Frequently Asked
Questions
How does the Company approach SVCL for funding?
How do I submit a plan to SVCL?
What sort of companies does SVCL associate with?
At what stage does SVCL invest?
Is there any geographic focus to SVCL?
What are the key investment criteria for SVCL?
What is the project evaluation process followed by SVCL?
How long does it take SVCL to make an investment or participation decision?
Does SVCL always take a Board seat?
What are the instruments of finance by which VC investment is made? Does
SVCL usually control ownership of a company?
What is SVCL's role after an investment is made?

How does the Company
approach SVCL for funding?
The details of the active funds being managed by SVCL are given in the website www.sidbiventure.co.in. It would be preferable
if the company submits the business plan in a format given in the website. Based
on a preliminary assessment of the business plan, course of further interaction
with SVCL can be decided.
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How do
I submit a plan to SVCL?
You can send an email to info@sidbiventure.co.in
forwarding a copy of the executive summary of your business plan including the profile
of management team. The company can simultaneously forward a hard copy of business
plan along with supporting documents to enable us to make a preliminary assessment
of the proposal.
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What
sort of companies does SVCL associate with?
We invest in companies engaged in wide range of growth sectors, such as life sciences,
retailing, light engineering, food processing, information technology, infrastructure
related services, healthcare, logistics and distribution, etc in the MSME sector.
The Company should have high growth potential so that it can scale up sufficiently
within 3 - 5 years of investment so as to provide a profitable exit to investors
by way an IPO, Strategic Sale, Mergers & Acquisition, etc.
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At what
stage does SVCL invest?
SVCL is focusing on all stages on investment. The Company at the time of investment
should be unlisted.
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Is there
any geographic focus to SVCL?
SVCL proposes to make investment on an all
India basis. Both the funds being managed by SVCL are domestic fund and the investee
Company must be incorporated in India. Part of the investment can be utilised for
investment in opening overseas branch offices/ subsidiaries provided the investment
is beneficial to the parent Company in India.
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What
are the key investment criteria for SVCL?
- A strong committed management
team, established performance record and a high degree on integrity
- Sustainable competitive
advantage
- Scalability of operations
- Potential for above
average profitability leading to attractive returns on investment
- Subscription to equity/
equity type instruments
- Unlisted companies preferably
in small scale/ small scale graduating to medium scale
- Availability of exit
route for Venture Capital investment
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What
is the project evaluation process followed by SVCL?
The Process of evaluation of the proposal involves scrutiny of a business plan,
detailed due diligence including visit to existing facilities/ operation site, reference
check, feedback form clients etc. All proposals are reviewed by an Investment Committee
(IC) which also involves a presentation by the promoters.
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How long
does it take SVCL to make an investment or participation decision?
On an average it should be possible to complete the full cycle of processing of
the proposal including due diligence, sanction, documentation etc. between 8 - 12
weeks. However it is difficult to specify time frames as is depends on a numbers
of factors including the availability of information with the promoters and the
speed with which additional information is furnished.
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Does
SVCL always take a Board seat?
SVCL acts as a partner in its investee companies and insists on a Board seat. The
Board seat is primarily to ensure transparency of operation and facilitating monitoring.
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What
are the instruments of finance by which VC investment is made? Does SVCL usually
control ownership of a company?
Investment is made by way of equity and equity type instruments. Financial structuring
is done on a case to case basis keeping in view factors like risk perception, growth
potential, equity base and market condition. SVCL also co-invests with other VC
funds. SVCL does not take a majority stake in a Company.
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What
is SVCL's role after an investment is made?
SVCL provides "smart money" to entrepreneurs. Apart from finance, SVCL provides
networking and management support as well with the objective to make the company
grow rapidly. SVCL also assists investee companies to attract investment from other
venture capitalists in subsequent rounds of financing.
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