Venture Capitals

[VENTURE CAPITAL] Gaurav Kumar/ 051 SUCESSFUL CORPORATE 1. Paine Webber and Company The company was founded in 1957 by Ken Olsen and Harlan Anderson, two engineers who had been working at MIT Lincoln Laboratory on the TX-2 project. The TX-2 was a transistor-based computer using the then-huge amount of 64 K 36-bit words of core memory. When that project ran into difficulties, Olsen and Anderson left MIT to form DEC. Venture capital of about $70,000 was provided by Georges Doriot and his American Research and Development Corporation. AR&D later sold its investment in Digital for approximately $450 million, certainly the best VC return ever to that point. 2. Siemens Venture Capital Siemens Venture Capital invest in emerging technology start-up companies and contribute to Siemens´ innovation strategy. It accelerate growth of established companies in the Industry, Energy and Healthcare markets and fund their expansion plans..Siemens and its customers more competitive by expanding and improving the products and services that Siemens offers. Second, invest in companies that have the most potential to realize sustainable profitability and success – through a trade sale or IPO. Innovation is our lifeblood at Siemens. SVC feeds into the global network of innovations by bringing new technologies to Siemens´ businesses as a complementary component to Sie-mens´ inhouse research and development activities (3.8 billion Euros and 32,300 R&D experts in 2008). It benefit both Siemens and the companies that receive funding and support. 3. Gujarat Ambuja Cement Ltd It.was set up in 1986. In the last decade the company has grown tenfold. The total cement capacity of the company is 18.5 million tonnes. Its plants are some of the most efficient in the world. With environment protection measures that are on par with the finest in the developed world. The company's most distinctive attribute, however, is its approach to the business. Ambuja follows a unique homegrown philosophy of giving people the authority to set their own targets, and the freedom to achieve their goals. This simple vision has created an environment where there are no limits to excellence, no limits to efficiency. And has proved to be a powerful engine of growth for the company. As a result, Ambuja is the most profitable cement company in India, and one of the lowest cost producer of cement in the world.

INSTITUTIONAL 1. Delhi MRTS

[VENTURE CAPITAL] Gaurav Kumar/ 051 For implementation and subsequent operation of Delhi MRTS, a company under the name Delhi Metro Rail Corporation was registered on 03-05-95 under the Companies Act, 1956. DMRC has equal equity participation from GOI and GNCTD .DMRC, not falling within the category of a Public Sector Undertaking, is vested with greater autonomy and powers to execute this gigantic project involving many technical complexities, under difficult urban environment and within a very limited time frame 2. Pipavav Railway Corporation Ltd Description Pipavav Railway Corporation Ltd.

(PRCL) is a Joint Venture of Indian Railways and the Gujarat Pipavav Port Ltd (GPPL), set up to construct, maintain and operate 270 kilometer long broad gauge railway line connecting port of Pipavav, in the state of Gujarat to Surendranagar Jn. on Western Railway . PRCL is the first infrastructure modal of Public - Private Partnership in rail transportation. PRCL enjoys the status of a Railway Administration, under Railway Act, 1989. 3. Nexus,

Nexus was foamed in 2006 with enterreuer in india and silicon valley. It has $ 320 million under management . it has investment in Suminter dealing in organic Farming. Unicom in Financial Services.

INDIVIDUAL 1. Sam - A Used Car Dealer, Sam, obtained his inventory of used cars from auctions. He

made his purchases with money from private investors. These investors were promised a 50/50 share in the profit from selling the cars to the public. This was a wonderful joint venture deal for everyone - the dealer had his inventory financed at no interest; the investors had their investments fully secured by the cars; and they were also able to double their money in a very short time with relatively little risk 2. 24#7 learning was financed by Kitven who was interested to take advantage of IT boom. With the funding of about 10 $ million started the business which provide on line education services. 3. Office Tiger was financed by RR Donally, who took interest in services at low cost to a company on non permanent basis, the total investment was $250 million for BPO services.

