Venture Capital Financing

Paper Code: 
MIV 323
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Course Objective:

The Objective of this course is to acquaint the participants with the concepts of venture capital financing.

 

Course outcomes: On completion of this paper/course student will:

 

Course

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

MIV 323

Venture  Capital Financing

 

CO 117: Understand the basic framework of Venture capital, funding process and Stages of Financing

 

CO 118: Acquire knowledge of various models of financing venture including angel investing

CO 119 Comprehend the need of Private equity financing

 

CO 120: Implement the process of Private Equity Financing

 

CO 121:  Understand the regulatory mechanism of Venture Capital & Private Equity

 

CO 122:  understand the modes of  entry and exits in Indian context

 

Approach in teaching:

Interactive Lectures using whiteboards, Discussion, Tutorials, Reading assignments, Demonstration, Team teaching, Quiz.

 

Learning activities for the students:

Self learning assignments, Effective questions, Solving problems of unsolved questions, Problem based learning-cases, Group learning teamwork, Giving Tasks.

 

 

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects

 

12.00
Unit I: 
Unit I

Meaning and definition of venture capital, features of venture capital, Venture capital funding process, Structure of venture capital firms, need of venture capital

Dimensions of venture Capital, Stages of Financing offered in venture Capital, types of financing, advantages and disadvantages of venture capital, Venture Capital Process

 

12.00
Unit II: 
Unit II

Meaning of Angel- Choosing an Angel- Features of Angels- TIE (The IndUS Entrepreneurs).

Modes of Venture Capital Financing- Company- Trust- Limited Partnership- Comparative analysis of different modes of Venture Capital Financing Venture Capital Assistances and Schemes in India and Abroad.

 

12.00
Unit III: 
Unit III

Strategies of Private Equity – leverage Buyout – growth capital – mezzanine capital – distressed debt – other Strategies –

Size and performance and economic environment of Private Equity global context – PEPI and Fund Indices – Private Equity in India an overview – Due Diligence – Procedure and challenges – Due diligence in emerging Private Equity Market –investing in  developing market – past performance and strategy

 

12.00
Unit IV: 
Unit IV

Regulation of Venture Capital and Private Equity – Business Cycle of PE – Structure of VCPE firms – Limited liability partnerships - Routes of VCPE investments in India - Valuation approaches – risk and return – analysis of funds – conventional method – revenue multiplier method

 

12.00
Unit V: 
Unit V

Modes of Exits in Indian Context and Challenges involved – IPO-Promoter Buyback – Sale to other PE Funds – Sale to other strategic Investor – Stake Swap – M&A’s –open market – Secondary Market

 

Essential Readings: 
  • Khan M.Y. "Financial Services", Tata MC Graw Hill Co. Ltd., New Delhi
  • J.C. Verma., Venture Capital Financing in India, Response Books Entrepreneurial Finance (Fifth Edition) by Leach and Melicher. Cengage Learning.
  • Chary, T. Satyanaryana, Venture Capital , Delhi Macmillan India 2005
  • Venture capital, Hyderabad The ICFAI University Press 2004 . x, 165p 23 cm
  • Verma, J. Venture Capital Financing in India , New Delhi Response Books 1997
  • Pandey, I. Venture Capital:Indian experience, New Delhi Prentice-Hall of India Pvt.Ltd. 1996
  • Verma, J. Venture Capital Finanacing in India , New Delhi Response Books 1999
  • Caselli, Stefano Venture capital : A Euro-system approach , Berlin Springer Verlag 2004
  • The oxford handbook of venture capital , New York: Oxford University Press; 2012 .
  • Vandana Panwar, Venture capital funding 01 Edition ,Neha Publishers & Distributors,2010

 

ACADEMIC YEAR: 
2021-2022
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