Globalization Literature

Globalization Literature AHONARUOGHO YEWANDE Globalization is an undeniable phenomenon, which is rather hard to put into words and as a result can be explained in various ways. Globalization which encompasses variant aspects of the modern world, bringing nations of the world closer into a single society through culture, economic transactions, politics, technology and social interactions; is making an ever changing world. GPF (online) [n.d] According to Beck (2000) [online] Globalization regardless of how it is individually interpreted gives the implication of the deterioration of a state’s sovereign poewer and the structures that guide the territory. â€Å"The world-wide interconnectedness between nation-states becomes supplemented by globalization as a process in which basic social arrangements (like power, culture, markets, politics, rights, values, norms, ideology, identity, citizenship, solidarity) become disembedded from their spatial context (mainly the nation-state) due to the acceleration, massification, flexibilisation, diffusion and expansion of transnational flows of people, products, finance, images and information† this states that due to the increased flexibility and ease of mobility of many factors in an economy that social arrangements have become disembedded from their nation states, all of which is known as globalisation. beerkens (2004) [online] â€Å"The characteristics of the globalization trend include the internationalizing of production, the new international division of labor, new migratory movements from South to North, the new competitive environment that generates these processes, and the internationalizing of the state making states into agencies of the globalizing world.† This quote is informing about the concepts and characteristics that make up globalization focusing on the internationalization of many aspects of economies. Cox (1994) [online] Nations tend to come together in form of global unions, these unions are economic to some extent, and such exist within trade blocs. Trade bloc is an agreement which is formed between states, regions or countries in order to reduce the trade barriers which make trading inconvenient, amongst the regions involved. A well know example of this form is NAFTA, which is a trade agreement between the United States, Canada, and Mexico. Opponents to trade blocs view such agreements are harmful to free trade on a global level Investorwords (online) [n.d]. Trade blocs have rules that guide their interaction with nations within the economic union as well as those that are not members of the union. Manish (2012) [online] Trade blocs are of different varieties, requiring different levels of commitment and arrangements from the members of the union. To be of the view that globalization is purely an economic union would be false and incorrect as just trade blocs show globalization as six different forms of unions. Manish (2012) [online] Trade blocs have certain objectives goal which they aim to achieve, one of which is to remove the restrictions to trade among the members of the union, there by promoting free trade and faster movement of resources between members. BMS (2013) [online] Trade blocs aim to improve the social, economical, cultural and political relationship between its members through the integration of economies, social programs could encourage this promoting peace in the region. BMS (2013) [online] Trade blocs have the objective of achieving an increase in economic growth amongst its members. As a result in the reduction in trade barriers, it puts firms in a position to produce at lower prices, which would in turn increase demand and lead to a large scale of production. This can result in economic growth and attract investment. BMS (2013) [online] A Preferential Trade Areas is also a type of trade bloc, interconnecting the nations of the world on an economic level, this is the least committed to trade barrier reductions. In this union members lower but do not eliminate trade barriers amongst themselves and no set arrangement is agreed about their interactions with non- members. Manish (2012) [online] Free Trade Area is the next stage after, the Preferential Trade areas, all trade barriers are eliminated for members when relating with each other, so all the members are able to import and export goods and services amongst themselves. An example is the ‘North American free trade agreement’ of 1994 between the Canadians, Mexicans and the US; these members establish independent trade policies when relating with non members. Manish (2012) [online] another free trade area example is the European Free Trade Area. Shahid (2010) [online] Customs Union is the third trade bloc. The member states remove internal trade barriers as well as also agree to implement the same set of common policies when dealing with non member states. Customs union of Russia, Belarus and Kazakhstan, which was initially created in 2010, is a custom union; other custom unions include European Union Custom Council, East African Community. Manish (2012) [online] The Common Market is a trade union where member’s internal trade barriers are removed, common policies/ barriers are implemented for dealing with trade involving outside parties and free movement of resources such as ‘labor’ exist. Examples