UNSUCESSFUL CORPORATE

[VENTURE CAPITAL] Gaurav Kumar/ 051 1. Go,Com The Walt Disney Company felt the sting of the dot-com bust with its portal

Go.com. Started in 1998, Go.com was a combination of Disney's online properties and Infoseek, in which the Mouse had previously acquired a controlling interest. Though it was meant to be a "destination site" much like Yahoo, Go.com had its own little quirks, such as content restrictions against adult material. Disney was never able to make Go.com popular enough to validate the millions spent on promotion. In January 2001, Go.com was shut down, and Disney took a write-off of $790 million. Go.com still exists, but it carries only feeds from other Disney Web properties. 2. TCL In late 2003, China based TCL Corporation (TCL) and France-based Thomson SA formed a joint venture under the name TCL-Thomson Electronics Corporation (TTE). TTE's core product was television sets which were sold globally. It also produced computers which were sold only in China. The case discusses the rationale for the formation of this joint venture. It highlights the problems faced by TTE and details the reasons why it failed to achieve its objectives 3. Reva Electric Car Company (RECC) joint venture between Bangalore-based Maini Group and California-based Amerigon Electric Vehicle Technologies Inc. The joint venture, has run into trouble. The car, which cost Rs.162,000 ($3,404-4,255) originally, debuted at Rs 200,000 plus. What went wrong? Quite a lot, according to Chetan Maini, managing director of RECC. “When we first approached the government with our plans, they promised us a subsidy of Rs 100,000 ($2127) per car. Also, import duties on some of the components were 8 percent. But, once the R&D was complete, and we were ready to launch Reva in June 2001, no subsidy was forthcoming. Moreover, import duties had doubled to 16 percent.” INSTITUTANAL 1. Global Trust Bank Since 2001, GTB's name was associated with scams and controversies, thereby casting shadows over the credibility of the bank and its management. Due to the over exposure to capital markets and huge NPAs, the bank was in a financial mess. When GTB tried to cover up its monumental NPAs through under provisioning, RBI - the Central bank and the regulatory authority for banks in India, appointed an independent team to review the finances of the bank. The review revealed various financial discrepancies kept covered by the bank. RBI imposed a three month moratorium on GTB on the ground of "wrong financial disclosures" and within two days the bank was merged with Oriental Bank of Commerce (OBC), a public sector bank. With the merger becoming effective, GTB's identity came to an end and it became a part of OBC. 2. Optiva Optiva, a nanotech company that laminated flat-screen TV sets, had to shut down after it failed to continue to raise funding. It initially raised and ran through $41.5 million in

[VENTURE CAPITAL] Gaurav Kumar/ 051 venture capital. The problem was that it took too long to release its product, which was obsolete by the time it came to market. INDIVIDUAL 1. GovWorks.com

Envisioned as a Web site for citizens to do business with municipal government, GovWorks was started by two childhood friends in 1999. One was the flashy salesman, while the other had the technical know-how. At first, the future seemed bright as they suddenly found themselves worth millions of dollars each and rubbing elbows with the politically powerful. But you can guess what happened--everything that could go wrong soon did. Personalities and egos clashed during long work hours, one partner was ousted, technology was stolen, and they never got the software to work as it should have. A competitor eventually took over GovWorks in 2000.

2. Webvan (1999-2001) To take a fast growth In a mere 18 months, it raised $375 million in an IPO, expanded from the San Francisco Bay Area to eight U.S. cities, and built a gigantic infrastructure from the ground up (including a $1 billion order for a group of high-tech warehouses). Webvan came to be worth $1.2 billion (or $30 per share at its peak), and it touted a 26city expansion plan. But considering that the grocery business has razor-thin margins to begin with, it was never able to attract enough customers to justify its spending spree. The company closed in July 2001, putting 2,000 out of work and leaving San Francisco's new ballpark with a Webvan cup holder at every seat 3. Deccan Aviation The airline started operations on 3 December 1997[3]. Deccan Aviation established and wholly owns Air Deccan (98.4%), a low-cost airline set up in March 2003. It also has a 48% stake in Deccan Lanka.When he launched Deccan Aviation it took Captain Gopinath four years to get one helicopter on lease. At every step he faced new bundle of challenges whether they emanated from government controls, competition, or something else. His first Air Deccan flight caught fire and everyone wrote his company off. But he says that he's been an optimist who always refused to give up. He faced all challenges head on, to give India Air Deccan that boasts about fastest aircraft turnaround time, cost efficiency, wide connectivity, and ticketing access. Finally it was sold to UB group.