8/12/2019 article on venture capital funding process
1/12
VOLUME NO.1(2011),ISSUE NO.4(AUGUST) ISSN2231-4245
IIINNNTTTEEERRRNNNAAATTTIIIOOONNNAAALLLJJJOOOUUURRRNNNAAALLLOOOFFFRRREEESSSEEEAAARRRCCCHHHIIINNNCCCOOOMMMMMMEEERRRCCCEEE,,,EEECCCOOONNNOOOMMMIIICCCSSSAAANNNDDDMMMAAANNNAAAGGGEEEMMMEEENNNTTT
A Monthly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories
Indexed & Listed at: Ulrich's Periodicals Directory, ProQuest, U.S.A., The American Economic Associations electronic bibliography, EconLit, U.S.A.,
Open J-Gage, India as well as in Cabells Directories of Publishing Opportunities, U.S.A.
Circulated all over the world & Google has verified that scholars of more than eighty-one countries/territories are visiting our journal on regular basis.
round !loor" Buildin# $o% &'(&-)-&" Devi Bhawan Ba*ar" JAAD+RI , &. ''" /a0unana#ar" +aryana" I$DIA
www%i1rc0%or#%in
CCCCONTENTSONTENTSONTENTSONTENTSSr. No. TITLE & NAME OF THE AUTHOR (S) Page No.
1% FDI TRENDS IN INDIA: A MULTI-DIMENSIONAL ANALYSISDR. K. R. PILLAI & DR. M. S. RAO
1
2% BEHAVIORAL ANALYSIS OF THE FARMERS, AS END USERS, TOWARDS ORGANIC FERTILIZER: AN EMPIRICAL STUDY INBANGLADESH
MUJAHID MOHIUDDIN BABU
6
3% ECONOMIC GROWTH NEUS TO PERFORMANCE OF BAN!ING SECTOR IN PA!ISTANSHAHZAD GHAFOOR & UZAIR FAROOQ KHAN
11
"% BAN! CONSOLIDATION AND CREDIT AVAILABILITY TO SMALL AND MEDIUM ENTERPRISES: EVIDENCE FROM NIGERIADR. AHMAD BELLO DOGARAWA
1#
$% STUDY OF LIN!AGE OF DIVERSIFICATION STRATEGY AND CAPITAL STRUCTURE OF FIRMS: A SURVEYNEETA NAGAR
26
6% A STUDY ON MONEY SUPPLY, INFLATION RATE AND GDP % AN EMPIRICAL EVIDENCE FROM INDIAUMANATH KUMARASAMY
33
&% MICROFINANCE FOR SME': PROSPECTS, CHALLENGES ( IMPLICATIONGAURAV SEHGAL & DR. ASHOK AIMA
3&
)% TRADE ORIENTATION OF INDIAN INDUSTRIESNAGENDRA KUMAR MAURYA & J. V. VAISHAMPAYAN
""
#% GLOBAL FINANCIAL CRISIS AND ITS IMPACT ON INDIAN INSURANCE INDUSTRYS. H. ASHRAF & DHANRAJ SHARMA
"#
1*% FOOD INFLATION IN INDIA- WHERE ARE THE PRICES HEADING+DR. YASMEEN K. AOWTE
$&
11% SOCIAL ENTREPRENEURSHIP % STUDY OF !AUSHALYA FOUNDATIONDR. SHILPA BENDALE & DR. ARVIND CHAUDHARI
61
12% DYNAMISM OF INDIAS FINANCIAL SECTOR DURING THE GLOBAL ECONOMIC RECESSIONDR. B. KUBERUDU & DR. T. V.RAMANA
6"
13% MANAGING RELIGIOUS PHILANTHROPY FOR SOCIO-ECONOMIC DEVELOPMENTBEERAN MOIDIN B. M. & DR. FAISAL U.
6&
1"% INVESTMENT PROCESS OF VENTURE CAPITAL: AN EPLANATORY STUDY OF ANDHRA PRADESH INDUSTRIAL DEVELOPMENTCORPORATION VENTURE CAPITAL LIMITED APIDC-VCL.
DR. A. AMRUTH PRASAD REDDY & DR. S. RAGHUNATHA REDDY
&2
1$% MICRO FINANCE LOANS % ENHANCING BUSINESS OR MEETING PERSONAL EPENSES+ARADHANA CHOUKSEY & DR. YAMINI KARMARKAR
&)
16% INTERNATIONALIZATION OF INDIAN BUSINESS: DRIVERS AND CHALLANGESDR. VILAS M. KADROLKAR & SHREESHAIL G. BIDARKUNDI
)3
1&% SME' IN THE ECONOMIC GROWTH OF AGRA: OPPORTUNTIES AND CHALLENGES WITH SPECIAL REFERENCE TO AGRA SHOECLUSTER.
