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 history if any track record of the entrepreneur, market poren and projections of future turnover profitability and so on it also covers a review of the threats from technological obsolescence competing technologies and preliminary views ferred exits.
The selection of the investment proposal includes stages of financing evaluate deals and the financial instruments to structure a deal.
Stages of Financing
The Section of investment by a VCI is closely related to the stages of investment. From analytically angle the different stages of investments are recognized and regards the same scale risk perceptions and other related characteristics of the investment process of the VCIs. The stages 0f financing as differentiated the venture capital industry, broadly fall into two categories: (a) early stage, and (b) later stage.