Discuss about the Entrepreneurship Of Venture Capital Firms.
Venture capital is a form of financing which is provided to small emerging firms for high potential growth in the future. The venture capital firms invest in these startup companies in the initial stage for ownership or equity. The startup companies are based on new and innovative technologies (Hbr.org 2017). The startup companies do not have access to capital markets and thus venture capital is an essential source of money. The risk involved in venture capital is high for the investors. However, the venture capitalist can take part in the important decisions of the company. In this era of globalization, venture capital has become a popular source of capital funding because other source of funds such as debts or loans are not easily available to the company. The angel investors who are also known as high net worth individuals (HNWIs) provide venture capital for the small startup businesses. The venture capital industry is envied as an engine of economic growth throughout the world (Hbr.org 2017).
Venture money cannot be regarded as long term money. The venture capitalist in the initial stage buys a stake and then nurtures it accordingly in a short span of time. Finally the capitalist has to exit it with the help of investment banker. The investors who invest in the venture capital funds are usually large institutions such as insurance companies, pension funds and financial funds (Hbr.org 2017). These institutions invest a small proportion of their funds in the high risk investments. The return expected from these investments may range from 25%-35% over the entire period of time. The venture capitalist tries to fulfill the expectation of the investors at an acceptable level of risk by analyzing the investment profile and the structure. The venture capitalist usually spends in the middle stage i.e. the growth stage. They avoid investing in the initial stage of development because the technologies and the market conditions are unknown and uncertain in this stage. Moreover, the capitalist also avoid investing in the later stages because the rate of growth slows down and consolidations become inevitable. The venture capitalist gets extraordinary returns at a much lower risk when they exit the company or the industry before it shuts down completely (Hbr.org 2017).
Jio Technology
Reliance Jio is a mobile network operator in India. It provides wireless 4G LTE service and is the only VoLTe network which do not have 2G and 3G coverage among the 22 telecom services. Jio is in global alliance with the other mobile network operators such as Millicom, Orange S.A., BT Group, Telia Company, MTS, Deutsche Telecom, Telecom Italia and Rogers Communication. The company also shares spectrum with Reliance telecommunications. Recently, in July 2017 it has launched its 4G featured phone which is known as JioPhone. The company also works in collaboration with the local cable operators for expanding its broadband services. Reliance Jio has set up Rs 5000 cr venture capital fund for the startup companies. The company will also play an important role in the promotion of entrepreneurship by providing cheaper services to the entrepreneurs (Business-standard.com 2017).
There are ample of market opportunities for the entrepreneurs of Jio. Reliance Jio will try to capture the entire consumer group in India and thus this will increase the number of online transactions and also increase the market size. The e-commerce market will expand rapidly and thus it will expand the business of the company.
Reliance Jio has targeted the customers of all age group. It has targeted 100 million customers in a very short span of time.
The customers of Jio will prefer to use the services because it is providing attractive packages at a very cheaper cost compared to other telecommunication providers. The customers will get 4G services at an affordable cost initially and thus it will help in the expansion of business.
The company will introduce such tariffs plan which will be attractive and also affordable by all classes of people. It will provide free voice calls to the people which the provided by other companies through payment of a considerable amount of money (Indianexpress.com 2017).
Bettle Express is a logistic company of Singapore which provides quality services to the customers and timely delivery. It connects the two important hubs in Asia. Beetle express provides door to door services in Indonesia from China and Singapore. They also help the customers in clearing their taxes and duties and also delivering important documents on time. They ensure the customers about the shipping and custom declaration and have won the trust of the customers. Bettle Express has direct relationship with the important and major airlines service providers in Indonesia, Singapore and China. The company has ground operational staffs in this major international airport who takes care of the logistics services. The company also provides door-to-door e-commerce distribution services. Beetle Express is preferred by the venture capitalist because it can quickly flourish in a short span of time (Beetleexpress.co 2017).
Beetle Express is providing unique services to the customers. It is a specialist in international ocean freight and thus it is trying to expand on this sector. It is trying to expand in all the major international destinations apart from the three important countries where it operates. Beetle Express is providing services at an affordable rate and thus it is widely preferred by the people.
The target market of Beetle Express is the business group who provides various types of online services of the customers. Beetle Express basically relies on the B2B. The online services which are provided by various companies are outsourced to Beetle Express for logistics so that they can deliver them to the customers.
The customers will prefer to Beetle Express are getting services at an affordable cost compared to other logistics company. They also get the services delivered on time and thus are preferred by a wide number of companies.
