture capital funds were registered with SEBI

    during 1996-1998, 14 funds have already been registered in 1999-2000.

    Institutional interest is growing and foreign venture investments are also

    on the rise.

    Many state governments have also set up venture capital funds for the IT

    sector in partnership with the local state financial institutions and SIDBI.

    These include Andhra Parades, Karnataka, Delhi, Kerala and Tamil Nadu.

    The other states are to follow soon.

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    Chapter-4

    ConclusionPolicy Implication

    Limitation of Study

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    Conclusion of the study

    A number of people in India feel that financial institution is not only Conservativesbut they also have a bias for foreign technology & they do not trust On the

    abilities of entrepreneurs.

    Some venture fails due to few exit options.The team usually a two or three man

    team. It does not possess therequired depth In top management. The team is

    often found to have technicalskills but does not possess the overall organization

    building skills team is oftenshort sited.

    Venture capitalists in India consider the entrepreneurs integrity &urge to grow as

    the most critical aspect or venture evaluation.

    Venture Capitalists in Indian have notice of newer avenues and regions to

    expand. VCs have moved beyond IT service but are cautious in exploring the

    right business model, for finding opportunities that generate better returns for

    their investors.

    In terms of impediments to expansion, few concerning factors to VCs include;

    unfavorable political and regulatory environment compared to other countries,

    difficulty in achieving successful exists and administrative delays in

    documentation and approval.

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    Policy Implication

    In the light of the conclusions reached related to the theoretical analysis of present

    status and working of venture capital in India, endeavor is made to offer some

    suggestions and recommendations to make the venture capital more useful in the

    country:

    1. The investment should be in turnaround stage. Since there are many sick industries

    in India and the number is growing each year, the venture capitalists that have

    specialized knowledge in management can help sick industries. It would also be highly

    profitable if the venture capitalist replace management either good ones in the sickindustries.

    2. It is recommended that the venture capitalists should retain their basic feature that is

    tasking high risk. The present situation may compel venture capitalists to opt for less

    risky opportunities but is against the spirit of venture capitalism. The established fact is

    big gains are possible in high risk projects.

    3. There should be a greater role for the venture capitalists in the promotion of

    entrepreneurship. The Venture capitalists should promote entrepreneur forums, clubs

    and institutions of learning to enhance the quality of entrepreneurship.

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    Limitations of Study

    The biggest limitation was time because the time was not sufficient as there waslot of information to be got & to have it interpretation

    The data required was secondary & that was not easily available.

    Study by its nature is suggestive & not conclusive

    Expenses were high in collecting & searching the data

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    Chapter-5

    References

    Bibliography

    Webliography

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    A) Bibliography

    I.M. Panday, Financial Management, Vikas Publication Pvt. Ltd. 2009,Ninth

    Edition.

    I.M. Panday- venture capital development process in India.

    I. M. Panday- venture capital the Indian experience, Publisher Prentice Hall of

    India 2010.

    Satyanarayana Chary, Venture Capital Concept and Application, Macmillan

    Publisher India 2005.

    Dr.Vasan Desai, The Indian Financial System and Development, Second

    Edition 2009.

    Gavin c. Reid ,Venture Capital Investment,2002.

    David Glade Stone, Laura glade Stone, Venture Capital Investing,2004.

    Joseph W. Bartlett, Fundamentals Of Venture Capital, Publisher-Madison

    Books, Edition (Nov17,1999).

    Paul. Gompers, Josh Lerner, The Venture Capital Cycle, Second Edition

    (Aug11,2006).

    G. Ramesh Babu, Financial Service In India, Publisher-Concept publishing

    Company,2005.

    Berkery, Dermot Raising VC for Entrepreneur, McGraw Hill 2008.

    Pankaj Sahai, Smooth Ride of VC-How to get VC funding for Business.

    Dilek Cetindamer , The Growth Of VC: A Cross Cultural 2007.

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    B) Various News Paper

    The Economic Times.

    The Times Of India.

    C) Webliography

    www.indiainfoline.com

    www.vcapital.com

    www.investopedia.com

    www.vcinstitute.com

    www.sebi.gov.in

    www.ivca.org

    Economictimes.indiatimes.com

    Timeofindia.indiatimes.com

    www.indiamba.com

    www.wekipedia.com

    http://www.vcapital.com/http://www.vcapital.com/http://www.investopedia.com/http://www.investopedia.com/http://www.vcinstitute.com/http://www.vcinstitute.com/http://www.sebi.gov.in/http://www.sebi.gov.in/http://www.ivca.org/http://www.ivca.org/http://www.indiamba.com/http://www.indiamba.com/http://www.wekipedia.com/http://www.wekipedia.com/http://www.wekipedia.com/http://www.indiamba.com/http://www.ivca.org/http://www.sebi.gov.in/http://www.vcinstitute.com/http://www.investopedia.com/http://www.vcapital.com/
  • 8/3/2019 VENTURE CAP. Final Hemant

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