SHAVETA SACHDEVA & LAXMI R.KULSHRESTHA
#*
1)% SAFE MANAGEMENT OF HEALTH CARE WASTEDR. A. SHYAMALA
#"
1#% POST MARITAL SEUAL ANIETY AMONG DOCTORS A COMPARATIVE STUDY AMONG MALE AND FEMALE DOCTOTRS.VIJAYA U. PATIL, CHANDRAKANT JAMADAR & RUKMINI S.
#)
2*% CLIENTS SATISFACTION TOWARDS PRIVATE LIFE INSURANCE COMPANIESDR. M. DHANABHAKYAM & M. KAVITHA
1*1
21% RURAL ENTREPRENEURSHIP IN JAMMU AND !ASHMIR: OPPORTUNITIES AND CHALLENGESDR. DARAKHSHAN ANJUM
1*$
22% IMPACT OF DEMOGRAPHIC VARIABLES ON PERFORMANCE OF ENTREPRENEURS IN !ERALADR. R. JUBI
111
23% MAR!ET ORIENTATION IN AGRICULTURE: CASE STUDIES OF DEVELOPMENT INTERVENTIONS IN INDIANISHA BHARTI
11)
2"% TRENDS AND PATTERNS OF FDI IN INDIA: AN ANALYSISPRADEEP
126
2$% THE NEW CONSOLIDATED FDI POLICY 2*11: WHETHER IGNORING SOMETHING IN ITS DRIVE TOWARDS BOOSTINGINVESTOR CONFIDENCE+
VAIBHAV CHOUDHARY & DEEKSHA CHAUDHARY
131
RE/UEST FOR FEEDBAC! 13"
8/12/2019 article on venture capital funding process
2/12
VOLUME NO.1(2011),ISSUE NO.4(AUGUST) ISSN2231-4245
INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, ECONOMICS ( MANAGEMENTA Monthly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories
www%i1rc0%or#%in
ii
CHIEF PATRONCHIEF PATRONCHIEF PATRONCHIEF PATRONPROF0 !0 !0 AGGARWAL
)hancellor" 2in#aya3s 4niversity" Delhi
!ounder 5ice-)hancellor" uru obind Sin#h Indraprastha 4niversity" Delhi
67% Pro 5ice-)hancellor" uru Ja0bheshwar 4niversity" +isar
PATRONPATRONPATRONPATRONSH0 RAM BHAJAN AGGARWAL
67% State Minister for +o0e 8 9ouris0" overn0ent of +aryana
5ice-President" Dadri 6ducation Society" )har:hi Dadri
President" )hinar Synte7 2td% ;9e7tile Mills
8/12/2019 article on venture capital funding process
3/12
VOLUME NO.1(2011),ISSUE NO.4(AUGUST) ISSN2231-4245
INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, ECONOMICS ( MANAGEMENTA Monthly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories
www%i1rc0%or#%in
iii
PROF0 NAWAB ALI !HANDepart0ent of )o00erce" Ali#arh Musli0 4niversity" Ali#arh" 4%P%
PROF0 S0 P0 TIWARIDepart0ent of 6cono0ics 8 Rural Develop0ent" Dr% Ra0 Manohar 2ohia Avadh 4niversity" !ai*abad
DR0 ASHO! !UMAR CHAUHANReader" Depart0ent of 6cono0ics" =uru:shetra 4niversity" =uru:shetra
DR0 SAMBHAVNA!aculty" I%I%9%M%" Delhi
DR0 MOHENDER !UMAR GUPTAAssociate Professor" P% J% 2% $% overn0ent )olle#e" !aridabad
DR0 VIVE! CHAWLAAssociate Professor" =uru:shetra 4niversity" =uru:shetra
DR0 SHIVA!UMAR DEENEAsst% Professor" overn0ent !% % )olle#e )hit#uppa" Bidar" =arnata:a
ASSOCIATE EDITORSASSOCIATE EDITORSASSOCIATE EDITORSASSOCIATE EDITORSPROF0 ABHAY BANSAL
+ead" Depart0ent of Infor0ation 9echnolo#y" A0ity School of 6n#ineerin# 8 9echnolo#y" A0ity 4niversity" $oida
PARVEEN !HURANAAssociate Professor" Mu:and 2al $ational )olle#e" /a0una $a#ar
SHASHI !HURANAAssociate Professor" S% M% S% =halsa 2ubana irls )olle#e" Barara" A0bala
SUNIL !UMAR !ARWASRA5ice-Principal" Defence )olle#e of 6ducation" 9ohana" !atehabad
DR0 VI!AS CHOUDHARYAsst% Professor" $%I%9% ;4niversity
8/12/2019 article on venture capital funding process