The company will expand its services in other countries. It will expand its business from B2B to B2C so that it can reach to the mass market in a short span of time (Empirija.lt 2017).
Zalora is an e-commerce company of Singapore that provides fashion and footwear products to the customers. The company provides a wide choice of branded products to the customers such as Casio, Nike, Puma, Mango and many more. Zalora provides a wide choice to both the genders and also kids of all ages. Zalora provides easy shopping and fun loving experience to the customers. There are various modes of payments which the customers can opt to choose and enjoy their shopping. The customers are provided with secured payment options and they can also keep a track of their products after placing the order. Zalora also provides free shipping to the customers if they shop for a minimum value that is set by the company. The company also provides the customers with various fashion tips and advices. Zalora also provides discounts and online magazines to its premium clients. The company has received equity of $112 million and it will expand more rapidly in the future (Businesstimes.com.sg 2017 ).
Zalora is trying to convert the traditional shoppers who purchases from bricks and mortar store to e-consumers. Moreover, as the economy of Singapore is rapidly growing it has become easier for the company to expand and be one of the leading e-commerce fashion and footwear industry.
The target market of Zalora is the young and the middle aged customers of both the gender. The customers who prefer to buy fashionable products will prefer to use Zalora and thus it will help the company to expand.
The customers will prefer to buy the products from Zalora because it provides unique products at an affordable price. Zalora provides attractive discounts to the customers so that they can always compete with the other e-commerce companies.
The company is trying to expand in other countries and it will also provide the customers with a wide choice of brands. Zalora will prefer to keep the branded items which are comparatively cheaper than top brands so that it becomes easier to expand among the middle income customers who cannot afford to buy branded and costly products every time (E27.co 2017).
Astroscale is a satellite company of Singapore which is trying to grow with various innovative solutions. The main aim of the company is to contribute for the sustainability of the space environment through the development of various innovative technologies. It is also providing services in the removal of debris in spacecraft. Astroscale is investing a huge sum on tracking and monitoring of debris. The company is spreading widely in the global market. The investors of Astroscale will not only contribute for supplying high quality instruments but they will also spend the fund in mass production of debris removal from the satellites. The company will get venture capital from JAFCO. The funds will be raised by JAFCO for accelerating samll manufacturing satellites (Agrivomycosciences.com 2017).
The company will expand its business in space debris removal because it is a social problem and there are very few companies which are investing in these fields. Moreover, the population of space debris is increasing at an alarming rate and it will help Astroscale to expand rapidly in these fields.
The target market of AstroScale will be the aeronautical companies who will purchase the debris and recycle them for their further use.
The customers i.e. the aeronautical company will buy the products and utilize them in research and development. They can also use them in cheap services which are used for demonstration.
The company will spend further amount in research and development and thus it will help them in the development of the company. It will also establish hubs in the overseas market so that it can collaborate with various space programs (Astroscale.com 2017).
The business activities of Agrivo Mycosciences include production of substrates bags and cultivation of medicinal mushrooms and gourmet mushrooms which are used in various fields of research and development. This business is an expanding agribusiness and thus it covers the entire supply chain. Agrivo MycoSciences takes care that produces high quality mushrooms. These mushrooms are supplied in the entire ASEAN market because people prefer to eat nutritious fungi which are free of pesticides. No chemicals are used by Agrivo Mycosciences in the entire growing process. It also manufactures mushroom chips, mushroom goodies, mushroom essence and mushroom soup at an affordable rate. The company mainly caters services to B2C segments and thus they created a brand known as “Mushroom Kingdom”. They also participate in various community events to expand their business and make people aware of their brand. Agrivo Mycosciences also attends the Farmer Market show which is organized by the Singapore People association. The company gets venture from the community market in Singapore for the expansion of its business.
There is a wide market opportunity for Agrivo MycoSciences to expand its business because the company does not use any kind of pesticides and chemicals in the growth of mushrooms. If they produce quality mushrooms, they will be preferred by the hotels and restaurants in preparing various traditional dishes.
Agrivo MycoSciences has targeted the people of ASEAN. The consumers of all age group prefer to eat mushroom. They also targeted the tribal community in these countries.
The customers will prefer to buy mushrooms from Agrivo Mycosciences because they produce quality products. Moreover, the people are much concerned about their health and nutrition and thus they will prefer this company. Moreover, people will get the products at an affordable cost.
The company must try to expand in other countries which will help to increase its brand awareness. Moreover, it must also manufacture mushroom pickles because it is widely preferred by the people of various communities (Agrivomycosciences.com 2017 ).
