VENTURE CAPITAL
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Indian Economy and Indian Financial System — JAIIB.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is venture capital?
Venture capital is a form of private equity financing provided by investors to startup companies and small businesses with high growth potential in exchange for equity stake.
What is the 'Series A' round in venture capital financing?
First significant institutional funding round after seed stage.
Which regulatory body oversees venture capital funds in India?
The Securities and Exchange Board of India (SEBI) regulates venture capital funds in India under the SEBI (Alternative Investment Funds) Regulations, 2012.
What is a 'unicorn' company in the context of venture capital?
A privately held startup valued at over one billion dollars.
Under which SEBI regulation are venture capital funds currently governed in India?
Venture capital funds are governed under SEBI (Alternative Investment Funds) Regulations, 2012, where they fall under Category I Alternative Investment Funds (AIFs).
What does 'equity stake' mean in a venture capital investment?
The ownership percentage acquired by the investor in the company.
What is the minimum investment size required from an investor in a SEBI-registered AIF (venture capital category)?
The minimum investment required from any investor in a SEBI-registered Alternative Investment Fund, including venture capital funds, is Rs. 1 crore.
What is a 'startup incubator' in the venture capital ecosystem?
An organization supporting early-stage startups with resources and mentorship.
Video classes for this chapter
More chapters in Module D - Financial Products and Services
Master the full IEIFS syllabus
Every chapter of Indian Economy and Indian Financial System — videos, tests, notes and one-liner decks in one place.