4/12
VOLUME NO.1(2011),ISSUE NO.4(AUGUST) ISSN2231-4245
INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, ECONOMICS ( MANAGEMENTA Monthly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories
www%i1rc0%or#%in
iv
CALL FOR MANUSCRIPTSCALL FOR MANUSCRIPTSCALL FOR MANUSCRIPTSCALL FOR MANUSCRIPTS
>einvite unpublished novel" ori#inal" e0pirical and hi#h ?uality research wor: pertainin# to recent develop0ents 8 practices in
the area of )o0puter" Business" !inance" Mar:etin#" +u0an Resource Mana#e0ent" eneral Mana#e0ent" Ban:in#" Insurance"
)orporate overnance and e0er#in# paradi#0s in allied sub1ects li:e Accountin# 6ducation@ Accountin# Infor0ation Syste0s@
Accountin# 9heory 8 Practice@ Auditin#@ Behavioral Accountin#@ Behavioral 6cono0ics@ )orporate !inance@ )ost Accountin#@
6cono0etrics@ 6cono0ic Develop0ent@ 6cono0ic +istory@ !inancial Institutions 8 Mar:ets@ !inancial Services@ !iscal Policy@
overn0ent 8 $on Profit Accountin#@ Industrial Or#ani*ation@ International 6cono0ics 8 9rade@ International !inance@ Macro
6cono0ics@ Micro 6cono0ics@ Monetary Policy@ Portfolio 8 Security Analysis@ Public Policy 6cono0ics@ Real 6state@ Re#ional
6cono0ics@ 9a7 Accountin#@ Advertisin# 8 Pro0otion Mana#e0ent@ Business 6ducation@ Business Infor0ation Syste0s ;MIS
8/12/2019 article on venture capital funding process
5/12
VOLUME NO.1(2011),ISSUE NO.4(AUGUST) ISSN2231-4245
INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, ECONOMICS ( MANAGEMENTA Monthly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories
www%i1rc0%or#%in
v
Mobile $u0ber ;shen listin# two or 0ore wor:s by one author" use --- ;E'77ee:ly" 5iewed on July '." E'&& httpepw%inuserviewabstract%1sp
8/12/2019 article on venture capital funding process
6/12
VOLUME NO.1(2011),ISSUE NO.4(AUGUST) ISSN2231-4245
INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, ECONOMICS ( MANAGEMENTA Monthly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories
www%i1rc0%or#%in
E
INVESTMENT PROCESS OF VENTURE CAPITAL: AN EPLANATORY STUDY OF ANDHRA PRADESH
INDUSTRIAL DEVELOPMENT CORPORATION VENTURE CAPITAL LIMITED APIDC-VCL.
DR. A. AMRUTH PRASAD REDDY
ASST. PROFESSOR
DEPARTMENT OF BUSINESS ADMINISTRATION
YOGI VEMANA UNIVERSITYKADAPA 516 003
DR. S. RAGHUNATHA REDDY
ASSOCIATE PROFESSOR
KANDULA SCHOOL OF MANAGEMENT
KSRMCE CAMPUS, KADAPA 516 003
ABSTRACTIt ! " #$%%'()#( *"+t t"t !$-$"% /%%"(t 0$"! t) #)' )( "(0 1)+$!!$! 0$-$%)1$0 ( %"/)"t)$! +"(()t /$ 12t (t) +)33$+"% )1$"t)( )( "++)2(t )* #"(t
)* *2(0!. N) t"0t)("% *("(+$ #)2%0 +)3$ *)#"0 t) *("(+(4 t$!$ (!tt2t)(!. T$ *("(+"% (!tt2t)(! "-$ " /"! *) *)$4( t$+()%)45 "(0 t$5 0)
()t /$%$-$ t$ "/%t5 )* t$ %)+"% $(t$1$($2!. I( !2+ " !t2"t)( -$(t2$ +"1t"% "!!23$! +)(!0$"/%$ !4(*+"(+$. V$(t2$ C"1t"% ! /"!+"%%5 " $%"t)(!1
"3)(4 t$$ 3"6) 1"t+1"(t!7 (-$!t)!, -$(t2$ +"1t"%!t! 8VC!9 "(0 $(t$1$($2!. I(-$!t)! : *("(+"% (!tt2t)(!, /"('!, (!2"(+$ +)31"($!, 1$(!)(*2(0!, "(4$% (-$!t)!, NRI! : C)(t/2t$ t) t$ 1))% )* *2(0!. F2(0! t2! 1))%$0 *)3 -")2! (-$!t)! "$ (-$!t$0 ( /2!($!! )11)t2(t$! /5 VC!.