SpaceKnow is a venture backed startup in the Silicon Valley. This company has developed such products which have helped to track the global economic trends from space. SpaceKnow is trying to capture such imaging platforms which will be available through various kinds of interface. The company is trying to develop these products to keep a close monitoring of the economic activities which will help the clients as well as the consumers. SpaceKnow has made various kinds of analysis in the field of urbanization, construction, vegetation, marine and aircraft. SpaceKnow is one of the leading data analytics providers. The most important products of SpaceKnow are China Satellite Manufacturing and African night Indexes which are used worldwide. The company is also trying to expand in multinational construction and other industries. The U.S. military who is the one of the largest buyer of commercial data through various geospatial imagery is using the products of SpaceKnow. SpaceKnow gets funds from Prattle, a company which is using artificial intelligence for turning various things into tradable signals. It has raised $3.3 m from other investors. Some amount of funds is also provided by BlueYard which is a German venture capital company. BlueYard helps in using artificial intelligence which will help to scan, describe and understand the surface of the Earth using imageries from satellites (Spaceknow.com 2017 ).
SpaceKnow will provide traditional statistics and surveys with various types of social media data and satellite data. This will help the company in capturing the market.
Space Know has targeted the geographical and the industrial intelligence companies. It is uniquely positioned in the market for producing sustainable products which will help to build a viable and large business analytics.
The customers of SpaceKnow will prefer to buy the products because there are no such companies which are providing these products at a cheaper cost. The unique data sets are demanded by the customers because it will give a correct analysis of different sectors of the economy.
The company will try to expand its business and help the customers for authentic analysis of the data sets.
Accelerated Digital Venture provides advisory and technology services to the emerging companies which will help to map out the development or collaborate in partnerships with the other companies. This company tries to help the emerging startup companies by providing resources and research projects from the leading research and development centers. The company also evaluates the assessment of the leading scientists and thus helps them to participate in the research projects. Accelerated venture has a committee of advisors who are engaged in the development of these projects and they help the scientists in the selection of new topics for their proposals or research work. The company has also developed due intelligence platform through collaboration with AnglePlus. AngelPlus has helped Accelerated Ventures in developing a wide network of investors. Accelerated Ventures also uses “CSI Diagnostic Organization Optimizer” for development of mature projects. The accelerator, fund and the sponsorship systems are designed in such away so that it helps in the creation of a closed loop for licensing and innovation. Accelerated Venture has received venture capital from various companies.
Accelerated Venture will expand its business and help the leading companies in their expansion. It will also help the crow funding companies and thus it can expand in this way.
Accelerated Venture will target the startup companies and thus help them in research and development. They will also provide an investment platform for the customers and the corporate in various countries.
The business development of Accelerated Ventures will never stop because it engages a continuous research and development processes.
The company will try to expand among the public and also participate in various joint ventures. It will also help in the development of other companies. Accelerated Venture will also provide licenses to the operating partners i.e. the manufacturer or pharmaceutical companies. Accelerated Venture will also help the leading companies to split the projects and assist those companies in their development (Accelerated.ventures 2017).
ViSenze uses artificial intelligence and computer vision for recognition of the images and visual search in e-commerce websites. It is a Singapore based company that was provided funds by other companies for its startup. ViSenze helps in transforming the commercial sector through artificial intelligence. It helps the shoppers to capture the images and search various items in the store via online mode. The company has been undergoing research and development in computer technology and machine learning. It has recommended several items to the online shoppers on the e-commerce platform to search and browse the pictures or publish the content on the social media platforms. Visenze has also helped in building the technologies that will help in processing pixels and gathering intelligence from these images. They use processing metadata on the visual search startups and thus make it easier for the customers to search the images (Techcrunch.com 2017).
ViSenze will expand its market in the international global market because there is a rise in the number of online shoppers who will be using these technologies for shopping.
The target market of ViSenze is the customers of all age group especially the young women who prefer online shopping.
The customers will prefer to buy products from ViSenze because it provides them unique products and thus they get the videos of those products before purchasing them.
The company will expand its product range and thus it will use more innovative solutions in further development. This will help Vicenza to earn more profit (Visenze.com 2017).
WaveCell is a Singapore based company that helps in creation of API’s for various communication tools. It has helped the developers in the integration of chat, voice, SMS and video calling in various applications. The company is trying to expand in Indonesia, Thailand and Honkong. The company has collaborated with other large cloud communication providers such as Nexmo and Twilio. It has also planned to differentiate its business by focusing on the Southeast Asia rather than expanding in Europe and U.S. This is because it can compete with the other companies if it expands in these countries. WaveCell was funded by a venture capital company named Wavemaker Partners and Qualgro. Wavecell has developed such technologies which has enabled the communication features in websites and apps. WaveCell offers a collection of API’s which helps in the development of the mobile apps. This in turns benefits the customers and thus they can communicate through video calls, SMS, voice calls and other push notifications.
