Venture Capital - Typical constraints of VCF in LDCs（一）.pptVIP

Chief Executives Office Chief Executives Office * Financial Mobilisation and accessibility for enhanced economic growth By Simon Rutega 26th June, 2008 The Financial System Mobilization Allocation Monitoring Operating environment Regulators Intermediaries/players Types of Financing * * Fiscal policy. Monetary policy. Financial stability. Government supportive environment. Tax policy harmonization. Technology. Legal systems in enforcing contracts. Unreliable transport and energy infrastructure. Operating Environment * Conventional channels of financing. Shallow financial systems. Payment systems. Tax administration. Corporate governance systems. Cost of finance. Difficulty with technical competencies. Inadequacy of management information systems. Financial intermediation. Operating Environment Banks FDI/FPI Venture Capital/private equity Institutional investors Capital markets Term finance Remittances Supporting the fundraising activity! * Sources of Capital Appropriate financing is required! Venture capital and private equity-start ups and early stage-expansion. Banks-loans-working capital. Mortgage Finance Capital markets-long term, expansion, exit, replacement cost. Term Finance. * Investment Criteria Business operating environment. Enterprise criteria-corporate governance, growth trend, competitive advantage. Performance Criteria-Management team, track record, growth plan, record keeping, business strategy. Developmental-social impact, job creation, economic impact, environmental impact. Investment process Deal origination Investment analysis and screening, management, projected financials, deal structure, pricing etc Due diligence-detailed, risk adjusted minimum rate of return, legal review, evaluation of HR competence, valuation! Investment commitment, close the deal! Rate of return-Exit! Reforms Policies to accelerate capital accumulation. Pension reform. Capital Markets/insurance development. Skills development. Segmenting finance. Technol