E(t$1$($2"% t$"3! t"t !211%5 /2!($!! )11)t2(t$! t) VC! "$ +$(t"% 1%"5$! ( -$(t2$ +"1t"% 1)+$!!. It ! t$ (-$!t3$(t 3"("4$ #) "3! "t
0$%-$(4 !21$) $t2(! t) t$ (-$!t)! /5 +$"t(4 -"%2$ ( "%% (-$!t3$(t %*$ !t"4$!7 0$"% !)2+(4, 0$"% "("%5!!, 02$ 0%4$(+$, 0$"% !t2+t2(4 "(0
(-$!t3$(t, 3)(t)(4, "(0 $;t(4. T$ !t205 #"! +)(02+t$0 /5 t"'(4 t$ *)%%)#(4 )/6$+t-$! (t) +)(!0$"t)( -
8/12/2019 article on venture capital funding process
7/12
VOLUME NO.1(2011),ISSUE NO.4(AUGUST) ISSN2231-4245
INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, ECONOMICS ( MANAGEMENTA Monthly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories
www%i1rc0%or#%in
PROCESS OF VENTURE CAPITAL IN APIDC-VCL5enture )apital is basically a relationship a0on# three 0a1or participants investors" venture capitalists ;5)s< and entrepreneurs% Investors , financial
institutions" ban:s" insurance co0panies" pension funds" an#el investors" $RIs , )ontribute to the pool of funds% !unds thus pooled fro0 various investors are
invested in business opportunities by 5)s% 6ntrepreneurial tea0s that supply business opportunities to 5)s are central players in venture capital process% It is the
invest0ent 0ana#er who ai0s at deliverin# superior returns to the investors by creatin# value in all invest0ent life sta#es deal sourcin#" deal analysis" due
dili#ence" deal structurin# and invest0ent" 0onitorin#" and e7itin#% 9he overall venture capital process of APID)-5)2 at a snapshot is depicted by the followin#
!i#ure-&
FIGURE - 1: VENTURE CAPITAL PROCESS OF APIDC-VCL
S9;
8/12/2019 article on venture capital funding process
8/12
VOLUME NO.1(2011),ISSUE NO.4(AUGUST) ISSN2231-4245
INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, ECONOMICS ( MANAGEMENTA Monthly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories
www%i1rc0%or#%in
(
Deals havin# been lo##ed" are considered for further processin#%
9he tea0 analyses the attractiveness of the deal" and decides whether the proposal should be ta:en-up for further processin# and eventual invest0ent%
If proposal is accepted in this sta#e" the entrepreneur is invited for further presentation or if re1ected" it is co00unicated to the entrepreneur%
AREAS OF CONCERN
Initial scrutiny of the proposals received is not syste0atically done%
Sta#e of pro#ress in processin# of proposals is not co00unicated to entrepreneurs%
9i0e li0it is not in the syste0 either for consideration or re1ection of the proposal%
DUE DILIGENCEOnce the proposal passes throu#h initial screenin#" it is sub1ected to due dili#ence process which is a ri#orous analysis" and investi#ation into" the deals received
by venture capitalists% Due dili#ence analysis e7a0ines the enterprise" entrepreneurial talent" the products or services" and the chances of 0ar:et success% It is
ti0e-consu0in# process" runnin# into several wee:s" so0eti0es 0onths% It involves verifications" references" bac:-#round chec:s on 0ana#e0ent" 0ar:et
potential of the products or services throu#h syste0atic study of suppliers" custo0ers" co0petitors% 9he process of due dili#ence is shown in fi#ure-(%
FIGURE-": DIAGRAMATIC PRESENTATION OF THE DUE DILIGENCE PROCESS
PROCEDURAL STEPS IN THE DUE DILIGENCE PROCESS ARE AS FOLLOWS
Startin# point in due di li#ence is presentations by entrepreneurs%
Subse?uent to the presentation" the entrepreneur is re?uired to sub0it a detailed business plan%
$as all information
!rovided %y the client to
the satisfaction of theanalyst & have all dou%ts
%een deared
Call for internalmeeting
Meeting & Corres!ond
ence 'ith
entre!reneur
Presentation %ythe entre!reneur
Su%mission ofdetailed %usiness
!lan
Does the analyst have
dou%ts & remar(s on anyas!ect of the %usiness
Meeting & Corres!ond
ence 'ith senior
management andex!erts
"o
#es
"o
#es
Analysis of
the !lan
#es
"o
Internal Meeting
Does the internal meeting
give a favora%le res!onseto the !ro!osal
Communicate the
reection toentre!reneur
Draft Due diligencere!ort
Issue )etter of
interest& Mo* to
entre!reneur
8/12/2019 article on venture capital funding process
9/12
VOLUME NO.1(2011),ISSUE NO.4(AUGUST) ISSN2231-4245
INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, ECONOMICS ( MANAGEMENTA Monthly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories
www%i1rc0%or#%in
.
