Venture capital refers to equity financing provided to early-stage, high-potential companies. Venture capitalists seek extremely high returns of 30-60% annually through investing in companies and later exiting via IPO or acquisition. They take high risks but also provide active support like board membership and business advice to their portfolio companies. Venture capital funds are typically raised from investors for 10-12 years and invested in companies across different development stages from seed to growth. Venture capitalists closely evaluate company management, product or service idea, market potential and financial projections before investing. They then actively monitor their investments and provide guidance.

2. Outline :
• What is Venture Capital?
• Background of Venture
Capital

3. PERUSAHAAN MODAL VENTURA
Perusahaan modal ventura (venture capital company) adalah badan usaha
yang melakukan pembiayaan dalam bentuk penyertaan modal ke dalam suatu
perusahaan yang menerima bantuan pembiayaan (investee company) untuk
jangka waktu tertentu (pasal 1 Keppres No. 61 Tahun 1988)
KETENTUAN-KETENTUAN MODAL VENTURA
1. Keppres No. 61/1988 tentang Lembaga Pembiayaan
2. KMK No.1251/KMK.013/1998 tentang Ketentuan dan Tata Cara
Pelaksanaan Lembaga Pembiayaan
3. KMK No. 469/KMK.01/1995 tentang Pendirian dan Pembinaan Usaha
Modal Ventura
4. KMK No. 58/KMK.017/1999 tentang Pengawasan Kegiatan
Perusahaan Modal Ventura Daerah

4. KARAKTERISTIK MODAL VENTURA
 Penyertaan modal berjangka menengah/panjang dan bersifat sementara
 Bertujuan memperoleh return atas investasinya secara maksimal melalui
capital gain, bukan penghasilan berupa dividen
 Dapat disertai dengan keterlibatan dalam proses pengelolaan atau pemberian
bantuan teknis lainnya
 Pembiayaan dilakukan berdasarkan pertimbangan kuat atau lemahnya kondisi
pengelolaan perusahaan, perkembangan kegiatan usaha di masa lampau,
potensi pasar dan prospek usaha, bukan atas dasar pertimbangan
tersedianya kolateral yang cukup
PIHAK-PIHAK YANG TERLIBAT DALAM PEMBIAYAAN MODAL VENTURA
 Perusahaan modal ventura (PMV)
 Perusahaan pasangan usaha (PPU)
Perusahaan yang memperoleh pembiayaan dalam bentuk penyertaan
modal dari PMV

5. What is venture capital?

6. Introduction

7. What is venture capital?
 Venture capital is equity financing to
high risk young companies (sometimes
also a combination of other financing
instruments)
 Venture capitalists are, before
everything else, after extremely high
returns on investments (30-60% per
annum depending on the risk)
 High expected return of VCs makes it
very expensive financing method for
entrepreneurs
 Risk is considered higher the earlier the
development phase of the venture is

8. Types of risk financiers

9. Stages of VCs investment

10. VC investment & exit
Promoters
with
Project Prelimnary Term Sheet Due
Initial Project Signed by Diligence
Meetings Review by Venture Review of
Venture Capitalist & Project
Capitalist Promoters
Venture
Capitalist
with Funds
Promoters
Divestment Mentoring Investment Legal
& Exit & made by Documents
from Monitoring Venture /Agreement
Project of Project Capitalist Signed
in Project
Venture
Capitalist
10

11. What a project must have?

12. VC looks for

13. What a VC does?
 Each fund manager mentors only a handful
of projects
 While fund size is big, no. of investments
cannot be too much, hence project size
increases
 Unlike debt/other investor, VC is not silent
spectator, often is on the board of investee
company

14. JENIS–JENIS PEMBIAYAAN MODAL VENTURA
PMV memberikan pembiayaan modal ventura kepada PPU dalam bentuk:
• Penyertaan saham: penyertaan langsung melalui pembelian saham CPPU
oleh PMV. Syaratnya adalah CPPU harus sudah dalam bentuk PT atau akan
menjadi PT bersamaan dengan masuknya PMV sebagai pemodal
• Obligasi konversi: CPPU menerbitkan obligasi kepada PMV dengan
perjanjian akan dapat dikonversi menjadi saham pada waktu yang
ditetapkan. Syaratnya adalah CPPU harus sudah dalam bentuk PT atau
akan menjadi PT bersamaan dengan masuknya PMV sebagai pemodal
• Pembiayaan bagi hasil: jenis pembiayaan di mana suatu persentase
tertentu dari keuntungan pada periode tertentu telah terlebih dulu disepakati.
Syaratnya adalah CPPU harus sudah dalam bentuk PT atau akan menjadi
PT bersamaan dengan masuknya PMV sebagai pemodal

15. What is venture capital?

16. What is venture capital?
 Funds are usually :
 Raised from the investors
(limited partners)
 By the firm (general
partners)
 For a set period of time
(around 12 years)
 Supposed to return
above-average interests
 By investing in private
companies and exiting
via IPO or buyout

17. Characters of venture
capital
 Private  Academic
 Professionally managed  Intellectual property
 Return on investment focused  Spin-outs
 May bring network, business  Government
advice, credibility, etc.  Create new jobs and grow
economy
 Corporate  Offer cash, tax incentives, in-
 Manage risk kind
 Distribution networks  Stem brain-drain
 Product R&D  Angels
 Operational skills  May bring network, business
 Spin-outs
advice, credibility, etc.
 Live vicariously

18. Venture capital triangle
Investment Exit
opportunities opportunities
RETURNS
Capital ($)

19. What VC firms look for?
• Bank looks at its immediate future;
influenced by historical data/experience
• VC look to its longer run future
• For VC; product feature, its prospect, its
marketability  financial analysis
• Bankers are creditors; VC are owners
• Invest in long term capital, not interest
income

20. What VC firms look for?

21. Types of VC firms

22. Investment assessment points
by VCs
Market
Management
Products & Financial
Skills
Viability
- Character - Function
- Commitment - Idea - Demand
- Competence - Better to have: - Test market
- Capability Prototype - Market survey
- Completeness Pilot Plant - Financial
(team) projections

23. Types of deals
Category ROI (%) Probability of
Making Projection
(%)
Big Winner 100 10
Winner 30 50
Sideways 10 20
Workout 0 10
Loser (50) 5
Wipeout (100) 5
Total 100

24. Investors’ standard
Stage of Investment Expected Return to
Investor (%)
Seed capital 100
Start up 50
Second round 40
Third round 30
Bridge to public offering 25
Turnaround company 50
Leveraged buyout 35

25. Investment monitoring

26. Warning signs
 Late payments  Inventory changes
 Loss of profits  Lack of planning
 Late financial reports  Changes in accounting method
 Poorly prepared financial reports  Loss of major customer, supplier, or
 Large changes in balance sheet lender
items  Labor problems
 Major adjustment in figures
 Changes in prices and market share
 Significant changes in
management  Technical change
 Major changes in sales  General industry decline