Wavecell will capture the growing market because the API market is growing immensely. The various mobile app developers will use their products and this will help in expanding their business.
The target market of Wave Cell is the app developers of Smartphone. They will use the API for improving the apps.
The customers will prefer to use the products of WaveCell because they are constantly innovating and finding out new solutions which will helps in the development of the company.
The company will expand in other countries and it will also find out new solutions for the development of its business. It will design more apps for smartphones and thus this will help the company in earning more profits (Wavecell.com 2017).
Xfers is a payment gateway and it helps the customers with online bank account in transfer of funds or transaction of business through online payments. It also offers credit card processing and other types of fund transfers to the customers. Xfers receives its fund from a venture capital company known as Quest ventures, Golden Gate Ventures and 500 Startups. The company has helped to build a new payment infrastructure. Xfers is trying to replace the legacy providers and also reducing high cost which is associated with the processing of credit cards. The clients can pay online through a link and this will help benefit the clients. Xfers also helps in accepting the payments on the e-commerce websites. They also integrate the plugins in website with a click.
It will be easier for Xfers to expand its business because people prefer to pay through credit cards rather than cash in delivery. It must develop the apps in such a way so that it is user friendly and people can use it very easily.
The target market for Xfers is the customers who buys various products and make payments through credit cards or other online modes.
The customers will prefer to choose and make payments through Xfers because it will be easier for them to make payments. It will expand its business in future by developing certain apps which can be easily used by the people who do not want to pay through credit cards(Xfers.com 2017).
Conclusion
Thus, it can be said that a company backed through venture capital can expand and flourish in a short span of time. There are various venture capital companies which are providing funds to the startup companies so that they can expand their business in future. The startup companies target a narrow customer base initially and with the expansion of time, they try to expand and develop its business. These venture capital backed companies are suitable for the growing economies. The startup companies will try to expand in the global international market. Thus, it can be said that it will be profitable for the companies who are providing funds to the startup companies.
References
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Agrivomycosciences.com. 2017. Agrivo MycoSciences. [online] Available at: https://agrivomycosciences.com/our-business/ [Accessed 5 Sep. 2017].
Astroscale.com 2017. AstroScale. [online] Available at: https://astroscale.com/ [Accessed 5 Sep. 2017].
Beetleexpress.co 2017. Beetle Express. [online] Available at: https://beetleexpress.co/ [Accessed 5 Sep. 2017].
Business-standard.com 2017. Business Standard. [online] Available at: https://www.business-standard.com/article/companies/foxconn-technology-may-make-4g-feature-phones-for-reliance-jio-117071800041_1.html [Accessed 5 Sep. 2017].
Businesstimes.com.sg 2017. Business Times. [online] Available at: https://www.businesstimes.com.sg/consumer/zalora-the-startup-all-grown-up-hones-its-operations-at-klang-hub [Accessed 5 Sep. 2017].
E27.co 2017. Zalora. [online] Available at: https://e27.co/startup/zalora [Accessed 5 Sep. 2017].
Empirija.lt 2017. Empirija. [online] Available at: https://www.empirija.lt/beetle-express-en [Accessed 5 Sep. 2017].
Hbr.org 2017. Harvard Business Review. [online] Available at: https://hbr.org/1998/11/how-venture-capital-works [Accessed 4 Sep. 2017].
Hbr.org 2017. Harvard BusinessReview. [online] Available at: https://hbr.org/2013/05/six-myths-about-venture-capitalists [Accessed 4 Sep. 2017].
Indianexpress.com 2017. Indian Express. [online] Available at: https://indianexpress.com/article/technology/tech-news-technology/reliance-jio-4g-volte-technology-heres-how-voice-calls-will-work/ [Accessed 5 Sep. 2017].
Spaceknow.com 2017. SpaceKnow. [online] Available at: https://spaceknow.com/ [Accessed 5 Sep. 2017].
Techcrunch.com 2017. Techcruch. [online] Available at: https://techcrunch.com/2016/09/15/singapores-visenze-raises-10-5m-to-bring-the-benefits-of-ai-to-e-commerce/ [Accessed 5 Sep. 2017].
Visenze.com 2017. ViSenze. [online] Available at: https://www.visenze.com [Accessed 5 Sep. 2017].
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