venture capital

1. VENTURE CAPITAL FUNDING PRESENTATION BY CHANDRA SHEKHAR REDDY KUNDUR DIRECTOR APIDC-VENTURE CAPITAL LIMITED Compiled by Augustin Amaladas M.com.,AICWA.,B.ED.,AICWA

2. VC FUNDING OF BIOTECH/ BIOTECH-PHARMA VENTURES 1. VC “UNDEFINED” 2. VC DEFINED 3. VC CRITERIA FOR INVESTMENT 4. ENTREPRENEURS’ CRITERIA FOR VC 5. RISKS OF A VENTURE 6. UNIQUE NATURE OF BIOTECH VENTURES 7. SOME USEFUL HINTS

3. WHAT IS VC FUNDING? IS IT JUST THE STORY OF THE MAN WITH THE IDEA AND THE MAN WITH THE MONEY?

5. WHAT VC FUNDING IS … IT IS THE BUSINESS OF EMPLOYING CAPITAL ‘PATIENTLY ’ TO ‘MAXIMISE RETURNS’ WHILE MANAGING RISKS IN A RELATIVELY HIGH-RISK VENTURE VERSUS SIMPLY ‘MINIMISING RISKS’ FOR A SURER FIXED RETURN

6. VC FUNDING IS … DIFFERENT FROM OTHER TYPES OF FUNDING IN THE: - SELECTION OF INVESTMENT - STRUCTURING OF INVESTMENT - ACTIVITY FOLLOWING INVESTMENT - EXITING FROM INVESTMENT

7. SELECTION OF INVESTMENT BY THE VC WILL SPAN ... PROMOTERS WITH SIGNIFICANT & PROVEN BUSINESS TRACK RECORD, WHO WILL DEVELOP NEW TECHNOLOGIES &/OR BUILD NEW BUSINESSES TO PROMOTERS WHO ARE TECHNOLOGY SAVVY, HAVE DEVELOPED INNOVATIVE TECHNOLOGIES TO A SIGNIFICANT EXTENT, BUT HAVE NO RELEVANT BUSINESS TRACK RECORD

10. VC WILL LOOK FOR EXITING FROM INVESTMENT THROUGH... - IPO - THIRD PARTY ACQUSITION - BUYBACK BY ENTREPRENEUR

16. SO, WHAT DO WE DO WITH THESE RISKS - EXAMINE THEM CAREFULLY - QUANTIFY THEM, WHERE POSSIBLE - MANAGE THEM - OFFSET BY COMMENSURATE RETURNS

21. THANK YOU

22. APIDC-VENTURE CAPITAL LIMITED 1102, Babukhan Estate, Basheerbagh, Hyderabad-500001, Tel.No.91-40-3299951 & 6510491 Fax No.91-40-3297449 E-mail: apidcvcl@hd1.vsnl.net.in