Venture Capital Funding

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

Course Outcomes (COs):

Course Outcomes

Learning and teaching strategies

Assessment Strategies

On    completion   of    this        course,          the students will be able to:

CO 120: Understand the basic framework of Venture capital, funding process and Stages of Financing.

CO 121: Acquire knowledge of various models of financing venture including angel Investing.

CO 122: Comprehend the need of Private equity financing.

CO 123: Implement the process of Private Equity Financing.

CO 124: Understand the regulatory mechanism of Venture Capital & Private Equity.

CO 125: Identify the relevance of investment market

IApproach in teaching:

 Interactive Lectures using whiteboards, Discussion, Tutorials, Reading assignments, Demonstration, Team teaching, Short Quiz consisting of numerical problems

Learning activities for the students:

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

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

 

12.00
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

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

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

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

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: 

*Case studies related to entire topics are to be taught.

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

 

References: 

SUGGESTED READINGS:

  • 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

E-RESOURCES:

JOURNALS:

  • Venture Capital: An International Journal of Entrepreneurial Finance

 

ACADEMIC YEAR: