What is Venture capital with relevant examples

2. Introduction
• Venture capital is a form of private equity financing that is
provided by venture capital firms or funds to startups, early-
stage, and emerging companies that have been deemed to
have high growth potential or which have demonstrated high
growth. Venture capital generally comes from well-off
investors, investment banks and any other financial
institutions.

3. What are Venture Capital Firms?
• When a group of investors creates a fund to invest in various businesses that are
too risky for a bank to provide any loan, they are called a venture capital firm. As
the enterprises are risky, the firm gives loans on the high-interest rate to the
business.
• The firm sometimes creates a profile of its investments and invests in companies
that match the pattern. This way, the venture capital makes an investment a little
risky as they know the type of problem faced in that particular market. Venture
capital firm invests money in the potential business, and the company pays the
loan in various ways.

4. Features of Venture Capital Firms
It’s a high-risk investment that is made to make high-profits
The investment made is usually based on long-term financial goals
The investments are made in startups which have a high-growth
potential
The investment is made by buying equity shares in the startup firm
Investments are usually made in innovative projects in the fields of
technology & biotechnology.

5. Process of Venture Capital Funding
The origination of deal
Screening process
Evaluation of firm and founders
Deal negotiation
Post investment activity
Exit plan

6. Top 10 Venture Capital Firms in India
The platform has released its TimesNext
Startup Accelerator Program under
which it will be giving unique early-
stage startups in their ideation and
conception phase an opportunity to bag
a startup funding of up to Rs 10 lacs.

7. Sequoia Capital
Sequoia Capital is an American firm founded in 1972 by
Don Valentine. Sequoia also has its operations in India
and Israel. In 2005 Sequoia expanded to China and
established Sequoia Capital China. In 2006 West bridge
Capital Partners was acquired by Sequoia Capital and
later named Sequoia Capital India.
The firm invests mostly in the internet, health, and
financial services. Its investments range from $1 million to
$ 100 million depending on the stage of development of
the business. The firm has successfully invested in Google,
Apple, Paypal, Whatsapp, Just Dial, etc. The value of
investments of the firm is $500 million to $ 1 billion.
A few of its top-funded startups include:
•DailyHunt
•Bira91
•1mg
•Awfis

8. Helion Venture Partners
Helion Venture Partners was founded in 2006 by Rahul
Chandra, Ashish Gupta, Sanjeev Aggarwal, and Kanwaljit
Singh with its office in Bangalore and Gurgaon. The firm
focuses on the Indian market and invests in businesses at
their seed stage. The company has focused mostly on
technology, but it also invests in environmental and
education ventures.
The company has created funds of $140 million, $ 210
million, $255 million, and $300 million in 2006, 2008, 2012,
and 2015 respectively. In 2012, Economic Times addressed
the firm as the largest domestic venture capital firm. The
company invests $10 million in a company with a revenue
generation of less than $ 10 million in its early stage.
The company has invested money in ventures such
as MakeMyTrip, YepMe, PubMatic, Red Bus, etc.
A few of its top-funded startups include:
• BigBasket; BlueStacks; RedBus; Toppr

9. Accel Partners
Accel Partners or Accel is a venture capital firm based in
America. It was founded in 1983 by Arthur Patterson and
Jim Swartz. The company’s investment philosophy is based
on the quote, “Chance Favors Prepared Minds.” The firm
invests in information technology, the internet, mobile,
media, and other domains. In 2001 Accel expanded its
operations in London to enter the European market. In
Europe, it invested in BlaBlaCar, Spotify, Supercell, etc.
The firm has raised $2 billion in 2016; it raised $450 million
separately for the Indian market after raising $350 million
in 2014. The firm has successfully invested in Flipkart, Baby
Oye, Myntra, Book My Show, etc.
A few of its top-funded startups include:
•Swiggy
•Ola
•Blackbuck
•Cure.fit

10. Nexus Venture Partners
Nexus Venture Capital invests in new businesses in India and the USA. The company provides
investment as well as team building and strategic guidance to its entrepreneurs. Nexus invests in
business that can grow into standalone companies, new ideas, large firms with potential for
growth. The company spends $500k to $10 million in the early stages; the investors prefer seats
on the board of the company spent. The firm does not believe in taking over the firm, they
become a part of it.
The successful investments of the firm are Delhivery, Snapdeal, Komli, etc. A few of its top-
funded startups include:
•Zomato; Snapdeal; Delhivery; Goodera

