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Veer Capital Private Equity & Venture Capital Group
WE FACILITATE HAND SHAKE AMONG MATCHING ENTERPERNUER WITH SUITABLE PE/VC.
We being in the business for over two decade are aware of the mandates and preferences of each PE/VC. Hence we save lot of time and energy from both sides. The right capital partner for your business should bring more to the table than money. We help you find the right capital partner by matching size, opportunity, industry focus, culture and “chemistry. We create competition for your business among multiple investors to provide you with multiple options and the best possible pricing and deal terms. We have extensive networking with venture capital and private equity firms within India and throughout the world looking forward to investment in high growth companies. Our elementary function is match making of suitable Companies with matching Investors. Finding the right growth capital for your business is crucial for the future success of your company. VCCG has relationships with over 100 venture capital and later-stage private equity firms as well as hundreds of lenders that enable our clients to fund growth in sales and marketing, new product development, facility expansion, strategic acquisitions, and corporate reorganizations. HOW DO WE SELECT VC We prior to selecting a venture capitalist for the entrepreneur match the particular investment preferences set down by the venture capital firm. Often venture capitalists have preferences for particular stages of investment, amount of investment, industry sectors, and geographical location. An investment in a private, unlisted company has a long-term horizon, typically 4-6 years. We ensure that compatible venture capitalist is introduced to the company with whom it is possible to have a good working relationship. Often businesses do not meet their cash-flow forecasts and require additional funds, so an investor's ability to invest in additional financing rounds if required is also important. Finally, when choosing a venture capitalist, the entrepreneur should consider not just the amount and terms of investments, but also the additional value that the venture capitalist can bring to the company. These skills may include industry knowledge, fund raising, financial and strategic planning, recruitment of key personnel, mergers and acquisitions, and access to international markets and technology. Entrepreneurs should not hesitate to ask for references from investors.
Private equity and Venture Capital entire arena of service: Private equity is a broad term that refers to any type of non-public ownership equity securities that are not listed on a public exchange. Private equity encompasses both early stage (venture capital) and later stage (buy-out, expansion) investing. In the broadest sense, it can also include mezzanine, fund of funds and secondary investing. Venture Capital firms invest funds on a professional basis, often focusing on a limited sector of specialization (eg. Retail infrastructure, Logistics, IT, Civil & Industrial Infrastructure, Health & Life sciences, Clean & Green Technology, Nano Technology, etc.). Our goal is to build promising companies so that the shares become liquid (through IPO or acquisition) and provide a rate of return to the investors (in the form of cash or shares) that is consistent with the level of risk. In the process we build equity currency for the company and use their market capitalization as an instrument to build a conglomerate. Our coterie comprise venture capital firms, institutional investors, banks, incubators, angel groups, corporate advisors, accountants, lawyers, government bodies, regulators and other service providers to the venture capital and private equity industry. We along with our coterie have a network of contacts in many areas that can add value to the company, such as in recruiting key personnel, providing contacts in international markets and introductions to strategic partners. We act as catalyst between the company and VC. We assist deserving companies to raise capital for seed ventures, early stage start up, later stage expansion and growth finance for management buy-outs/buy-ins of established companies. Most important intermediation is in following vital areas:
In addition to its venture activities, Veer Capital develops and seeks to acquire highly specialized intellectual property with a focus on technology applications. Veer Capital then utilizes this intellectual property for its own operational or business development purposes, or for those of its third-party clients, affiliates or portfolio companies. Veer Capital is currently working on many new patent-ready technologies and business processes, which it plans to complete and bring to market as soon as possible. We believe the potential of some of our intellectual property is extraordinary, and could ultimately form the basis of multiple distinct start-up companies. Venture capitalist typically seeks: Superior Businesses Venture capitalists look for companies with superior products or services targeted at large, fast growing or untapped markets with a defensible strategic position such as intellectual property or patents. Quality and Depth of Management Venture capitalists must be confident that the firm has the quality and depth in the management team to achieve its aspirations. Venture capitalists seldom seek managerial control, rather they want to add value to the investment where they have particular skills including fund raising, mergers and acquisitions, international marketing, product development, and networks. Appropriate Investment Structure As well as the requirement of being an attractive business opportunity, the venture capitalist will also seek to structure a deal to produce the anticipated financial returns to investors. This includes making an investment at a reasonable price per share (valuation). Exit Opportunity Lastly, venture capitalists look for the clear exit opportunity for their investment such as public listing or a third party acquisition of the investee company. Once a short list of appropriate venture capitalists has been selected, we proceed to identify which investors match companies funding requirements. The venture capital firm will be submitted Business Plan of the investee companies consisting information concerning the product or service, the market analysis, how the company operates, the investment required and how it is to be used, financial projections, and importantly questions about the management team. Our intermediation enables venture capitalist to issue Expression of Interest in the company in shorter time as most of requirements worked out by us will be in confirmatory to their compliance. VC Return on Investment Venture capital firms typically source the majority of their funding from large investment institutions such as fund of funds, financial institutions, endowments, pension funds and banks. These institutions typically invest in a venture capital fund for a period of up to ten years. To compensate for the long term commitment and lack of both security and liquidity, investment institutions expect to receive very high returns on their investment. Therefore venture capitalists invest in either companies with high growth potential where they are able to exit through either an IPO or a merger/acquisition. Although the venture capitalist may receive some return through dividends, their primary return on investment comes from capital gains when they eventually sell their shares in the company, typically between three to five years after the investment. We ensure that Venture capitalists enhance their investors' capital while promoting growth in the companies they invest in and managing the associated risk to protect. Due to our ongoing relationship with the Venture capitalist they trust us more when we refer companies Business Plan to them. The Business Plan: The business plan should explain the nature of the company’s business, what it wants to achieve and how it is going to do it. The company’s management should prepare the plan and they should set challenging but achievable goals. The length of the business plan depends on the particular circumstances but, as a general rule, it should be no longer than 25-30 pages. It is important to use plain English, especially if you are explaining technical details. Aim the business plan at non-specialists, emphasising its financial viability. Avoid jargon and general position statements. Essential areas to cover in your business plan Executive Summary It summarises company’s business plan and is placed at the front of the document. It is vital to give this summary significant thought and time, as it may well determine the amount of consideration the venture capital investor will give to your detailed proposal. It should be clearly written and powerfully persuasive, yet balance "sales talk" with realism in order to be convincing. It should be limited to no more than two pages and include the key elements of the business plan.
