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.

Top

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.

Top

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.

Top

At what stage does SVCL invest?

SVCL is focusing on all stages on investment. The Company at the time of investment should be unlisted.

Top

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.

Top

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

Top

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.

Top

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.

Top

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.

Top

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.

Top

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.

Top