of common market include â€Å"Mercosur (Southern Cone Market)†, East â€Å"African Common Market†, European Economic Area and â€Å"West African Common market†. Manish (2012) [online] An economic union is one of the trade blocs that exist between nations that further make the nations of the world more integrated and connected. It requires members to remove internal barriers and agree to use common barriers for externally, allowing free movement of resources and adopt a unified set of economic policies. The European Union is an example of such; with one currency they have adopted one monetary policy. Manish (2012) [online] An economic union such as the European Union speeds up the process of globalization, increasing trade amongst the members of the EU as well as increased labor and capital mobility such as migration of Poland citizens to the United Kingdom and Ireland. The EU has expanded its sphere of influence to over 20 countries, making for over 356 million in population. Pettinger (2008) [online] Other economic unions include CEMC (economic and monetary community of central America), OECS (organization of eastern Caribbean states), UEMAO (west African economic and monetary union).shahid (2010) [online] In addition to the integration of the nations belonging to the trade blocs it is also seen that globalization is further aided by trade blocs which make negotiations easier on a global level. An case relating to trading negotiations is, the European Union bargains as one singular bloc making it easier and faster to push through practices which increase free trade. Pettinger (2008) [online] Full Integration is the final stage, coming after economic union. The members become fully integrated; an example is the United States. Manish (2012) [online] When viewing the definition, principles and aims of both globalization and trade blocs, they complement each other, both resulting in interdependence and increase in trade; Wang (2010) [online]. As a result it is easy to assume that globalization is purely an economic union formed by trade blocs. However, it should be noted that trade blocs can be seen as a hindrance to globalization because it promotes regionalization and not global elimination of trade barriers, causing conflicting parties to fight for regional interest; thereby building trade barriers for the rest of the world and preventing the importation of goods from other countries; Wang (2010) [online].This contradicts with globalizations purpose of one world and interlinking of all nations and â€Å"free trade† amongst all; Wang (2010) [online]. For example, the EU’s CAP placed high tariffs on importation of food and the dumping of surplus food items onto world markets. Pettinger (2008) [online] Trade blocs especially at its most integrated economic level when a common currency is established and a common fiscal policy within the union exists among the members- economic union- it leads to reduction of the power and sovereignty of a national government over its own territory. Although the states can take independent decisions to influence the total demand, income allocation and the level of production of their economies through the use of simple fiscal policies unless common fiscal policy is implemented in the economic union. As a result monetary and fiscal policy integration is the basis for an economic union and the application deepens the integration of its members, making it a single economic union and removes all kinds of economic borders. Hashimov (2013) [online] Trade blocs provide a larger market for exportation of goods, this creates a forum for the global products which can be linked between nations of the world, and this creates the possibility for more revenue for nation states. Admin (2012) [online] Trade blocs due to the integration of markets leads to increase in competition and productivity on the part of the nations belonging to the same trade bloc, ensuring to produce quality goods while the consumers had increased choice and lower prices due to the size of the market and number of competitors. Admin (2012) [online] Trade blocs make for a higher and increased rate of investment due to the larger market available as market is expanded. Admin (2012) [online] Trade blocs however have the negative effect, for example they undermine the efforts of WTO (world trade organization) because there is a possibility that the whole world would become regionalized and that would prevent trade liberations due to the rules and norms associated with trade blocs. Trade blocs would deter the WTO goals and undermine international trade laws. Admin (2012) [online] Trade blocs have the negative effect to globalization of creating unfriendly political tension and â€Å"hindering diplomatic relations† between members of a trade bloc and non member through discriminatory policies. Admin (2012) [online] Other factors unrelated to the trade blocs are important and significant to globalization. The main contributing factors to globalization could be argued but these are some factors that are contributing: Improvement in technology which enable global transport and communication to be carried out much easier, which also helps reduce the barriers of distance. Pettinger (2008) [online] the level of improvement in technology of transport and communications has