Are you looking for bright career in the Venture Capital? Then we have provided all the necessary things like Venture Capital Interview Question and Answers on our site page, not only the Question and Answers we have also provided the various job roles in Venture Capital. In order to clear the Venture Capital interview in the first attempt one must prepare well on all the topics of Venture Capital. There are numerous leading companies that offer jobs in various roles like Associate - Investment Team - Venture Capital Firm - CA/IIM/MDI/ISB, SAIF Partners - Investment Analyst, Investment Analyst - Venture Capital, Analyst - Equity & Debt - Venture Capital Fund - CA/IIM/MDI/ISB/FMS along with these there are many other roles too in Venture Capital. For any other details on Venture Capital Interview Question and Answers and various leading Venture Capital job positions visit our site Wisdomjobs Venture Capital page.
Prepare for this question well as is likely to be the opening question of every interview you have. Good reasons include the love of the technology / science, excitement for investing in companies, enjoying communicating with interesting people, the thrill of looking at new ideas and chasing the next Google, etc.
Talk about whether the IPO markets are doing well or not, whether you think there is a bubble, etc. The state of IPO markets is critical to venture capital firms because this is one of the most common way for them to realise their investments, so you need to be able to demonstrate whether the markets are doing well (lots of high profile IPOs, high valuations) or not (stocks going down, IPOs postponed, etc).
Investment Structure: Invests between $2 Mn to $10 Mn in each company with less than $10 Mn in revenues.
Industries: Outsourcing, Mobile, Internet, Retail Services, Healthcare, Education and Financial Services.
Startups Funded: Yepme, MakemyTrip, NetAmbit, Komli, TAXI For Sure, PubMatic.
Investment Structure: Invests between $0.5 Mn and $50 Mn in its portfolio companies.
Industries: Internet and Consumer Services, Infrastructure, Cloud -Enabled Services, Mobile and Software.
Startups Funded: Flipkart, BabyOye, Freshdesk, Book My Show, Zansaar, Probe, Myntra, CommonFloor.
Investment Structure: Provides seed funding investments between $0.05 Mn – $0.3 Mn in seed stage. Also, provides follow-on investments to portfolio companies ranging from $.5Mn to $1.5Mn.
Industries: Mobile Applications, Telecommunications Equipment, Data Infrastructure, Internet and Software Sectors, Consumer Internet, Media, Research and Development
Startups Funded: Carbon Clean Solutions, EKI Communications, Audio Compass, Exotel, Printo.
Investment Structure: SCI invests between $100,000 and $1 Mn in seed stage, between $1 Mn and $10 Mn in early stage and between $10 Mn and $100 Mn in growth stage companies.
Industries: Consumer, Energy, Financial, Healthcare, Outsourcing, Technology
Private equity and venture capital are two very different worlds. Good answers include: you prefer to invest in early stage companies, do not like the use of leverage by private equity, feel that there is more potential in venture capital, etc.
capital invested in a project in which there is a substantial element of risk, typically a new or expanding business.
Venture Capital Process:
The venture capital funding process typically involves four phases in the company’s development:
Step 1: Idea generation and submission of the Business Plan
The initial step in approaching a Venture Capital is to submit a business plan. The plan should include the below points:
There is detailed analysis done of the submitted plan, by the Venture Capital to decide whether to take up the project or no.
Step 2: Introductory Meeting
Once the preliminary study is done by the VC and they find the project as per their preferences, there is a one-to-one meeting that is called for discussing the project in detail. After the meeting the VC finally decides whether or not to move forward to the due diligence stage of the process.
Step 3: Due Diligence
The due diligence phase varies depending upon the nature of the business proposal. This process involves solving of queries related to customer references, product and business strategy evaluations, management interviews, and other such exchanges of information during this time period.
Step 4: Term Sheets and Funding
If the due diligence phase is satisfactory, the VC offers a term sheet, which is a non-binding document explaining the basic terms and conditions of the investment agreement. The term sheet is generally negotiable and must be agreed upon by all parties, after which on completion of legal documents and legal due diligence, funds are made available.
The various types of venture capital are classified as per their applications at various stages of a business. The three principal types of venture capital are early stage financing, expansion financing and acquisition/buyout financing.
The venture capital funding procedure gets complete in six stages of financing corresponding to the periods of a company’s development
Seed money: Low level financing for proving and fructifying a new idea
Start-up: New firms needing funds for expenses related with marketingand product development
First-Round: Manufacturing and early sales funding
Second-Round: Operational capital given for early stage companies which are selling products, but not returning a profit
Third-Round: Also known as Mezzanine financing, this is the money for expanding a newly beneficial company
Fourth-Round: Also calledbridge financing, 4th round is proposed for financing the "going public" process
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