Escolar Documentos
Profissional Documentos
Cultura Documentos
INDEX
1 INTRO
2 HISTORY
3 CHARACTERISTICS
4 ADVANTAGES AND DISADVANTAGES
5 TYPES OF FUNDING
6 HOW DOES VC WORK?
7 DIFFERENCE BETWEEN VC,ANGEL INVESTOR & PRIVATE EQUITY
FIRMS.
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investment bank, or insurance company that makes investments on behalf clients
of the parent company or outside investors. In any case, the VC aims to use its
business knowledge, experience and expertise to fund and nurture companies that
will yield a substantial return on the VCs investment, generally within three to
seven years.
i)
ii)
A sale of the company to a strategic investor,
usually a large and well-established technology company.
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TYPES OF FUNDING
The first professional investor to a deal at the start-up
stage is referred to as the Series A investor. This
investment is followed by middle and later stage funding
the Series B, C,and D rounds. The final rounds include
mezzanine, late stage and pre-IPO funding. AVC may
specialize in provide just one of these series of funding, or
may offer funding for all stages of the business life cycle.
Its important to know the preferences of the VC youre
approaching, and to clearly articulate what type of
funding youre seeking:
1. Seed Capital. If youre just starting out and have no
product or organized company yet, you would be seeking
seed capital. Few VCs fund at this stage and the amount
invested would probably be small. Investment capital
may be used to create a sample product, fund market
research, or cover administrative set-up costs.
2. Startup Capital. At this stage, your company would
have a sample product available with at least one
principal working full-time. Funding at this stage is also
rare. It tends to cover recruitment of other key
management, additional market research, and finalizing
of the product or service for introduction to the
marketplace.
3. Early Stage Capital. Two to three years into your
venture, youve gotten your company off the ground, a
management team is in place, and sales are increasing.
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BETWEEN
VC,ANGEL
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VENTURE CAPITALISTS
Like angels, venture capitalists (VCs) invest in people,
products, and ideas. While the media is full of stories
about venture capitalists investing in startups, the truth is
that VCs seldom actually do. Typically, their role comes at
a later stage after seed-funding has been satisfied.
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an
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SEBI regulations
Main requirements under SEBI (Venture Capital Funds)
Regulations, 1996:
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(i)
memorandum of association has as its main
objective, the carrying on of the activity of a venture
capital fund;
(ii)
it is prohibited by its memorandum and articles of
association from making an invitation to the public to
subscribe to its securities;
(iii)
its director or principal officer or employee is
not involved in any litigation connected with the
securities market which may have an adverse bearing on
the business of the applicant;
(iv)
its director, principal officer or employee has
not at any time been convicted of any offence involving
moral turpitude or any economic offence.
(v)
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(i)
the instrument of trust is in the form of a
deed and has been duly registered under the provisions
of the Indian Registration Act, 1908 (16 of 1908);
(ii)
the main object of the trust is to carry on the
activity of a venture capital fund;
(iii)
the directors of its trustee company, if any, or
any trustee is not involved in any litigation connected
with the securities market which may have an adverse
bearing on the business of the applicant;
(iv)
the directors of its trustee company, if any, or
a trustee has not at any time, been convicted of any
offence involving moral turpitude or of any economic
offence;
(v)
(i )
it is set up or established under the laws of the
Central or State Legislature.
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(ii)
the applicant is permitted to carry on the
activities of a venture capital fund.
(iii)
(iv)
the directors or the trustees, as the case may
be, of such body corporate have not been convicted of
any offence involving moral turpitude or of any economic
offence.
(v)
the directors or the trustees, as the case may
be, of such body corporate, if any, is not involved in any
litigation connected with the securities market which may
have an adverse bearing on the business of the applicant.
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3.
4.
Whether
whole
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5. Whether any winding up orders have been passed against the applicant
or the intermediary
6.
Whether any orders under the Insolvency Act have been passed
against the applicant or any of its directors, or person in management
and has not been discharged.
7.
8.
9.
9.
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10. (a) Details of registration of your company/associate/group companies
(to be given separately), which are registered/ required to be registered
with Reserve Bank of India (RBI) as a Banking company or Non Banking
Finance Company or in any other capacity andaddress(es) of concerned
branch office(s) of RBI.
(b) Details of disciplinary action taken by RBI against you or any of your
group/associate companies. Please also inform us in case there is any
default in repayment of deposits by you or any of your group / associate
companies.
Applicant can submit no objection certificate from RBI for getting registered
with SEBI, to expedite the registration process.
Other Documents to be submitted to SEBI
1)
2)
Executed
applicable.
3)
4)
An undertaking to the effect that the fund will not enter into any
venture capital activity if it fails to raise a commitment of at least Rs.
five crore as required under Regulation 11(3) of SEBI (Venture
Capital Funds) Regulations, 1996.
5)
6)
Undertaking that the venture capital fund will not make investment
in any area listed under Third Schedule to SEBI (Venture Capital
Funds) Regulations, 1996.
copy
of
Investment
Management
Agreement,
if
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7)
Venture Capital Fund shall disclose the duration/ life cycle of the
fund.