led to a reduction in the prices for transferring goods, service and factors of production as well as making it easier and cheaper to communicate economically useful knowledge and technology. Mussa(2000) [online] Information technology is a main contributor in the process of globalization in form of a catalyst, it increases the accessibility of information and economic potential. Enabling for efficiency in the economies of nations as political and commercial information can be transferred easily and at a fast rate. Information technology encourages the creative use of resources to promote and advertise new products and ideas across borders and cultures regardless of its geographical location. Technology is now the leading factor of the modern world creating employment, new ideas, and networking sites which enables global connection and communication.globalisation101 (n.d) [online] The growth of multinational companies. Pettinger (2008) [online] Globalization is also a political union of nations around the world, there are military-political blocs existing which is a union among states that have agreed to unite, cooperate and have unified actions and responses to address common political, economic and military tasks. Encyclopedia(1979) [online] an example of a political union is NATO. G. Bertucci and A. Alberti , wrote an article â€Å"Globalization and The Role of the State: Challenges and Perspectives†, in which it was stressed that economic globalization is in actuality as a result of political decisions made my nation. Stating that the expansion of international trade as well as finance and investment Transactions do not radically influence the role of nations while the high level of collaboration and joint active show states exercising their sovereign authority over their territories. Thus the authors are of the view that collaborative action instead of weakening their authority over their state reinforces their authority by creating a more secure global environment and greater possibility for exchanges in different areas. Hashimov (2013) [online] Globalization is also an economic union, it impacts employment, working conditions, income and social protection. Beyond the world of work, the social dimension encompasses security, culture and identity, inclusion or exclusion and the cohesiveness of families and communities. Todayszaman (2010) [online] In conclusion, globalization is an economic union of nations after all globalization is generally referred to as â€Å"economic globalization† as it brings nations of the world together and forms a more integrated and interdependent world. Economic union has led to increased flow of information and ideas, and had led to a change in the way nations interact amongst themselves. However it should be noted that economic unions can be seen as a hindrance to globalization itself which contradicts the view that globalization is an economic union and in addition globalization is also a political and social phenomenon not solely economical. Bibliography Electronic devices Admin (2012) [online], advantages and disadvantages of trading blocs, available at http://wisebrain.info/explain-the-advantages-and-disadvantages-of-joining-a-trading-bloc-international/, [accessed on the 3rd of February] Beck (2000) [online], what globalization represents, available at http://www.beerkens.info/files/globalisation.pdf, [accessed on the 1st of February] Beerkens (2004) [online], How globalization is affecting the world, available at http://www.beerkens.info/files/globalisation.pdf , [accessed on the 1st of February] BMS (2013) [online], objectives of trade blocs, available at http://www.bms.co.in/objectives-of-trading-blocs/, [accessed on the 3rd of February] Cox (1994) [online], understanding the chaacterisyics of globalization, available at http://www.beerkens.info/files/globalisation.pdf, [accessed on the 1st of February] Encyclopedia (1979) [online], definition of political blocs, available at http://encyclopedia2.thefreedictionary.com/Military+Bloc, [accessed on the 3rd of February] GPF (online) [n.d], globalization definition, available at http://www.globalpolicy.org/globalization/defining-globalization.html, [accessed on the 2nd of February] Hashimov (2013) [online], economic globalization and the role of nation-state in economy, available at http://www.academia.edu/3721679/ECONOMIC_GLOBALIZATION_AND_THE_ROLE_OF_NATION-STATE_IN_ECONOMY_THE_CASE_OF_EU, [accessed on the 2nd of February] Manish (2012) [online], compositions of trade blocs, available at http://financetrain.com/trading-blocs-common-markets-and-economic-unions/, [accessed on the 3rd of February] Mussa(2000) [online], driving factors of economic integration, available at http://www.imf.org/external/np/speeches/2000/082500.htm, [accessed on the 2nd of February] Pettinger (2008) [online], The significance of economic blocs to globalization, available at http://www.economicshelp.org/blog/1019/economics/trading-blocks-and-globalisation/, [accessed on the 2nd of February] shahid (2010) [online], trading blocs and globalization, available at http://www.slideshare.net/Abdullah2012/globalization-trading-blocks, [accessed on 3rd of February[ Wang (2010) [online], relationship between regional trading blocs and globalization, available at http://www.ccsenet.org/journal/index.php/ijef/article/viewFile/4955/4119, [accessed on the 2nd of February] Todayszaman (2010) [online], social and cultural impact of globalization, available at http://www.todayszaman.com/columnists/dogu-ergil_204938-social-and-cultural-impacts-of-globalization.html, [accessed on the 3rd of February] 1

