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Category Archives: Venture Capital

Know Your Venture Capitals Before Considering Them – A Plausible Approach to Seek Funding from Venture Capitals

  Typically, start-ups turn to venture capital firms when their business start to show signs of growth.  As opposed to angel investing, VCs can provide funding in higher amount which is desirable to start-ups during the expansion stage.  Because investing in start-ups is characterized with higher amount of risk for capital providers than an already established firm, VCs require higher returns for the higher risk assumed. The Right Fit Before approaching the VCs, one must have the Read more [...]

Venture Capital Activities in the First Quarter of FY16 – How did Venture Capital Market Shape up in Different Regions of the World?

In the first quarter of 2016, the reported size of the deals stood at US$25.5 billion with investment across 1,829 deals. Macro-economic concerns across large markets, rising skepticism regarding the actual growth potential of the highly valued start-ups, and uncertainty regarding the public offering remained the major drivers of the reported decline in the venture capital activities around the world. The decline was primarily led by lower seed funding across the world. Some of the major developments Read more [...]

Global Venture Capital Investments Touching New Heights in 2015 with $128.5 B Worth VC Backed-up Ventures – Trends and Major Industry Ventures

Venture Capitals are showing great interest to invest on startups and established businesses around the globe.  Worldwide, venture capitals had invested US$128.5 billion in 2015. The figure comparison of venture investments for the years 2014 and 2015 clearly shows that the investment scenario is booming.  We can see that there was 44% increase in the investments made from VCs, and VCs have raised US$89 billion in 2014, which was further increased to US$128 billion in 2015.  The annual Read more [...]

How to Prepare a Balance Sheet for Business Plan

Before getting started, it is important to understand the purpose of creating financial statements. The primary objective of any financial statement is to communicate and provide an overview of the current state of a business. The most commonly prepared financial statements for a small business are balance sheets, income statements and cash flow statements. A balance sheet is a summary of what the business owns (assets) and owes (liabilities). It paints a reliable picture of the financial health Read more [...]

Electric Car Solutions, Strategies and Its Future

Today electric cars make up a very small part of the overall car market. While the size of the global car market is around 85 million cars a year, the electric cars make up much less than 1%. What are the reasons for the low market share and why the electric cars are not picking up momentum? We examine the issues and possible solutions for this market. Hurdles faced by the electric cars Most of the time, the issues surrounding the electric car market seem to be revolving around the customer’s Read more [...]

What are the Tax Benefit Options for Venture Capital Funds in India? How Venture Capitalists can Benefit from India Tax Rules?

Venture Capital firms, generally known as VCs are benefited by manner of tax exemptions.  Internationally, VC Funds are treated as pass through vehicles which helps to eliminate income tax at the pool level.  A pass through status is desirable for all funds because their IRR will be higher as the sale proceeds can be passed on to the investors without payment of any taxes.  The final recipient needs to pay income tax and the intermediary body is exempted.  This is to avoid double taxation of Read more [...]

Overview of Venture Capital Investments in India, 2012-14: Will More Venture Capitalists Invest in 2014?

The Venture Capitalists are active once again in India.  After a brief lull in the recent past, there are indications of higher investment activities in the coming days.  The VC market witnessed a decrease in investment in the year 2012 compared to the previous year.   It was reported that there was 7.2% decline in investment in 2012 compared to the previous year.  Details of the investment of venture capital firms in India are as follows,   2012 2011 Total investment $762 million $1,094 Read more [...]

What are the Tax Benefit Options for Venture Capital (VC) Funds in India? How Venture Capitalists can Benefit from India Tax Rules?

Venture Capital firms, generally known as VCs are benefited by manner of tax exemptions.  Internationally, VC Funds are treated as pass through vehicles which helps to eliminate income tax at the pool level.  A pass through status is desirable for all funds because their IRR will be higher as the sale proceeds can be passed on to the investors without payment of any taxes.  The final recipient needs to pay income tax and the intermediary body is exempted.  This is to avoid double taxation of Read more [...]

Venture Capitalists & Funding: Basic Lifeline for New Startup, About VC Funding

A venture capital fund is a financial capital fund provided to early-stage, high growth potential startup companies by venture capital firms.  Finance professionals manage the pool of venture capital funds on behalf of the investors.  The venture capital fund is a pooled capital investment from institutions, corporates and individuals.  Venture capital funding can also be provided to the startup companies by individuals directly.  These professional investors are known as venture capitalists; Read more [...]

Venture Capital Firms in India – Profile of India centric Venture Capital Firms and Fund Capping

Venture Capital Firms in India – Profile of India centric Venture Capital Firms and Fund Capping Indian venture capital firms being small in size a few years back have grown over a period of time. India has quite a few VC firms which are large in size, with larger number of professional employees. Venture Capital firms are experimenting with different types of businesses, and are willing to take huge risks. They invest in sectors like Internet, Ecommerce, Infrastructure, Consumer services, Mobile Read more [...]