Project Reports on MBA Financing Venture Capital
Venture capital that provides finance to professionals World Health Organization invest adjacent direction in fashionable, ceaselessly nonheritable corporations that have the potential to transform specific business subscribers. investment square measure a primary origin of investment for start-up corporations.
Professionally managed risk capital corporations square measure non-public corporations or owned companies supported by non-public and public pension funds, endowment funds, foundations, organizations, affluent people, foreign investors, and also the venture capitalists themselves.
Venture Capital Financing Type
The three main types of venture capital financing are:
- Early stage financing
- Expansion financing
- Acquisition financing
Process Venture Capital Financing
Venture capital financing is usually done following six main steps, namely:
- Deal Origination
- Deal Negotiation
- Post Investment Activity
- Exit Plan
Origination of a deal is that the primary step in capital finance. one in all the foremost common sources of such origination is referral system.
Screening is that the method by that the plunger views all the comes within which he might invest.
The method of analysis may be a thorough process that evaluates not solely the project capability however conjointly the position of the entrepreneurs to satisfy such claims.
Deal negotiation may be a method by that the terms and conditions of the deal square measure therefore developed to form it dependent. each the parties advance their wants and the simplest way in between is wanted to settle the stress.
Post Investment Activity
The capitalist, however, doesn’t participate within the day to day procedures of the firm; it solely becomes concerned within the scenario of monetary risk.
The exit arrange is formed to form minimum wants and most blessings. The plunger could exit through IPOs, takeover by another company, purchase of the venture capitalists share by the promoter or associate outsider.
Advantages and disadvantages of venture capital financing
- The autonomy and management of the founder are lost because the capitalist becomes a section owner.
- The process is long and complex because it involves tons of risks
- The object and profit come capability of the investment is unsure
- The advances created supported long goals, therefore the profits come late
Main Goal of Project Reports :
The Main Objective of the project report is to understand regarding capital funding in India and sub-objectives area unit as follows :
- To understand whether or not capital funds offer any capital/services to existing firms.
- To understand that capital fund provides grain capital and growth capital.
- To understand that capital funds give capital to new business generally employment.
- To assume the capital role in offer management and promoting experience.
- To understand capital funding, its uses, and scope of activities.
- To understand the quality profit targets.