The Hindu Business Line : N Srinivasan, Adviser, CII; Adarsh Institute of Management and IT, Bangalore

Mr Srinivasan, Adviser, CII, delivering a lecture at Adarsh Institute of Management and IT in Bangalore on Friday. The function was organised by BL Club.

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Bangalore, Nov.21 Former Director General of Confederation of Indian Industry and special adviser of CII Institute of Quality, Mr. N. Srinivasan, urged the students of Adarsh Institute of Management and Information Technology (AIMIT) to explore the rural markets as it offered “a fabulous opportunity.”

Speaking on venture capital, organised by the Business Line Club here on Friday, Mr Srinivasan explained to the students how venture capital lives up to its promise of “more than money.” In a manner understood easily by the students, he dwelt at length on the how, why and what of venture capital and its benefits.

“VC (venture capital) is all about utilisation of creativity. It is private equity but not debt. It is a ride where the ultimate highs don’t just come from the money, but from new ideas. It is fundamentally about building a company (usually a start-up promotion) with smart money and a clear game plan,” he said.

Explaining the nuances, he said, “Venture capitalists typically are very selective in their decisions. They may decide to invest in only one among hundred of opportunities presented to them. They are most interested in ventures with exceptionally high growth potential, as only such opportunities are likely capable of providing the financial returns and successful exit event within the required timeframe that venture capitalists expect. The investing cycle for most funds is generally three to five years, after which the focus is managing and making follow-on investments in an existing portfolio.”

Venture capitalists actively work with the company’s management by contributing their experience and business savvy gained from helping other companies with similar growth challenges. Venture capitalists may be generalist or specialist investors depending on their investment strategy.

“The job of the venture capitalist is to make you succeed and VC is here to stay,” Mr Srinivasan said.

Speaking on Indian venture capital industry, Mr Srinivasan said it was 20 years old, comprising about seven companies and some even backed by State Governments.

Mr R.A. Babu Vijay, Deputy Regional General Manager, The Hindu, Ms Anitha Ramachander, Director of AIMIT, and Ms Bhavana Bandekar, Executive Secretary of AIMIT were present.

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