)oncerned business analyst studies deeply the business plan so as to understand entrepreneur3s business%
Business analyst 0eetscorresponds with the entrepreneur" see:in# infor0ation till he satisfies hi0self with all aspects of business%
9o clarify his doubts on various aspects of business" business analyst also see:s #uidance fro0 the senior 0ana#e0ent and advice the0 the industrial
e7perts%
Internal assess0ent co0pleted" the senior 0ana#e0ent and business analyst tea0 ta:e a final view as to whether the proposal has any pitfalls or should
be ta:en-up for invest0ent%
On a favorable outco0e of the 0eetin#" a letter of interest is issued to the entrepreneur" and due dili#ence report is drafted by the concerned business
analyst%
AREAS OF CONCERN Proceedin#s of the 0eetin#s with the entrepreneur and his tea0 durin# the due dili#ence process are recorded in individualistic 0ethodsstyles of the
respective business analysts%
Minutes of internal 0eetin# and of 0eetin#s with e7perts and reasons for re1ection of proposal" are not properly recorded%
DEAL STRUCTURING AND INVESTMENT
5enture havin# been evaluation as viable" the venture capitalist and investee co0pany are en#a#ed in ne#otiation to stri:e the deal and deter0ine its ter0s vi*%"
the a0ount" for0 and price of the invest0ent% 9his process is shown in fi#ure-.%
FIGURE-$: DEAL STRUCTURING AND INVESTMENT IN APIDC-VCL
Source !ield Data
9a:in# into consideration the su00ary of the internal 0eetin# and the due dili#ence report" the senior 0ana#e0ent decides the ter0-sheet of the
invest0ent%
Subse?uently the co0pany presents its due dili#ence report and proposed ter0-sheet to the invest0ent co00ittee for its deliberation and approval%
Proposal havin# been cleared by the invest0ent co00ittee" it is put up to the board for its final approval%
After the board3s approval" the invest0ent is 0ade by the co0panyventure capital fund into the pro1ectenterprise under consideration%
9er0-sheet" 0inutes of invest0ent co00ittee and board are i0portant docu0ents in the process%
AREA OF CONCERN
9he pro1ect i0ple0entation schedule of the prospective portfolio enterprise does not for0 part of the deal a#ree0ents%
MONITORING OF PORTFOLIO ENTERPRISES9he purpose of this sta#e is to avoid losses by seein# red fla#s well in advance that si#nal and warn i0pendin# dan#ers% CMonitorin#3 refers to the collection and
use of specific infor0ation by 0ana#e0ent co00ittee on critical events associated with pro1ect operation" while the Cnurturin#3 is a co0prehensive ter0 that
enco0passes provision of #uidance and s:ills for the 0ana#e0ent of the venture% In fi#ure-H is shown the 0onitorin# process in APID)-5)2%
Are there any
suggested
changes &
concerns for
revie'
+oard meeting
Senior management
meeting
Investment
committee meeting
Investment!rocess
"o
#es
Draft
term
sheet
Meeting 'ith
!romoter& revie' of
Internal assessment
$as the
investment
committee
cleared the
!ro!osal
Minutes
$as the +oard
cleared the
!ro!osal
Communicate the
reection to !romoter
"o
"o
#es
Minutes
#es
Signing of
investment
agreements
,elease of funds
Investment agreement
+uy%ac( agreement
Pledge of shares
*nderta(ing from !romoters
"on-dis!osal of shares
Disinvestment agreement
Deed of hy!othecation
Accounting records
+an( records
8/12/2019 article on venture capital funding process
10/12
VOLUME NO.1(2011),ISSUE NO.4(AUGUST) ISSN2231-4245
INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, ECONOMICS ( MANAGEMENTA Monthly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories
www%i1rc0%or#%in
H
FIGURE-6: MONITORING PROCESS IN APIDC-VCL
S9;
8/12/2019 article on venture capital funding process
11/12
VOLUME NO.1(2011),ISSUE NO.4(AUGUST) ISSN2231-4245
INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, ECONOMICS ( MANAGEMENTA Monthly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories
www%i1rc0%or#%in
Portfolio co0pany failin# to provide e7it to the venture capital co0pany at the re?uired rates of return" the latter e7plores alternative e7it routes as per
the invest0ent a#ree0ent%
AREA OF CONCERN
Pro-active analysis of sectors the portfolio co0panies are operatin# in" is not done%
FINDINGS OF THE STUDYDEAL SOURCING
9he Source of deal #eneration is not recorded%
S:etchy deal lo#% 9here is no defined process of evaluatin# proposals in the be#innin#%
Deal sourcin# of APID)-5)2 proactively identifies both new invest0ent pro1ects and entrepreneurial tea0s throu#h its e7tensive social networ:s%
DEAL ANALYSIS
9here is no syste0atic initial scrutiny of the proposal%
2ac: of co00unication about the sta#e of pro#ress to the entrepreneur@ and
9here is no specific ti0e li0it for co00unicatin# acceptance or re1ection of the proposal%
DUE DILIGENCE
Meetin#s of the due dili#ence process are not recorded%
Recordin# of internal 0eetin#s were not ta:en place%
Reasons for re1ectin# proposals are not specified%
Industry or sector studiesreports are not available%
DEAL STRUCTURING AND INVESTMENT
Senior 0ana#e0ent 0eetin#s are not recorded%
I0ple0entation schedule of a proposal" post-invest0ent is not for0in# part of a#ree0ent and it is not 0onitored%
MONITORING PORTFOLIO ENTERPRISES Absence of syste0atic 0onitorin#%
$ot recordin# and analy*in# 0eetin#-to-0eetin# pro#ress with portfolio enterprises%
$ot collected re?uisite infor0ation fro0 portfolio enterprises%
2ac: of effective interaction between senior 0ana#e0ent and business analyst%
EIT
2ac: of pro-active analysis of sectors" the portfolio enterprise are operatin# in%
SUGGESTIONS Since 0onitorin# of portfolio enterprises is wea:" corporate #overnance practices should be instituted in APID)-5)2 to i0prove its overall nurturin# and
0onitorin# practices with re#ard to portfolio enterprises%
APID)-5)2 should adopt business analyst-initiated pro-active approach of see:in# the new ventures for venture fundin#" as a#ainst entrepreneur-initiated
re-active approach%
9here should be proper recordin# of the proceedin#s of first 0eetin# of senior 0ana#e0ent of APID)-5)2 and entrepreneurs%
APID)-5)2 should develop effective two-way co00unication syste0 between it and entrepreneurs to ensure synchroni*e their operations% Schedule of new pro1ect i0ple0entation of portfolio enterprises should be part of deal a#ree0ent between APID)-5)2 and portfolio enterprises%
APID)-5)2 should evolve 0ana#e0ent infor0ation syste0 ;MISillia0" 9i00ons A Jeffery" L56$94R6 )API9A2 A9 9+6 )ROSS ROADSF" +arvard Business School Press" Boston" &H%
% !ried" 5ance" +% and +isrich" Robert" D%" L9owards a Model of 5enture )apital Invest0ent Decision-Ma:in#3" !I$A$)IA2 MA$A6M6$9" 5ol%E ;
8/12/2019 article on venture capital funding process
12/12
VOLUME NO.1(2011),ISSUE NO.4(AUGUST) ISSN2231-4245
INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, ECONOMICS ( MANAGEMENTA Monthly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories
G
REQUEST FOR FEEDBACK
D7; R77;'
At the very outset" International Journal of Research in )o00erce" 6cono0ics 8 Mana#e0ent ;IJR)M