>> Deal Origination

For JIT Capital venture capital business, a well marketable and saleable deal is necessary. There may be various types of deals but a partner should be able to present a deal with written concept note on a viable/promising business.  The focus of the venture capital business is that the proposing business will collaborate with JIT Capital to provide either an equity or a debt capital. 

 

>> Screening

JIT Capital venture capital scheme will choose the best venture by undertaking preliminary scrutiny of all projects based on certain broad criteria, such as commercial viability of product, market scope, size of investment, geographical location and stage of financing.  JIT Capital will ask applicants to provide a brief profile of the proposed venture to establish prime facie eligibility. Entrepreneurs will also be invited for face-to-face discussion for seeking certain clarifications.

 

>> Evaluation

After a proposal has passed the preliminary screening, JIT Capital will conduct a business   evaluation of the plan.  A detailed study of project profile, track record of the entrepreneur, market potential, technological feasibility future turnover, profitability, etc. is undertaken. JIT Capital will factor in the entrepreneur’s background, especially in terms of integrity, long-term vision, urge to grow managerial skills and business orientation. The company will also consider the entrepreneur’s entre-preneurital skills, technical competence, manufacturing and marketing abilities and experience. Further, the project’s viability in terms of product, market and technology is examined. JIT Capital will also undertake thorough risk analysis of the proposal to ascertain product risk, market risk, technological and entrepreneurial risk. After considering in detail various aspects of the proposal, venture capitalist takes a final decision in terms of risk return spectrum.

 

>> Deal Negotiation

Once the venture is found viable, JIT Capital will negotiate the terms of the deal with the entrepreneur. This it done to protect the interest of the company. Terms of the deal include amount, form and price of the investment.  Negotiations will also be done on the role of JIT Capital to control the venture company and to change its management, if necessary, buy back arrangements and acquisition. Terms of the deal should be mutually beneficial to both venture capitalist and the entrepreneur. It should be flexible and its structure should safeguard interests of both the parties.

 

>> Post Investment Activity

Once the deal is financed and the venture begins working, the JIT Capital will associates itself with the enterprise as a partner and collaborator in order to ensure that the enterprise is operating as per the plan.  JIT Capital will participation in the enterprise is generally through a representation in the Management and Board of Directors or informal influence in improving the quality of marketing, finance and other managerial functions.

 

>> Exit Plan

The last stage of our venture capital financing is the exit to realise the investment to make a profit/minimize losses. The business venture should have an exit plan, determining precise timing of exit that would depend on factors, such as nature of the venture, the extent and type of financial stake, the state of actual and potential competition, market conditions, etc.  At exit stage of venture capital financing, JIT Capital decides about disinvestments/realisation alternatives, which are related to the type of investment, equity/quasi-equity and debt instruments.