Teaching For Tomorrow The Changing Role Of Teachers Education Essay

Teaching For Tomorrow The Changing Role Of Teachers Education Essay The above journal is a study conducted by Janet Jenkins. The study focuses on the ICT and its role in learning and how it changes teachers role in an educational setup. ICT is one of many feature motivating transformation in classrooms all over. It is distinguishing in its universal eminence and in its twin function as mutual grounds for change and a ways for attaining it. With the invention of internet, the World Wide Web and also the video conferences, there has been wide scope of communications possibilities for school. A class connected to the internet, has made communication over distance simpler than what it was before. With ICT, the students get to study in a more inclusive environment. It always offers something different irrespective of their individual capacities. ICT gives the students of this era gives the platform and resources to communicate and control what is being communicated. With technology integrated in the classrooms, the instructor no longer organize what is happening in class in terms of control over the information and looses their monopoly of authority they have over the class, students and most importantly on the flow of information. The teachers role with ICT changes into a manager, collaborator, assistor and assessor. But he/she still remains a subject specialist with that of a manager For teachers, becoming facilitators of learning that is organizing teamwork, stabilizing inclusion, managing the classroom activity provides a different challenge. This also results in the fact that most of their time is seen spent supporting the students than having a whole class teaching. ICT enhances learning in classrooms in different ways. The four ways in which it helps learning; they are learning to know, learning to do, learning to live together, and learning to be. (Janet, 2008) With ICT the role of teachers changes in different ways, not just in terms of teaching. The changes includes transform in the relationship with pupils, alteration in the task to of the facilitators and executors who support learning in totality, Change in the content and scope of teaching, and finally Changing locus of control, from teacher to learner. ICT has sparked findings that it has posed a threat to the teachers certified proficiency. Our teachers of tomorrow require a fresh advancement to their career and a innovative idea of what it means to teach and what it means to learn. The new teacher requires to adopt an approach that is fairly broad, to seek out ,to instigate, sustain and aid learning, and finally to create an atmosphere favorable to learning. The author states that , there needs to be an equilibrium between using the advanced technological tools in a class and conventional means of schooling and learning. Efficient incorporation of the ICT in schools may thus, in the long run, entail the alteration of school ethnicity. ICT will possibly, in retrospect, be seen as the vehicle which inspired new ways of philosophy about schooling and learning, and finally opened the classroom to revolutionize. Perceptions that may affect teachers intention to use technology in secondary mathematics classes. The above study is conducted by Robyn Pierce Linda ball. Published online: 16 January 2009, Springer Science + Business Media B.V. 2009 Technology today is not just used in one particular class. It is used in many classes for different subjects to make learning interesting and simple. This study brings to light technology that is available and accessible in many mathematics classes. Adopting the new technologies and matching up to the expectation in order to support learning and teaching requires the teachers of today to modify their teaching practices. This is because teaching mathematics using technology requires a marked change in behavior for practicing mathematics teachers who have taught and have been taught in traditional means, which is through classrooms dominated by work culture of chalk and board and following to pen and paper In using the outline, the researchers worry was mathematics teachers purpose to transform their teaching practice in order to incorporate the technology that they expected to use in the classrooms. The researcher wished to investigate the teachers attitude towards teaching mathematics with technology and also the perceived control over teaching mathematics with technology. . The issue with usage of technology was related to the attitudes of teachers about the technology and their perception of the impact and change it could bring across in the form of threat to him/her. The negative attitude that they have , seem to have stemmed from the belief that technology would not enhance student learning. Their views and practices gradually changed as they observed positive impact on their students learning. The researcher also found that , with the teachers using computers in their