A PRESENTATION ON WORKING OF

VENTURE CAPITAL IN INDIA

SUBMITTED TO: Ms. Esha Pandya

SUBMITTED BY: Jankhana Joshi

Chandni Pandya

Megha Shah

Khushbu Parekh

Shilpa Parmar

INTRODUCTION OF VENTURE CAPITAL Venture capital provides long-term,

committed share capital, to help unquoted companies grow and succeed. If an entrepreneur is looking to start-up, expand, buy-into a business, buy-out a business in which he works, turnaround or revitalize a company

Venture capitalists typically assist at four stages in the company's development:

Idea generation; Start-up; Ramp up; and Exit

FINANCIAL STAGES OF VENTURE CAPITAL Seed Money: Low level financing needed to prove

a new idea.

Start-up: Early stage firms that need funding for expenses associated with marketing and product development.

First-Round: Early sales and manufacturing funds

FINANCIAL STAGES OF VENTURE CAPITAL Second-Round:  for early stage

companies that are selling product, but not yet turning a profit

Third-Round:, this is expansion money for a newly profitable company

Fourth-Round: 4th round is intended to finance the "going public" process

PRACTICAL EXAMPLES OF VENTURE CAPITAL Example 1: Sandstone, Sequoia,

Madison Invest Rs 200 Cr in Micromax

Sequoia Capital is a private equity and venture capital firm specializing in incubation, seed stage, start-up stage, early stage, and growth stage investments in private companies.

Sandstone Capital, LLC is a privately owned hedge fund sponsor. The firm primarily provides its services to university endowments, public and private foundations, family offices, individual investors, and other institutions. It invests in public equity and hedging markets of India and the subcontinent.

Madison India Capital focuses on investment opportunities Indian media, communications and business services.

About Micromax:

The company has sold minority stake to three investors – Sequoia Capital, Sandstone Capital and Madison Capital Management, valuing the group to more than 440 million dollars.

EXAMPLE 2: IDG VENTURE INVESTS $3MN IN ONLINE FASHION RETAILER-ESHAKTI.COM About IDG Venture Capital: IDG Ventures investment portfolio

includes Apalya Technologies, Myntra Designs, iProf Learning, Sourcebits Technologies Pvt Ltd, Agile Financial and 3D Solid Compression Pvt. Ltd. Most recently, IDG Ventures invested $3Mn in Mobile Ad Network firm Vserv Digital Services.

IDG Ventures has invested $3Mn in online fashion retailer - eShakti.com Pvt Ltd for a minority stake.

ABOUT ONLINE FASHION RETAILER: Mumbai: Early-stage venture capital firm IDG

Ventures India has invested $3 million in eShakti.com Pvt. Ltd, an online Western fashion retailer in the US, for a minority stake.

Chennai-based eShakti, which makes customized, designer clothes for women, started exports to the US in 2008. It plans to use the money to scale up operations, add new product lines and also cater to Indian consumers.

EXAMPLE 3: NEXUS, LIGHTSPEED INVEST IN HANDICRAFT PORTAL-CRAFTSVILLA.COM

About Nexus: Nexus are India's leading Venture Capital fund. It

invest in early and early growth stage companies across sectors.

There partner companies have access to the entire Nexus team in India and Silicon Valley for help in recruiting talent, forging new alliances, opening doors to new customers, shaping the strategy and connecting with best of breed advisors or board members.

ABOUT LIGHTSPEED: Lightspeed manages over $2 billion of committed

capital and invests across the U.S., China, India, and Israel. We are currently investing out of Lightspeed VIII, an $800 million fund raised in early 2008.

About Handicraft Portal:

Handicraft and natural product e-commerce portal - craftsvilla.com has raised early stage funding from Nexus Venture Partners and Lightspeed Venture Partners. The company will use the funds to expand operations within India as well as overseas in the US, the UK, Germany and Japan.

About Handicraft Portal: Handicraft and natural product e-commerce portal

- craftsvilla.com has raised early stage funding from Nexus Venture Partners and Lightspeed Venture Partners. The company will use the funds to expand operations within India as well as overseas in the US, the UK, Germany and Japan.

EXAMPLE 4: INTEL CAPITAL ANNOUNCES INVESTMENTS IN SIX TECH STARTUPS About Intel Capital:

At Intel Capital, they only succeed there portfolio of companies succeeds. That’s why we do everything we can to ensure a positive return. We lead the majority of investments, participate on boards, and collaborate with the investment community at large.

Portfolio companies of Intel include Noida-based Wortal Technologies that runs local events portal BuzzInTown, Pune-based Persistent Systems, Infrasoft Technologies and KLG Systel.

About Six Tech: Intel Capital is investing $20Mn in six tech

companies in India. Six tech company want investment at initial base,

so the Intel company is investing at the early stage in Six Tech company.

Six Tech Company is an software company.

Thank you….