Page 241 - DMGT512_FINANCIAL_INSTITUTIONS_AND_SERVICES

Financial Institutions and Services

Notes 5. Where do venture capitalists get their money from? Do you think venture capitalists in
India have been investing it in the right places?
6. After making a detailed analysis of this unit, what do you think are the main types of
companies and industries that venture capitalists invest in?
7. How do venture capitalists realize a return on their investment?
8. What's the difference between venture capital and private equity? What impact does
corporate venture investing have on the venture industry?
9. “Venture capital combines the qualities of banker, stock market investor and entrepreneur
in one”. Justify.
10. Differentiate between Buy-ins and Buy-outs. What do you see as the role of venture
capitalists in each of them?

11. Which stage do you think is most crucial in the investment process by venture capitalists
and why?

Answers: Self Assessment

1. ICICI, UTI 2. risk, profitability
3. preference 4. existing

5. second round 6. Development Capital
7. American Research and Development 8. assess, manage
9. risk, reward 10. entrepreneurs

11. long-term 12. banker, stock market investor
13. repayment 14. expansion
15. Management Buyouts (MBOs)

16.10 Further Readings

Online links www.entrepreneur.com
www.findarticles.com
www.investorquestions.com

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