The Indian Venture and Alternate Capital Association (IVCA), in partnership with the Centre for Business Innovation (CBI) at the Indian School of Business (ISB), launched a training programme to improve investment governance among private equity and venture capital fund managers. The risks faced by private equity and venture capital firms have increased manifold today due to the rapidly changing business environment. There is also increasing complexity of business models and the sophistication with which companies can indulge in opportunistic behaviour at the expense of investors.
One common strategy adopted by private equity and venture capital firms to protect their investment is to nominate a director on the board of a start-up company. This programme is designed specifically to address the needs of such professionals appointed by private capital funds on the board of ‘early to growth’ stage companies. IVCA said this programme also attempts to strike an optimal balance between theory, practice and real-world experience.
“Private equity and venture capital firms over the past decade have played a significant role in supporting and nurturing innovation in early-stage companies,” said Karthik Reddy, co-founder of Blume Ventures and chairperson of IVCA. “Safeguarding against such risky investments is a challenge and it will be the key to determine the progress of the private capital market in India.”
This would also help participants better understand the economic drivers of business performance and valuation by enhancing strategic thinking and critical analysis. The programme is sponsored by IVCA members – Accel, Ascent, Catamaran, Peak XV Ventures, Ski-Capital, T-Hub and TMF Group.
Rajendra Srivastava, Novartis Professor of Marketing and Innovation at the Indian School of Business, said the aim is to help develop a robust venture capital investment market to support business innovation and value migration in India.
Sanjeev Bhikhchandani, founder and executive vice-chairman of Info Edge, said this programme will offer a guideline for good governance and the importance of independent directors on a board. He said good governance helps to build an environment of trust, transparency and accountability. This is necessary for fostering long-term investment, financial stability and business integrity. This reflects the health of an organisation. “For India to continuously produce world-class companies and start-ups, the responsibilities of the board will considerably increase,” said Bhikhchandani. “This is to ensure the best corporate governance practices for effective decision-making and risk management in the future.”
