Having heard about venture capitalists, getting to know about it in detail from Mrs. Parvathi Srinivasan was interesting in the finance and entrepreneurial students of TIPSGLOBAL.
Venture capitalists are those who either provide capital to start-up ventures or support small enterprises that wish to expand themselves, but do not have the sufficient access to the funds. Using venture capitalists the companies are able to bring wealth and expertise to the company.
In exchange for financial support (called Venture Capital), they often require some control over company operations. Their contributions, in the form of financial support, business management experience, networking contacts, etc., adds value to the companies they invest in.
The VC usually has some sort of term in mind as regards the duration of their involvement with a company. They want a return on their investment within a period of time and will plan an exit strategy based on the milestones set out in their agreement with the company. The VC helps establish a strategic plan for each step in the growth of the company using the milestones as markers. Venture capitalists mostly invest in bio-tech, dotcoms and educational institutions.
While a VC is usually a group or a firm an angel investor is an individual who puts his own finance into the growth of a small business at an early stage, also potentially contributing advice and business experience.
The lecture was interesting and threw light on alternative methods of funding, which was very useful to the finance and entrepreneurial students of TIPSGLOBAL.