1. Introduction 1
2. Literature review 1
2.1 Stages of Venture Capital Investments 1
2.2 Characteristics of Venture Capital Investments. 2
2.3 Venture Capital in a Global Context 3
2.3.1 Venture capital deal values 4
2.3.2 No of deals in venture capital and stage of investment 5
2.3.4 Key global venture insights in 2012 5
2.4 Venture capital in a Sri Lankan context 6
I. Anything.lk commenced with venture capital investment of Ardent Capital 7
II. Millennium IT 7
III. Lanka Ventures Limited (LVL) 7
3.0 Practical applications and learnings. 8
4.0 Viewpoint of the group about the topic. 9
5.0 Conclusion 10
6.0 References 10
Declaration 11
1. Introduction
Venture capital is a form of financing available for early-stage, high-potential, high risk, growth startup companies. At the early stage, just after World War II, venture capital supply was mainly done by wealthy individuals and families. With time this evolved in to a separate industry and number of professionally managed organizations was established to provide venture capital.
It is investments in business ventures from idea Stage through expansion of a Company already producing and selling a product and through preparation for exit from the investment via buyout or initial public offering Venture capital investing may be done at several stages along the Way, but eventual exit is a primary consideration. By its very nature, such investing requires a horizon of several years and the willingness to accept several failures for every success in the venture capital portfolio: The possibly enormous return on the winning venture must compensate for many likely failed ventures.
Venture capital investment process, characteristics and global and local venture capital environment is analyzed in Section 2. Then practical application of venture capital investments in a local context is then presented.
Section 4 to the report presents the authors analysis of present venture capital trends in a local
References: The Journal of Private Equity The Nature of Venture Capital Investments Dow Jones Venture Source, 2013 Ernst & Young (2013), Global venture capital insights and trends 2013 Ernst & Young (2012), Global venture capital insights and trends report 2011 www.Anyting.lk CFA Millenium IT LVL Delloite (2012), Global Trends in Venture Capital Inestorpedia