a leading venture capital company in india prepared by abhijith rajasekharan

Presented By:-

Abhijith R.S MBA departmentsLourdes Matha College of Science and Technology (LMCST) is located at Kuttichal. TVM, kerala

A LEADING VENTURE CAPITAL COMPANY IN INDIA.

CAPITAL Resources to start the enterprise.

Money, property, and other valuables which collectively represent the wealth of

an individual or business.

Fund employed in any business activity.

Most important factor for production.

No economic entity can function without capital.

VENTURE CAPITAL Venture Capital is “equity support to fund a new concepts that involve a

higher risk and at the same time, have a high growth and profit.”

Synonym of risky capital.

STAGES IN VENTURE CAPITAL

1. Seed Money:

Low level financing needed to prove a new idea. 2. Start-up:

Early stage firms that need funding for expenses associated with marketing and product development. 3. First-Round:

Early sales and manufacturing funds. 4. Second-Round:

Working capital for early stage companies that are selling product, but not yet turning a profit. 5. Third-Round:

Also called Mezzanine financing, this is expansion money for a newly profitable company. 6. Fourth-Round:

Also called bridge financing, it is intended to finance the "going public process”. The firm is mature and profitable, and often still expanding. 

FEATURES OF VENTURE CAPITAL Long term investment:

Lack of liquidity:

Since the project is expected to run at start-up stage for several years, liquidity may be a greater problem.

High risk return:

High-tech :

Wide scope:

Equity participation and capital gains:

Participation in management:

ADVANTAGES OF VENTURE CAPITAL

Economy Oriented… Helps in industrialization of the country. Helps in the technological development of the country. Generates employment. Helps in developing entrepreneurial skills.

Investor oriented… Benefit to the investor is that they are invited to invest only after company starts earning profit, so the risk is less and

healthy growth of capital market is entrusted. Profit to venture capital companies. Helps them to employ their idle funds into productive avenues.

Entrepreneur oriented… Finance - The venture capitalist injects long-term equity finance, which provides a solid capital base for future

growth. Business Partner - The venture capitalist is a business partner, sharing the risks and rewards.

DISADVANTAGES OF VENTURE CAPITAL

Lengthy and complex process (needs detailed business plan, financial projections and etc.

In the deal negotiation stage, you will have to pay for legal and accounting fees.

Investors become part owners of your business - founder loss of autonomy or control.

Lightbox Management Ltd is a  Mumbai based venture capital company specializing in early-stage investments. The company focuses on early stage consumer technology businesses. The company invests between $3 million and $5 million. The company has an investment horizon of seven to eight years. Sandeep Murthy, Sid Talwar, Prashant Mehta, Sunny Rao and Jeremy Wenokur are general partners of the firm,

where Sandeep Murthy is the current CEO of the company. VISION : “To be a true investment management firm” MISSION : The company is committed to support startup and early stage investment companies with a goal of

enhancing its strength through education, leadership development, and networking among investors.

Between 2012 and 2014, the partners were investing in tech companies in India. Separately and together, they invested in early stage startups such as Shop Clues and Embibe. They are also looking at technology driven solutions focussing unique opportunities.On 30 April 2014, the firm launched two funds to invest in the consumer technology in India. Lightbox Fund I acquired equity stakes in Green Dust, ZoomIn, MapmyIndia, Paymate, Future Bazaar and Kotak Solar. Lightbox Fund II was launched as a $90 million fund for a concentrated investment portfolio of eight companies in which it will invest $3 to 5 million in Series A funding with an investment horizon of 7–8 years.A month after the launch, Lightbox along with Kalaari Capital announced a $4 million investment to the company Embibe, founded by Aditi Avasthi.

In May 2014, Economic Times named Murthy in their list of 'India's hottest 40 under 40' business leaders.

On 13 October 2014, Lightbox announced the close of its second fund at $100 million ( 600 crores). ₹

Lightbox Ventures II was also awarded the VC Fundraiser of the Year at the VCCircle Awards 2015.

In the past six months, the company had found a good set of companies to invest in.The companies next investment would be in vertically integrated businesses where they

plan to on the entire chain

CURRENT PORTFOLIO

TEAM LIGHTBOX

METHODS OF VENTURE CAPITALING BY LIGHTBOX

Equity

Conditional loan

Income note

Other financing method

PROBLEMS FACING BY VENTURE CAPITAL Requirement of an experienced management team.

Requirement of an above average rate of return on investment.

Longer payback period.

Uncertainty regarding the success of the product in the market.

Questions regarding the infrastructure details of production.

Skills and Training required.

Time Period.

Interference in Business:

REMEDIES TAKEN FOR VENTURE CAPITAL

Reduce the rules and regulations of SEBI.

Investment made on development of management and employees through training,

improving skills.

Avoid venture capitalist in interference in Business activity.

Increasing market facilities.

Provide more infrastructure facilities.

THE END

Thank you…