mathematics classes, there was a shift in their perception of using computers and the value and significance of having them in their classrooms. These negatives attitudes that was instilled in them before would have acted as barrirs to their non acceptance and restriction of using technology in their classrooms. Thus resulting in intention to change their teaching practices due to their observation and personal experience that technology integration in classrooms can create positive ch ange in a students academics. Teachers who believe that students learn best by working with the pen and paper culture or believes that students should be demonstrated the understanding of mathematics without the aid of technology, may have a negative attitude towards technology. The researcher stated that pen and paper culture be implemented in the initial years of learning and then resort to technology as the level goes higher. This proves the researchers observation that teachers in the school do not use technology even though they are experts in using the advancements because they feel pen and paper method would help students develop more understanding of the mathematical concepts. Teachers are not only bothered about the students understanding of the concepts ,but also their attitudes, which is significant in determining the incorporation of technology in their classrooms. Another reason of resorting to pen and paper culture as they did before resorting to technology was due to the fact that a teachers attitude towards technology usage can also relate to the perception of what changes may occur in their classroom practice. At the same time they perceived the effort that is involved in, learning technology and changing practice. The teachers felt the time required in learning technology was so long that they would have finished the course by then using their normal teaching and learning system. And also the learning will not be a burden but also distract the mathematically weak students as with technology there is no control of information and the teachers role change, also with the monopoly of control they have over them. To which some studies state that using technology will actually enable less able students to explore the study matter through the technology that is used in class

Media, Sports, Athletes, and the Health of Children Essay examples --

"Image is nothing, thirst is everything." This is a slogan used by the soft drink Sprite. It tells a consumer not to buy a product because of the labeling, packaging, or the way it is presented, but to instead buy it because it tastes good. This seems to be an honest and open statement, not what you would expect to hear in an advertisement. Ironically though, just before this slogan flashes on the screen, Kobe Bryant and Grant Hill, two of the NBA's rising starts, are shown talking about how wonderful Sprite is. This slogan contradicts what the rest of the advertisement says, and it contradicts what the advertisement industry tries to do in general. The use of sports icons in advertisements for the food industry, especially those directed towards children, is far from uncommon. Children are led to believe that the health and abilities of the superstars in the commercials will be transferred to them if they use a certain product. This is detrimental to children. Commercials advertising food can be seen on television all the time. The advertising industry is always trying to make one food look better than another does. Often, using professional athlete endorsements does this. At any given time there is at least two professional sports season in session. By using current stars and heroes from those sports to promote their foods, companies try to increase their sales. In the Sprite commercial, Bryant and Hill drink Sprite both on and off the court. After drinking the Sprite, they get a burst of energy, and are able to blow by the opponent and score. A child who is watching television will recognize the two athletes, and tend to watch the rest of the commercial. After seeing how well... ... bad. "Milk Mustache" advertisements are one exapmle of how rpofessional athletes use their influence upon children in a positive way. Milk is an important part of our diet. The milk mustache really catches the eye, and makes the viewer pay attention. This kind of advertisement is beneficial to the children that see it. It promotes a drink that is an integral part of growing children as well as athletes. Unfortunately, the majority of commercials involving athletes are of the latter kind. Children look up to the superstars of today's sports world. They are the children's heroes. What is presented to the viewer in commercials, is misleading. Sports stars need to be more concious of what they are endorsing. To be an athlete, healthy eating is a must. The advertisements and professional athletes today, do not promote or support this. Media, Sports, Athletes, and the Health of Children Essay examples -- "Image is nothing, thirst is everything." This is a slogan used by the soft drink Sprite. It tells a consumer not to buy a product because of the labeling, packaging, or the way it is presented, but to instead buy it because it tastes good. This seems to be an honest and open statement, not what you would expect to hear in an advertisement. