VENTURE CAPITAL
                                           
                                               It is a form of equity financing designed specially for funding high risk and high reward projects. This is combined with value addition in the form of management advice, marketing expertise and contribution to overall strategy. The concept was emerged in 1950s in the US and spread to other parts of the world. Today the venture capital market consist of large number of venture capital funds(VCFs) established by various companies and individuals in the form of trust or company. A venture capitalist invest only in highly promising and rewarding projects which usually have high risk also. So it is a high risk capital. 


Definition 
      According to Indian Venture Capital Association (IVCA), "venture capital means, money provided by professionals who invest alongside management in young, rapidly growing companies that have the potential to develop into significant economic contributors."  VCFs provide seed, start up and first stage financing and also funds the expansion of companies that have already demonstrated their business potential but do not yet have access to the public securities market or to credit oriented institutional funding sources."

Financing Pattern 
       Venture capitalists can finance a project in many ways at different stages. Many of venture capitalists provide funds in the form of equity capital. They usually subscribe 49% of equity shares. This ensures that the ownership remains with the entrepreneur. As the cash flows are uncertain in the initial years equity financing is more beneficial to the entrepreneur than debt financing. In certain cases venture capitalists provide loan which may be converted into equity shares at a later date.  The amounts are given as seed capital. It is a help for the entrepreneur to get money in the early stages of project formulation. Research programmes before the product is launched into the market also needed when the market also needs money. Funds are also needed when the business starts picking up. Venture capitalists also provide finance for expansion and diversification. In certain cases the company may not be able to raise funds through public issue. Entrepreneurs usually approach venture capitalists for funds in such circumstances.

Stages of financing 
           
   I. Early Stage Financing 


  II. Later Stage Financing 




I. Early Stage Financing 
               This is the first stage financing when the firm is undertaking production and need additional funds for selling it's products. The capital is provided for product development, R&D and initial marketing. It involves different type of financing like;

a) Seed Capital / Seed  money
b) Start up Capital
c) First Round Financing
d) Second Round Financing


II. Later Stage Financing 
                  This stage of venture capital financing involves established businesses which require additional financial support but cannot resort to public issues of capital. This stage of financing includes financing development, expansion, buyouts and turnaround needs. Thus different forms of financing in this stage are;

a) Development Financing
b) Bridge Financing
c) Replacement Financing
d) Buyouts / Acquisition Financing
e) Turnaround Financing

Reserve Bank's Current Rates........

LATEST MACRO ECONOMIC INDICATORS

Bank Rate                                                : 6%
Repo Rate                                                : 8.5%
Reverse Repo Rate                                 : 7.5%
Cash Resere Ratio                                   : 4.75%
Statutory Liguidity Ratio                          : 25%
Prime Lending Rate                                  : 12.25 - 12.5%

MUSCLE CARS

           It is the sheer simplicity of the muscle car that makes it so universally appealing. The recipe is just so straight forward. Take a compact automobile and install an incredibly-powerful engine (preferably a V8) to deliver a tire frying performance. No auto enthusiast can argue with that one. It's a formula for success that have been tried and tested for 50 years and has created some of the most exciting cars in history. Just mentioning the names Mustang, Charger, GTO, Corvette or viper sends a shiver down the spine!

           The muscle car story began in America's post war boom of the 1950s as inter-brand rivalry in Detroit saw horsepower figures steadily rising through the decade. But these big engines were being fitted to big cars and they didn't have mass market appeal. That all changed in 1964 when Pontiac installed a full- size engine into a mid-size car and created the awsome GTO, the first true muscle car.

Today the muscle cars are back with new styles and improved features like advanced suspension and latest electronic driver aids. If that sounds too complicatedfor die hard muscle car fans don't worry, because none of the newcomers has forgotten that basic principle. Horsepower is still the number one priority as the muscle car legend lives on.

Take a look at the legends of the 50s and a glance at the heros of the road of 21st century.

1. The AMC AMX

                                  

 

The AMC AMX of 1968 was the only two-seater American sports car of that time

      Specification

• Years built                  1966-1974
• Most powerfull model  1969 SS
• Engine type                  V8
• Displacement                401 cid
• Transmission                 four speed manual
• Top speed                    120 mph

2. Buik Wildcat

The buik wildcat ruled the roads throughout 1962 to 1970. The production ended in 1970 with the final model but buik started thinking of it with a concept in 2010. May be this will be a new era of the old legend.

2010 model wildcat.

     Specification

• Years built                          1962 to 1970,  2010 to date.
• Most powerfull model         1970 455
• Engine type                         V8
• Transmission                       Five speed automatic
• Power                                 370bhp
• Top speed                           130mph



3.Dodge viper

The Dodge Viper exploded onto the scene at the 1989 Detroit Auto Show and moved the muscle car into a whole new era. Big, brash and brawny, within three years the viper was in showrooms and an American dream was realised.

          Specification

• Years built                                 1992 to date
• Most powerful model                 2005 SRT-10
• Engine type                                V10
• Transmission                              Six-speed manual , rear-wheel drive
• Power                                       500bhp
• Top speed                                 190mph

Wait for more............

• "As a private person, I have a passion for landscape, and I have never seen one improved by a billboard" - who said this?

                                                David Ogilvy in his book Confessions of an Advertising Man

FOOD INFLATION IN INDIA - CAUSES, SOLUTION

Food inflation - one of the burning issues in India today which is affecting all sectors of our economy is a big threat to the life and livelyhood of the common man in the country. Recent data on food inflation status shows that prices of almost all vegetables,fruits and protein based food items increased by an average of  0.63% pushing the overall food inflation rate to 10.05%. It was 17.05% in january this year and redused gradually during the month of February and was 9.52% in the last week of February. But it came back to double-digit again. What are the causes of this high fluctuation in food prices and what are the solutions for them.This article throws light on these vital issues.

What is food inflation?

First,let's look what does food inflation mean. It means a high increase in food prices due to high demand and inadequate supply. It is measured on wholesale price index.(WPI)

Causes

There are many reasons for the inflation of food prices. The root cause is the demand supply missmatch. Following are the main causes of this missmatch.

(1) Natural causes
            Natural causes include supply and distribution side constraints and risks due to natural calamities such as unseasonal rains,cyclones, floods,droughts,pests and diseases leading to devastating effect on crop and livestock. All these natural problems result in defficiancy in supply.(It is to be noted that the demand is always increasing due to rising population and a significant shift in the consumption pattern of the expanding middle class.

(2) High cost of inputs.
             India is a sigmificant importer of phosphatic and complex fertilisers and large subsidies provided to them would be usustainable in the long run leading to balooning fiscal deficit which lead to inflation. Another problem of input cost is the rising prices of fuel which is a key input for transportation of agri commodities to processing or consumption centres. So crude oil prices affects the input cost and leads to inflation to a great extent.

(3) Hoarding and black marketing.
              Illegal trading activities like hoarding and black marketing by intermediaries in the distribution system is a major problem faced by the country.

(4) Unscientific farming.
               Relectance from the part of farmers in adopting new technologies in farming is a major problem faced by Indian agricultural sector.

(5) Low productivity.
                As compared to developed countries,India's crop yields are low and in some cases less than world average. Yield growth rates in 2001-2010 have stagnated to <1.5 percent for rice and wheat as compared to over three percent in the 1980s.

(6) Non-availability of high yeald seeds at low price.
                Even though many universities research labs and other corporate entities have developed good high productive seeds having good resistance to diseases, they are not easily available to small farmers at a low cost.

(7) Unrealistic whether forcasting system.
                 Whether forcasts are vital information to farmers in reducing the risk of bad whether and taking advantage of good whether conditions. Today, in India whether forcasting system is not modernised and it should become realistic and we should ensure that it reached to evrery farmers.



Remedies/Solutions.
            Following are considered as major solutions to tackle food inflation and productivity problems.

(1) Increase in farm productivity.
                  There are limitations in expanding agricultural acreage. So there is great significance in improvementin yealds,frpm the available land.
                
                   Urgent focus is needed to enhance farm productivity by way of technology transfer in seeds,advanced agricultural practices including farm mechanisation and drip irrigation and other agri-inputs.

(2) Lower the cost of inputs.
                   Government should take immediate measures on redusing the cost of inputs.

(3) Increase the share of irrigated land.
                   Water would play an extreamely important role in food security and food prices. to cater this need,various irrigation projects can be viable long term solution.

(4) Improve storage and processing infrastructure.
                   Inefficient and insufficient post harvest storage infrastructure results in loss of over 10 percent of food grains and fruits & vegitables produced. Improvement in post harvest processing and storage utilities can also significantly contribute to reduction in losses and longer shelf life for perishable.

(5) Improvements in supply chain.
                  Incentives should be given to processors and organised retailers to procure directly from the farmer groups and minimise the layers in supply chain which add to the pricrs of agri-commodities.

(6) Broadening the procurement base.
                Policies should be taken to improve the procurement base in water abundant areas in the      North-East.

(7) Public distribution system.
                Improving the public distribution system by a better coordination with the central government would keep a check on horders and black marketers.

(8) Advanced whether risk modeling and forecasting systems.
               Advanced whether information from renowned whether institutions should be sought to decide the regions and quatum of insurance required to cover the risk.

(9) Development of crops that can withstand abnormal whether conditions.
             Agriculture universities and private players are working on developing draught tolerant crops. IRRI in Manila is working on paddy strains that can withstand submerged water conditions in fields and in saline waters. Boosting such studies and enabling commercial launch will help mitigating the risk of crop loss by draught or flood.

(10) Adoption of new technology.
             Without dought, tecnolgy like new communication systems and supplay chain management systems can improve food production and processing.



CONCLUSION

                   Tackling food inflation is the key priority of the Government and policy makers as it impacts the weaker sections of the society. The issue should be tackled by addressing supply side risks through economic and policy oriented actions and by mitigating risks due to natural calamities. Only an integrated approach would ensure long term food security.




        

Adline Adline Adline!!!!!!

• 'Just do it' - Nike
• 'Power of Dreams' - Honda
• 'Be 100% Sure' - Dettol
• 'The Art Of Power' - Toyota Fortuner

More on capital markets!!!!!!

• What is FTI related to public issue of securities?

                                 Fast Track Issue

• What is SPN?

                     Secured Premium Note

• QIP - Qualified Institutional Placement

• ICRA - Information and Credit Rating Agency

• REPO - Repurchace Agreement

• Which is the largest stock exchange in the world in terms of number of listed companies?

                                        Bombay Stock Exchange (BSE)

• Bovespa stock exchange is in?

                               Brazil

• TMT stands for ---------------- sectors.

                                 Technology,Media and Telecom

• Which is the base year of sensex?

                               1978 - 79

• Who is the union minister of corporate affairs?

                                Salman Khurshid

          

• Which is the world's most profitable automaker?

                                Ford motor co.

• Name the engine suppliers of Boeing 787 aircraft?

                                    Rolls Roys

• Which is the world's largest bank in terms of net assets?

                                        BNP pariba

• Which is the first mutual fund in India?

                                       Unit 64 of UTI mutual fund

•  AMC stands for?

                       Asset Management Company

• The minimum amount of investment in commercial papers is--------?

                                   Rs.25 lakhs

• SEBI was established in?

                               1988

• Expand FCCB.

                           Foreign Curruncy Convertible Bonds

• Expand CRISIL.

                         Credit Rating Information Services of India Limited

• Who introduced the term 'entrepreneur'?

                                   Richard Cantillon

• What is the basic principle of accounting?

                                  Dual aspect principle

• Which is the first Indian commercial bank to start merchant banking services?

                                        SBI

• Who is the inventor of USB flash storage device(pendrive)?

                                        Henn Tan

• Which term is used to describe the process of trying to destroy the demand for a product?

                                          Counter marketing.

• What is CRM in marketing?

                      Customer Relationship Management

Segmentation Targeting Positioning

• Tata sells it's world truck range under which brand name?

                                       Prima

• What do you mean by STP in marketing?

                                      Segmentation,Targeting,Positioning.

• What is meant by STT with respect to taxation?

                                    Securities Transaction Tax

• What is AMD Ontario?

                                  It is the fusion chip developed by Advanced Micro Devices which combines the features of a CPU and GPU

• ________________________ is a management technique developed by US Navy in collaboration with the Lockhead Aircraft Corporation and Booz Allen and Hamilton.

                                                          Programme Evaluation and Review Technique (PERT)

• Expand ASSOCHAM.

                              Associated Chamber of Commerce and Industries in India

• Who is the brand ambassedor of Nissan Micra?

                                    Ranbir Kapoor

The origin of!

• Which car in the news has name that means 'the origin of'?

                                    Toyota Etios

• Which bank's tagline is "India's International Bank"?

                                     Bank of Baroda

• WOVEN ON PER SEGMENT

             Unscramble the above for a three word slogan of a controvercial media organisation

                                                  
                                                WE OPEN GOVERNMENTS

• Name the e-book reader from Amazon?

                                          Kindle 2

• Which is the budget hotel chain run by Tata Group under the Indian Hotels Company?

                                                  Ginger Hotels

Car in the film !

• Identify the car brand in the still from the film' Anjana Anjani'?

                                                          
                                                    Cadillac

• Which businessman received the global vision award instituted by the Asia society for helping promote understanding between Asians and Americans , in 2010?

                                Reliance industries chairman  Mukesh Ambani.

• Name the CEO of LIC Housing Finance who was arrested by the CBI for the bribe-for-loan issue , recently?

                                                          R.R.Nair

• Who is the founder of Wikipedia?

                                     Jimmy Wales

• Identify this person?

Ans : Julian Assange - Wickileaks  founder

• Which Chinese company will supply Anil Ambani's Reliance power thermal power generation unit's spare parts under a huge $8.3 billion deal?

                                                     Shanghai Electric

• Which is the recent film about Facebook?

                                             Social Network

• Whose IPO did Indian media hail as 'black gold recently?

                                              Coal India Limited

• Who is this?   (hint:she came to India  recently to visit the offices here of the company of which she is the CEO)

                                                        

                                         

                                          Carol Bartz (She is the CEO of Yahoo!)Yahoo! Employees: Jerry Yang, Carol Bartz, Jay Busbee, Terry Semel, Gideon Yu, Vik Singh, Qi Lu, David Filo, Ellen Siminoff

• Which browser godfather is behind the 'Facebook browser' Kockmelt?

                                                        Mark Andreesen

• Which video streaming website has the slogan "Anywhere Anytime"?

                                                     Hulu

• Name the former CEOs of eBay and HP who unsuccusfully contested in California elections recently?

                                                               Meg Whitman and Carl Fiona

• 'Spencer's' retail stores are owned by which group?

                            The RPG group

• Big Bazar,Food Bazaar,and Adhaar are retail chain stores run by which company?

                                              Pantaloon Retail(India) Ltd.

• 'On Time' is the main theme and adline of an airline company's TV Ad. which company is it?

                                                     Indigo airlines

• Microsoft's newly released motion game technology which allows it's users to play games with their body movements is named................?

                                                           Kinect

• 'imposible is nothing' is the adline of ......................?

                                                           Addidas

• Targeting a product or service to a small portion of market which is not resdily served by the main stream of marketers.Which term is used to denote this marketing strategy?

                                                              Niche marketing

• Name the Indian on the board of directors of google Inc. who is behind Sherpalo.

                                                                    Ram Shriram

• With more than 240 million copies sold in it's first year,which has become the fastest selling consumer operating system ever?

                                                                    Windows 7

• What first did a broken laser printer sold for $14.83 create?

                                          First eBay sale (The seller was Pierre Ommidyar

• How did' Tianhe - 1A' make news recently?

                                        Meaning milky way in Chinese,it is the world's fastest super computer,capable of sustained computing of 2.507 petaflaps

• Who is this?

                

                                                                      

                                                       Steve Ballmer - Microsoft CEO

• Expand ESPN

                      Entertainment and Sports Programming Network

• 'We open Governments' - Which website's slogan is this?

                                         Wikileaks

                                                                                                                                                    





• An Indian pharma company recently made a contract with a MNC in the same segment to market their Insulin products. Which are those companies?

                                                     Biocon and Pfiser

• Who is this?                       

                                             Michael T Duke(wallmart president and CEO)

• 'Fuga Hybryd' is the hybrid car from which automaker?

                                             Nissan

• 'Berkshire Hathaway' is owned by?

                                          Warren Buffet

• 'Born of luxury' is the adline of?

                                          Hyundai Santafe

• Which MNC has 'save money,live better' as it's slogan? 

                                        Wal-mart

• which business group has donated $50 million to Harward  Business School?

                                                       Tata group

• 'Glass and a half' the famous slogan has been a part of which famous brand's wrappers for the last 80 years?

                                                              Cadbery Dairymilk

• Which is the most expensive car which is available in Indian market now? 

                                                             Bugatty veyron (16 Crore)

• Taj Hotels Resorts and Palaces had opened a palace in Hyderabad which was foremaly the royal palace of 'Nisam'. Can you name the palace?

                                                              Falaknuma Palace

• Identify the persons in the photo

                   





                                                         Ratan Tata and Raymond Bickson

• 'Menlo' is the codename for...........?

                          Microsoft's upcomming touch screen phone

• Charls Phillips is the president of ........?

                                Oracle

• The upcomming 7-inch tablet computer from RIM?

                                       Playbook

• Which company's name is a Hawaian word meaning smart or intelligent?

                                          Akamai

• Bob miner and Ed oats are the co-founders of..............?

                                   sun microsystems.

• "Fast,easier,bingo" is the tagline of which search engine?

                                   yahoo!

• Identify these persons

.                                   Bill hewlett and David Packard(founders of HP)                                                       HP Pavilion dv4-2173nr 14.1-Inch Laptop - Black
                     

• What is the name of the latest tablet computer of Dell,which was launched worldwide recently?

                                                            Dell Streak.

• Which cyber giant is to buy Netessa,a data warehouse company,for $17 billion in cash?

                                                            IBM

• Cisco's upcomming first of it's kind mobile collaboration business is called?

                                                            Cius

• Name the first commercially available computer with touch screan technology

                                                           HP 150

• 'Globosport' - a celebrity management company is owned by which Indian sports star?

                                                         Mahesh Bhupati.

• Name the makers of 'Dettol'

                                             Reckitt Benckiser