Friday, January 2, 2009

Venure Capital Wikipedia

Venture Capital India :

Aim is to find & fund business having high growth potential. Exit opportunity within 3-7 years should be available. Funds typically have a cycle of 10 years.

Jobs like limited partner, associate, Entrepreneur-in-residence (EIR), Principal etc

Compensation :Management Fees :& Carried interest

Venture capital funding

Idea generation; Start-up; SIX stages of Funding
  • Seed Money: Low level financing needed to prove a new idea (Often provided by "angel investors")
  • Start-up: Early stage firms that need funding for expenses associated with marketing and product development
  • First-Round: Early sales and manufacturing funds
  • Second-Round: Working capital for early stage companies that are selling product, but not yet turning a profit
  • Third-Round: Also called Mezzanine financing, this is expansion money for a newly profitable company
  • Fourth-Round: Also called bridge financing, 4th round is intended to finance the going public process


India

The investment of capitalists in Indian industries in the first half of 2006 is $3 billion and is expected to reach $6.5 billion at the end of the year. Most VC firms in India are either divisions or subsidiaries of Silicon Valley funds. They are primarily centered in Bangalore and Mumbai. Some VCs also operate from Delhi and other parts of the National Capital Region.

( http://en.wikipedia.org/wiki/Venture_capital )



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