A Critical Study Of Pre And Post Investment Relationship Between Venture Capital Firm And Its Investee Companies

Abstract

Capital market today presents a set of financing choices that is broader and More complex newlinethan it was before in the past. It includes a broad spectrum of obtaining loans from newlinecommercial banks, financial institutions, factoring, leasing, hire purchase, mutual funds, newlinesupplier financing, securitization, merchant banking and the Venture Capital Financing. Of newlinethem all Venture Capital Financing, a unique and innovative concept that has recently made newlineits appearance in the world of finance is considered to be more attractive and vital as it is a newlinecritical resource for supporting innovative knowledge-based ideas and technology. This new newlinefinancial service of the 20th century has made significant contribution to the technological newlineinnovation and promotion of entrepreneurship world wide. With the passage of time venture newlinecapital have scaled astral heights. During January-September 2015, 323 deals were inked, newlineenticing an investment of $1.4 billion. According to data from Venture Intelligence, a newlineresearch company, investments made in first nine months of 2015 have surpassed the newlineprevious historical high of $1.2 billion (304 deals) recorded in whole of 2014. Investments of newlineprivate equity in India touched a record high of $16.8 billion on 2015 (across 661 deals), 16% newlinehigher than the previous high of $14.5 billion (across 529 deals) recorded in 2007 and a newlinemassive 50% higher than the $11.2 billion (across 530 deals) invested during the previous newlineyear. The rise was led by continued substantial investments in consumer targeting internet newlineand mobile services companies that accounted for approximately $5.3 billion or 31.5% of the newlineinvestment pie during the year. Some of the key highlights of 2015 were- 44 investments of newlinemore than $100 million (compared to merely 19 investments in 2014); IT and ITES companies newlinereceived 45% of the investment pie at almost $7.5 billion (across 386 deals); Investments in newlineBFSI crossed Healthcare and Life Sciences and Buyout deals surge to 18% of the value pie newline(compared to just 6% in 2016) newlineIndia is on the threshold of h