- Venture capital is a
type of private equity capital typically provided by professional,
outside investors to new, growth businesses. Generally made as cash in
exchange for shares in the invested company, venture capital investments
are usually high risk, but offer the potential for above-average
returns.
- A venture capitalist
(VC) is a person who makes such investments. A venture capital fund is a
pooled investment vehicle (often a limited partnership) that primarily
invests the financial capital of third-party investors in enterprises
that are too risky for the standard capital markets or bank
loans.
- The main features of
venture capital are High Degrees of Risk, Equity Participation, Long
Term Investment, Participation in Management, Achieve Social Objectives,
Investment is liquid.
- Generally there are
three types of organised or institutional venture capital funds: Venture
capital funds set up by angel investors; venture capital susbsidaries of
corporation; and private venture capital firms/funds. Venture capital
subsidaries are established by major corporations, commercial bank
holding companies and other financial institutions.
- Most venture capital
funds have a fixed life of 10 years, with the possibility of a few years
of extensions to allow for private companies still seeking liquidity.
The investing cycle for most funds is generally three to five years,
after which the focus is managing and making follow-on investments in an
existing portfolio.
- Most venture capital
firms are interested in investment projects requiring an investment of
$250,000 to $1,500,000. Projects requiring under $250,000 are of limited
interest because of the high cost of investigation and administration;
however, some venture firms will consider smaller proposals, if the
investment is intriguing enough.
- Different venture
groups prefer different types of investments. Some specialize in seed
capital and early expansion while others focus on exit financing.
Biotechnology, medical services, communications, electronic components
and software companies seem to be attracting the most attention from
venture firms and receiving the most financing. Venture capital firms
finance both early and later stage investments to maintain a balance
between risk and profitability.
- A classic angel and
venture capital boom was in the making. As the dollar volume of the
industry grew in size, the number of venture capital firms increased
accordingly. The number of venture capital firms rose from 458 to over
1000.
- Many U.S. and other
foreign investors are evaluating alternatives for investments into
software development, business process outsourcing, drug discovery and
other tech and non-tech companies based in India. In the IT, life
sciences and related sectors, many U.S. and India venture capitalists
still make early stage investments into a U.S. company which has a
subsidiary in India for fulfillment.
- Some Indian
state government funds are actively investing in India. These include
SIDBI Venture Capital Limited, Gujarat Venture Fund Limited, RVCF,
APIDC, Canbank Venture Capital Fund Limited, IFCI Venture Capital Funds
Limited, Rajasthan Asset Management
Co. Private Ltd., KITVEN and
Kerala Venture Capital Fund Private Limited. Investments from these
institutions have the advantage of lower ‘cost’ of capital and hence can
be more attractive to entrepreneurs; however, the maximum amount of
capital available is typically $500,000. |
General Information
- Venture
Capital
- Venture Capital
Funds
- Venture Capital's
New Adventure
- Venture Capital -
Theoretical Concept
- Use of a Venture
Capital
- Venture
capital - Info
Venture Capital Market
- The US Angel and
Venture Capital Market: Recent Trends and Developments
- China’s venture
capital market
- The European Venture
Capital Market
- Indian venture capital market grew despite global
slowdown
- Venture Capital
Investment in Indian Market
- Venture Capital,
Innovation and Entrepreneurship in Emerging Markets
- Venture Capital
Action Agenda Situation Today and Tomorrow
- Global Trends in
Venture Capital 2007 Survey
- Is the Venture
Capital Market in India Getting Overheated?
- A study of New
Zealand’s venture capital market and implications for public
policy
Business Plans
- Business Plan
Template
- Promoting Venture
Capital Business in Egypt
- Establishing
Nontraditional Venture Capital Institutions
- Guide for
Business Plan writing
- A Venture Capital
Primer for Small Business
- How to get
Registered as a Venture Capital Fund ?
- Essential areas to
cover in your business plan
- Venture Capital
Business Plan Outline
- What really matters
to venture capitalist?
Venture Capital Investment
- Informal Venture
Capital Investment in Atlantic Canada
- Venture Capital
Investments in China
- Improving Incentives
for Venture Capital Investment
- Venture Capital
firms invest $130-M in India during Q1 2007
- A New Venture
Capital Fund Investing in Web 2.0
- Capital Raising –
Raising a Fund?
- Structuring Venture
Capital Investments
- Trends in Venture
Capital
Funding in the 1990s
- Venture Capital
Investment in the United States 1995-2002
Company Profiles
- Company in
Mumbai
- Company in
California
- Company in
Delhi
- Company
in Massachusetts
- Private Venture
Capital Sources
- Another Company in
Mumbai
- Venture Capital
& Private Equity Resources
- Company in
Australia
- Company in New
York
Venture Capital
Process and Operations
- What does a Venture
Capitalist look for?
- Fundamentals of the
Venture Capital Process
- Investment
Process
- Three Keys to
Obtaining
Venture Capital
- The Venture Capital
Process
- Venture Capital -
Process
- How Does the VC
Industry Works
- How Venture Capital
Works
Venture Capital Cost
- The Economic Impact
of Venture Capital
- How Expensive is
Venture Capital ?
- The Indirect Cost of
Venture Capital in Canada
- Venture Capital
Funding is Expensive
- The True Cost Of
Venture Capital
|
Venture Capital in India
- 2006 Update to
Structuring Venture Capital and Other Investments in India
- An Update on
Structuring Venture Capital and Other Investments in India
- Venture Capital and
Innovation: The Indian Experience
- Incubation
& Financing of IT Start-Ups
- Venture Capital
& Private Equity in India
- Creating an
Environment:
Developing Venture Capital in India 2001
- Creating an
Environment: Developing Venture Capital in India 2002
Guidelines
- Venture Capital
Negotiations
- A guide to Venture
Capital
- Venture Capital
Valuation Guidelines
- A Practical Guide to
Venture Capital Funding for Early Stage Companies
- A Guide To Venture
Capital Term Sheets
- Guide to Obtaining
Tax Relief on Venture Capital Trusts
Policies and
Regulations
- Venture Capital
Policy Review : Canada
- Better
Canadian
Policy for Venture Capital
- The Development of
Venture Capital in Europe - The Role of Public Policy
- Venture Capital
Policy in Israel
- Public Policy and
Venture Capital Backed Innovation
- Regional Venture
Capital Policy UK and Germany Compared
- Rules and
Regulations for Certification as a “Qualified Business Entity” or a
“Certified Venture Capital Partnership”
- The Venture Capital
Trust Regulations
- Public Policy and
the Creation of Active Venture Capital Markets
Projects and
Consultants
- Equity's Capital
Investment in China's Efficiency Sector
- The Evaluation of
Venture Capital As an Instalment Option
- Consultant in
California
- Consultant in
London
- Consultants
- Consultant in New
York
- Consultant in
Florida
- Consultant in
Connecticut
- Consultant in USA
- Another Consultant
in Florida
Reports
- Venture Capital
Report 2006
- Accessing Venture
Capital in India
- India Venture
Capital Report
- SBI Capital Markets
Limited (SBICAP) ties-up with Japan’s SOFTBANK INVESTMENT
- The Greater
Cleveland Venture Capital Report
- New Kids
Arrive
On the Venture-Capital Block
- Budget Proposals
regarding the Venture Capital industry
- The Venture Capital
Investment Bust
- Executive summary
about Venture Capital
- Working group on
venture capital
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