This presentation provides an overview of the venture capital industry, its origins, evolution, and significance in today's economy. It acknowledges Georges Doriot, the "Father of Venture Capital," and discusses the impact of the 2007-2008 financial crisis on the industry. The presentation also delves into the history of venture capital in India, noting its inception in the late 1980s with the establishment of the first Indian venture capital firm, TDICI. It further explains the regulatory frameworks governing the industry. Venture capital is defined as a form of private equity and a type of financing provided by investors.
venture capital financing | venture capital history
1.
2. History
• Harvard Business School professor Georges Doriot is generally
considered the "Father of Venture Capital." He started the
American Research and Development Corporation in 1946 and
raised a $3.58 million fund to invest in companies that
commercialized technologies developed during WWII
• The corporation's first investment was in a company that had
ambitions to use x-ray technology for cancer treatment. The
$200,000 that Doriot invested turned into $1.8 million when the
company went public in 1955
3. Hit From the 2007-2008 Financial Crisis
• The VC industry was impacted by the 2007-2008 financial
crisis. Venture capitalists and other institutional investors, who
were an important source of capital for many startups and small
companies, tightened their purse strings.
• Things changed after the end of the Great Recession with the
emergence of the unicorn. A unicorn is a private startup whose
value is over $1 billion.5 These companies began attracting a
diverse pool of investors seeking big returns in a low-interest-
rate environment, including sovereign wealth funds (SWFs) and
major PE firms. Their entry resulted in changes to the venture
capital ecosystem.
4. History of VCs in India
• The venture capital industry began to take shape in India in the
late 1980s, with the formal establishment of venture capital
activities in 1988 when the Indian government granted legal
status to these initiatives.
• the first Indian venture capital firm, the Technology
Development and Information Company of India Ltd.
(TDICI), emerged as a 50/50 joint venture between ICICI and
UTI.
• his marked the early stages of venture capital financing in
the country.
5. • regulatory frameworks,
• such as the SEBI (Venture Capital Fund) Regulations, 1996,
and the
• SEBI (Foreign Venture Capital Investor) Regulations, 2000,
were put in place to govern the industry, facilitating its growth.
6. What is venture capital
• Venture capital (VC) is a form of private equity and a type of
financing that investors provide to startup companies and small
businesses that are believed to have long-term growth potential.
• Venture capital generally comes from well-off investors,
investment banks, and any other financial institutions.
• Venture capital doesn't always have to be money. In fact, it
often comes as technical or managerial expertise.
9. Process of venture capital financing
• https://blog.ipleaders.in/process-venture-capital-financing-india/
• Startups Funded: Flipkart, BabyOye, Freshdesk, Book My Show,
Zansaar, Probe,Myntra, CommonFloor.