1.Background on the company
Provide a summary of the fundamental nature of the company and its activities, a brief history of the company and an outline of the company’s objectives. 2. The product or service Explain the company's product or service. This is especially important if the product or service is technically orientated. A non-specialist must be able to understand the plan.
The entrepreneur needs to convince the venture capital firm that there is a real commercial opportunity for the business and its products and services. Provide the reader a combination of clear description and analysis, including a realistic "SWOT" (strengths, weaknesses, opportunities and threats) analysis.
Having defined the relevant market and its opportunities, it is necessary to address how the prospective business will exploit these opportunities.
Demonstrate that the company has the quality of management to be able to turn the business plan into reality.
The following should be considered in the financial aspect to your business plan:
State how much finance is required by your business and from what sources (i.e. management, venture capital, banks and others) and explain the purpose for which it will be applied. Consider how the venture capital investors will exit the investment and make a return. Possible exit strategies for the investors may include floating the company on a stock exchange or selling the company to a trade buyer. VC INVESTMENT PROCESS: The investment process begins with the venture capitalist conducting an initial review of the proposal to determine if it fits with the firm's investment criteria. If so, a meeting will be arranged with the entrepreneur/management team to discuss the business plan. Preliminary Screening The initial meeting provides an opportunity for the venture capitalist to meet with the entrepreneur and key members of the management team to review the business plan and conduct initial due diligence on the project. It is an important time for the management team to demonstrate their understanding of their business and ability to achieve the strategies outlined in the plan. The venture capitalist will look carefully at the team's functional skills and backgrounds. Negotiating Investment This involves an agreement between the venture capitalist and management of the terms of the term sheet, often called memorandum of understanding (MoU). The venture capitalist will then proceed to study the viability of the market to estimate its potential. Often they use market forecasts which have been independently prepared by industry experts who specialise in estimating the size and growth rates of markets and market segments. The venture capitalist also studies the industry carefully to obtain information about competitors, entry barriers, potential to exploit substantial niches, product life cycles, and distribution channels. The due diligence may continue with reports from other consultants. Approvals and Investment Completed The process involves due diligence and disclosure of all relevant business information. Final terms can then be negotiated and an investment proposal is typically submitted to the venture capital fund’s board of directors. If approved, legal documents are prepared. The investment process can take up to two months, and sometimes longer. It is important therefore not to expect a speedy response. It is advisable to plan the business financial needs early on to allow appropriate time to secure the required funding. VC STAGES: Venture capitalists typically assist at four stages in the company's development: Business idea There are several methods for developing and testing business idea. The ability to come up with a business idea can be transformed into a viable business, where ideas supported by feasibility and business plan can then be sold to interested investors, firms, and interested parties for a lump sum or a management contract, or as agreed. Business ideas, if introduced at the right time, when demand for such service or a product introduced by the idea is expected to surge, can lead to a very profitable business. Business ideas are always available through different sources; however, it is the application applied on these ideas, and timing makes all the difference in failure or success. Startup Company A startup company or start-up is a company with a limited operating history. These companies, generally newly created, are in a phase of development and research for markets. ![]() Ramp up is a term used in economics and business to describe an increase in firm production ahead of anticipated increases in product demand. Alternatively, ramp up describes the period between product development, and maximum capacity utilization, characterized by product and process experimentation and improvements. Ramp up typically occurs when a company strikes a deal with a distributor, retailer, or producer, which will substantially increase product demand. As ramp up is typical in early stages of firm or market development, its most vital to venture capitalist, which seek to rapidly increase rate of return on investment, just prior to exit. Exit Strategy An exit strategy is a means of escaping one's current situation, typically an unfavourable situation. An organization or individual without an exit strategy may be in a quagmire. At worst, an exit strategy will save face; at best, an exit strategy will peg a withdrawal to the achievement of an objective worth more than the cost of continued involvement. For Venture Capitalist, exit plan, or strategic withdrawal, is a way to terminate either one's ownership of a company or the operation of some part of the company. They have predetermined ways of recouping the capital they have invested in a company. The most common strategy is simply to sell their equity position to someone other investor of off load their holding through IPO. There are typically six stages of financing offered in Venture Capital, that roughly correspond to these stages of a company’s development.
SELECTION CRITERIA
Size and Investment Parameters
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