VENTURE CAPITAL FINANCING

Paper Code: 
MIV 326
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Course Outcomes

Learning                                and teaching strategies

Assessment Strategies

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

 

CO 1: Understand the basic framework of Venture capital, funding process and Stages of Financing

 

CO 2: Acquire knowledge of various models of financing venture including angel Investing

CO 3: Comprehend the need of Private equity

financing

CO 4: Implement the process of Private Equity Financing

CO 5: Understand the regulatory mechanism of Venture Capital & Private Equity

CO 6: Identify the relevance of investment market

Approach                               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
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: 

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: 

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: 

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.

 

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

 

Essential Readings: 

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

 

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

 

References: 
E-RESOURCES:

 

JOURNALS:
  • Venture Capital: An International Journal of Entrepreneurial Finance

 

Academic Year: