Category Archives: VENTURE CAPITAL FINANCING

Second Round Financing

Second Round Financing This represents the stage at which the product has already been bunched in the market but the business has not yet become profitable enough for public offering to new investors. The promoter has invested his own funds but further infusion of funds by the VCIs is necessary. The time scale for the investment is shorter than in the case of start-ups. The VCls provide larger funds at this stag

Start Up

Start Up This is the stage when commercial manufacturing has to commence. Venture capital financing here is provided for product development and initial marketing. The sense of this stage is that the product service is being commercialized for the first time in association with the several types of new projects such as (i) greenfield based on a relatively new, or high technology, (ii) new business in which the e

Early Stage Financing

Early Stage Financing This stage includes (i) seed capital pre-start-up, (ii) start-up and (iii) second round financing. Seed Capital This stage is essentially an applied research phase where the concepts and ideas of the promoter, constitute the basis of a project usually expected to end in a prototype which mayor may not lead to a business launch: This phase gradually moves toward, the development phase leadin

Selection of Investment

Selection of Investment The first step in the venture capital financing decision is the selection of investment. The point of the evaluation process by the venture capital institution (VCI) is the business plan venture capital undertaking (promoter). The appraisal is akin to the feasibility studies development finance institutions for grant of term loans and other financial assistance. In addition to the project

Features

Features Venture capital has, somehow, come to acquire various connotations. It is defined as an equity related investment in a growth oriented small medium business to enable investors to a cost corporate objectives, in return for minority shareholding in the business or the irrevocable to acquire it. Venture capital is a way in which investors support entrepreneurial talent with finance and business skills to

THEORETICAL FRAMEWORK

THEORETICAL FRAMEWORK Venture capital financing is emerging as a new institutional mechanism in the country. As a new technique of financing to in long term capital into the small and medium sections, it made notable contribution to growth in the developed countries, particularly in the US and the UK. The nascent venture capital industry in India can profitably draw upon their experiences. The theoretical aspe

VENTURE CAPITAL FINANCING

VENTURE CAPITAL FINANCING INTRODUCTION Venture capital institutions which emerged the world over to fill gaps in the conventional financial focused on new entrepreneurs, commercialization of new technologies and support to and medium enterprises in the manufacturing and the service sectors. Over the years, the of venture capital has undergone significant changes. The modus operandi has shifted technology oriented