Major criteria in project selection include:

A strong management team with a promising track record

Promoter / management team should possess the competence and credentials for building companies capable of capturing dominant market shares .
The market potential needs to be large with opportunities for substantial growth.
The investee enterprise should possess the ability to develop and retain the competitive advantage through use of cutting edge technology and managerial skills.

Procedure for availing funding commences with a preliminary discussion based on the project profile; a detailed business plan is thereafter to be submitted for evaluation of the project.

Structure of Business Plan

Executive Summary

Brief outline of the project

1. Location (existing activities & proposed project)

2.Product / Services (existing activities & proposed project)

3.Technology areas

4.Target / Potential market

== Promoters / management team (with track record & existing activities)

== Existing business indicating legal status, nature of business, ownership pattern etc.

== Present Proposal (categorized as expansion / market development / new product commercialization / enhancement of existing product / Capital investment / Working capital infusion etc.) in detail.

5. Total Requirement of Funds

Means of Finance indicating the sources, viz.,

1. Promoters

2. Venture Capital

3. Others

== SSI Status

== Proposal regarding exit & indications on return on investment by VC

Back Ground

A. (Existing company / business)

== Detailed write-up on the existing business:

1. Evolution of business since incorporation / formation

2. Industry profile

3. Company's current position vis-à-vis the market

4. Expertise & skill levels

5. Financial performance and position (over last 3 years)

Detailed write-up on promoters and management:

track record, special accomplishments etc.

2. Organizational structure indicating roles and responsibilities

== Details of skill, set of key employees (total employee strength, qualification, experience and attrition

over past three years)

==Details of funding i.e. source and use of funds (over last 3 years)

== Shareholding pattern

== SWOT Analysis

== Core competencies (i.e. skills / strength contributing to sustainable competitive advantage)

== Entry barriers

== Business interests of the group

==References (Professional and Business associates)

B. (Start-up Company)

== Detailed write-up on the promoters:

1. Experience in the proposed area

2. Expertise & skill level

Product /Service

==Detailed description of products / services

== Unique selling proposition indicating unique features of product / services

== Technology involved - history of development & competitiveness

==Comparative analysis vis-à-vis competitive products (in terms of features, cost, technology etc.)

== Entry barriers (in case of new product / market)

Market Analysis

==Detailed write-up on current market:

1. Market size (target market i.e. domestic / international)

2. Future growth prospects (validated by research reports)

3. Competitors and competitive scenarios

4. Overall demand-supply

5. Key success factors

6. Substitute products (if any)

7. Technology indicating trends and future developments

 Present Proposal

==Detailed write-up on present proposal:

1. Product / Services

2. Type of project (Product upgradation / Market development / Capital investment / Expansion)

3. Manpower planning & Staffing

4. Revenue Model

5. Sustainability & scalability of revenues

6. Break-up of funds requirements

7. Implementation schedule

8. Forecast (with detailed assumptions) of profitability, cash flow & balance sheets for next five years

9. Sensitivity analysis and risk mitigation measures

Business Strategy

1. Strategy for identification and targeting the market segments

2. Market development

==Niche area (technology, services, market if any)

== Marketing alliances & associations (if any)

== Quality accreditations (existing / planned, if any)

== Sustainable Competitive advantages vis-à-vis the market

== Strategies pricing / costing & product positioning

Management

== Organization chart

== Board of Directors

== Proposal for retention and development of personnel

Finance

==Means of finance (in terms of instruments)

==Capital structure (pre and post-investment)

Exit

==Buy-back / Strategic Sales / IPO

==Timing

== Return to the fund

So what are the biggest Venture Capital companies in India?

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