11. Intel Capital India
Intel Capital is a part of Intel Corporation; it invests in risky ventures which have the potential to become
successful businesses. It was founded in 1991 by Avram Miller and Les Vadasz. It invests in hardware, software,
data center, and cloud domains. By 2012 Intel Capital has invested $12.5 billion in 1550 companies in 57
countries. Intel Capital has offices across the world including, Brazil, China, India, Germany, Ireland, etc. In
total there are 26 offices in the world. Intel Capital can invest from $1 million to $100 million depending on the
venture. It has invested in companies like Hungama, Snapdeal, etc.
A few of its top-funded startups include:
•Yatra
•Hungama
•Helpshift
•Indiamart

12. Blume Ventures
Blume Ventures is an Indian based venture capital
firm that invests in Digital media, Mobile, and
internet services. Blume Ventures was established in
2010 and is located in Mumbai. It can provide
funding of 100 crores for 2.5 years. It has
successfully invested in Exotel, Printo, etc.
It has won designated 2nd seed investor by
Economic times, Number one Active investor by CB
Insights, and many more.
A few of its top-funded startups include:
•Unacademy
•Grey Orange
•Dunzo
•Purplle

13. Inventus Capital Partners
Inventus Capital India was founded in 2008 and has contributed largely to the technology domain. The company
raised two funds, one in 2008 and the other in 2013. The third fund was raised after restructuring the firm. The
firm predominantly invests in Indian and US markets.
It invests in Business to Business and Business to Consumer model firms. It provides funding of $2 million to $10
million. Some successful investments of the firm are Savaari, PoshMark, and Policy Bazaar, etc.
A few of its top-funded startups include:
Playshifu
•KoinEarth
•RedBus
•Savaari

14. IDG India Ventures
IDG ventures or International Data Group was
established in 1996 in California. In the 2000s, IDG
spread its operation across India, Vietnam, and
Korea. IDG had funds in Europe, although it
currently does nor operates there. In 2017, IDG
Capital acquired the International Data Group.
The company provides investments of $1 million to
$10 million. IDG Ventures is worth $4 billion today.
Its successful investments in India are
Yatra.com, Myntra, Ozone, etc.
A few of its top-funded startups include:
•Nestaway
•Manthan
•Myntra
•Newgen

15. SAIF Partners
SAIF Partners is a venture capital firm based in Asia. It has offices
across Asia, such as Hong Kong, China, and India. It was founded in
2001 as the Softbank Asia Infrastructure Fund. It raised $400 million
with Cisco and Softbank being the only partners. The members of
Softbank Asia Infrastructure started SAIF capital in 2004.
SAIF has offices in Beijing, Xiamen, Hefei, and many other cities
across China. The company invests in Consumer, Education, Finance,
Healthcare, Industrials, Internet, IT Services, Logistics, Mobile, SaaS,
etc.
In India, SAIF has offices in Bengaluru and Gurugram. It has
successfully invested in BookMyShow, Just Dial, Paytm, Home Shop
18, Make my trip, etc. It raised a fund of $350 million for Indian
Investments. It invests $5 million to $ 35 million in the early stages of
the company.
A few of its top-funded startups include:
•BookMyShow
•ClearTax
•FabAlley
•FirstCry

16. Bessemer Venture Partners
Bessemer Venture Partners, also known as Bessemer, is a venture capital
firm founded in 1911 by Henry Phipps. It started as Bessemer Securities; in
1972, it expanded its operations and became Bessemer Venture Partners. In
1985 the Boston office of the company was established. The firm has $5
billion of a fund under its name and invests globally. It expanded to India in
2003.
In 2018 the company entered the machine learning market and started a
fund for Applying machine learning to health. In 2018 It raised a fund of
$1.85 billion.
Bessemer Venture Partners invests in early and growth stage of companies of
the technology domain. The company predominantly invests in consumer,
enterprise, and healthcare sectors. It has successfully invested in LinkedIn,
Shopify, Skype, Box, DocuSign, Pinterest, etc. In India, it has invested in
Snapdeal, Motilal Oswal, etc.
A few of its top-funded startups include:
•Shippo
•HelloRelish
•Previse
•Choco