Venture Capital Financing

Venture Capital in India – a trend that has made its way to our country from the West over the last decade. It involves the providing of capital to a business venture for:

  • Seed capital in order to kick-start the business ,
  • Early-stage operations of a business,
  • Later-stage expansion plans

The main features of venture capital funding are:

  • Allocated to high-risk but high potential ventures to float and run its operations till it breaks-even
  • Is a very important funding model for start-ups since they do not have access to capital markets.
  • The venture capitalist usually makes and recovers the money by owning equity in the company.
  • Most venture capital investors seek either an innovative business model or a novel technology to invest in.
  • Focus is given to building businesses that would lead the market in both domestic and international spheres

Regulations for Venture Capital:

In India, venture capital funds can be categorized under the following sub-heads:

  • Central Govt. controlled development funds by financial institutions like ICICI, IFCI, SIDBI.
  • State Govt. controlled development funds by financial institutions of various states
  • Public Banks promoted funds like SBI Capital Markets Ltd
  • Private Organizations promoted funds like IL&FS.
  • Funds by overseas players like Walden International etc

All these venture capital funds are governed by the Securities and Exchange Board of India (SEBI), which is the nodal agency for registration and regulation of both domestic and overseas venture capital funds. The following regulations control all VC funds in this country:

  • SEBI (Venture Capital Funds) Regulations 1996
  • SEBI (Foreign Venture Capital Investors) Regulations 2000.

Trends in India:

In India, it has been seen that venture capital investments are made into high growth sectors like:

  • Technology and the knowledge-based industries (KBI sector).
  • Biotech, wireless, IT, pharmaceuticals are some other growing sectors that attract venture capitalists.

Why you should tap this form of funding:

  • It will give your business long-term equity finance which will provide a solid capital base for future growth.
  • The venture capitalist is like your business partner, sharing both your risks and rewards.
  • The venture capitalist will provide practical advice and assistance to you based on past experience with other businesses which were in similar situations.
  • The venture capitalist also has a network of contacts in many areas that can add value to your business, such as in recruiting key personnel, providing contacts in markets, introductions to strategic partners, and if needed co-investments with other venture capital firms when additional rounds of financing are required.

How CIG Can Assist

You're involved in far more than financing a transaction. You have to develop a business, find a management team and partners. There are obstacles to avoid, challenges to overcome, and opportunities to seize. You need stage-appropriate funding—and raising equity capital can be tricky. Throughout the journey, CIG Group India is there for you. As the leading financial printer to the private equity market, we're committed to delivering value to firms and their portfolio companies. We offer best-in-class solutions and services to meet the needs of any size transaction or regulatory project.

CIG Group India assists you with the following

Fund Raising

  • Venue virtual data room for raising funds
  • Global conferencing facilities for meetings and road shows


  • SEC Filing and financial print for exchange offers and mergers & acquisitions and 144As
  • Design services for PPM Covers and inserts
  • Experienced go-to person to manage your deals
  • Venue virtual data rooms for LP reporting
  • Fulfillment services and customized mailings for LP reporting
  • Translation services to enhance global presence

Portfolio Company Management

  • Financial printing for annual reports, 10-Ks and 20-Fs
  • Design services for annual reports
  • Venue virtual data room for portfolio management
  • Self-filing tool, NET. Filer, for Section 16, Forms 3, 4 and 5 and Form 8-Ks
  • Full-service Section 16 filings coordinated with your law firm
  • Experienced go-to person to manage your deals


  • SEC filing and financial print for mergers & acquisitions and IPOs
  • Venue virtual data room to facilitate the front end of M&A and IPO processes
  • Experienced go-to person to manage your deals

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