IB PPt investment Banking)

8/9/2019 IB PPt investment Banking)

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Submitted By:Roshan Agarwal 14052

Tushar Nandeshwar

Shivani adhwa

!aibhav "ha

!#NT$R# %A&'TA(


2/14

ADVANTAGES OF VENTURE CAPITAL

It injects long term equit !n"nce #$ic$ %ro&i'es " soli'

c"%it"l ("se )or )uture gro#t$* T$e &enture c"%it"list is " (usiness %"rtner+ s$"ring

(ot$ t$e ris,s "n' re#"r's* Venture c"%it"lists "rere#"r'e' ( (usiness success "n' t$e c"%it"l g"in*

T$e &enture c"%it"list is "(le to %ro&i'e %r"ctic"l "'&ice"n' "ssist"nce to t$e com%"n ("se' on %"ste-%erience #it$ ot$er com%"nies #$ic$ #ere in simil"rsitu"tions*

T$e &enture c"%it"list "lso $"s " net#or, o) cont"cts inm"n "re"s t$"t c"n "'' &"lue to t$e com%"n+ suc$ "sin recruiting ,e %ersonnel+ %ro&i'ing cont"cts inintern"tion"l m"r,ets+ intro'uctions to str"tegic

%"rtners+ "n' i) nee'e' co.in&estments #it$ ot$er&enture c"%it"l !rms #$en "''ition"l roun's o)


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DISADVANTAGES OF VENTURE CAPITAL

Lengt$ "n' com%le- %rocess /nee's'et"ile' (usiness %l"n+ !n"nci"l %rojections"n' etc*0

In t$e 'e"l negoti"tion st"ge+ ou #ill $"&eto %" )or leg"l "n' "ccounting )ees

In&estors (ecome %"rt o#ners o) our(usiness . )oun'er loss o) "utonom orcontrol


4/14

St"ges 1 Ris, o) !n"ncing)inan*ial Stage &eriod +)unds

lo*,ed in years-

Ris, &er*e.tion A*tivity to be

/nan*ed

See' 2one 3.45 E-tremeFor su%%orting "

conce%t or i'e" orR1D )or %ro'uct

'e&elo%ment

St"rt U% 6.7 Ver 8ig$Initi"li9ing

o%er"tions or

'e&elo%ing%rotot%es

First St"ge :.3 8ig$St"rt commerci"ls

%ro'uction "n'm"r,eting


5/14

)inan*ial Stage &eriod +)undslo*,ed in years-

Ris, &er*e.tion A*tivity to be/nan*ed

Secon' St"ge :.6 Su;cientl $ig$

E-%"n' m"r,et

"n' gro#ing#or,ing c"%it"l

nee'

T$ir' St"ge 4.: 2e'ium

2"r,et e-%"nsion+"cquisition 1

%ro'uct'e&elo%ment )or

%ro!t m",ingcom%"n

Fourt$ St"ge 4.: Lo# F"cilit"ting %u(licissue


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INVEST2ENT PROCESS

De"l origin"tion

Screening

Due 'iligence/E&"lu"tion0

De"l structuring

Post in&estment"cti&it

E-it %l"n


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2ET8ODS OF VENTURE FINANCING

Follo#ing "re t$e &"rious met$o's o) &enture!n"ncing<

Equit

Con'ition"l lo"nIncome noteP"rtici%"ting 'e(entures=u"si equit


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VENTURE CAPITAL FUNDING IN INDIA


9/14

Venture c"%it"l )un's in In'i"

!%)s in 'ndia *an be *ategoried into ollowing/ve grou.s:

40 T$ose %romote' ( t$e Centr"l Go&ernment

controlle' 'e&elo%ment !n"nce institutions*For e-"m%le<

. ICICI Venture Fun's Lt'* . IFCI Venture C"%it"l Fun's Lt' /IVCF0

. SID>I Venture C"%it"l Lt' /SVCL0


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?0 T$ose %romote' ( St"te Go&ernmentcontrolle' 'e&elo%ment !n"nce

institutions*For e-"m%le<

. Punj"( In)otec$ Venture Fun' . Guj"r"t Venture Fin"nce Lt' /GVFL0

:0 T$ose %romote' ( %u(lic ("n,s* Fore-"m%le<

. C"n("n, Venture C"%it"l Fun' . S>I C"%it"l 2"r,et Lt'


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@0T$ose %romote' ( %ri&"te sectorcom%"nies*For e-"m%le<

. IL1FS Trust Com%"n Lt' . In!nit Venture In'i" Fun'

60T$ose est"(lis$e' "s "n o&erse"s &enturec"%it"l )un'*For e-"m%le<

. "l'en Intern"tion"l In&estment Grou%

. 8S>C Pri&"te Equit. 2"n"gement 2"uritius Lt'


12/14

Rules ( SE>I

VCF "re regul"te' ( t$e SE>I /Venture C"%it"lFun'0 Regul"tions+ 477B*

T$e )ollo#ing "re t$e &"rious %ro&isions<

A &enture c"%it"l )un' m" (e set u% ( "com%"n or " trust+ ")ter " certi!c"te o)registr"tion is gr"nte' ( SE>I on "n "%%lic"tionm"'e to it* On recei%t o) t$e certi!c"te o)registr"tion+ it s$"ll (e (in'ing on t$e &enturec"%it"l )un' to "(i'e ( t$e %ro&isions o) t$eSE>I Act+ 477?*


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A VCF m" r"ise mone )rom "n in&estor+In'i"n+ Non.resi'ent In'i"n or )oreign+ %ro&i'e't$e mone "cce%te' )rom "n in&estor is notless t$"n Rs 6 l",$s* T$e VCF s$"ll not issue"n 'ocument or "'&ertisement in&iting oers)rom t$e %u(lic )or su(scri%tion o) its securitor units

SE>I regul"tions %ermit in&estment ( &enture

c"%it"l )un's in equit or equit rel"te'instruments o) unliste' com%"nies "n' "lso in!n"nci"ll #e", "n' sic, in'ustries #$oses$"res "re liste' or unliste'


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At le"st 5 o) t$e )un's s$oul' (ein&este' in &enture c"%it"l com%"nies

"n' no ot$er limits "re %rescri(e'*

SE>I Regul"tions 'o not %ro&i'e )or "nsector"l restrictions )or in&estment e-ce%t

in&estment in com%"nies eng"ge' in!n"nci"l ser&ices*

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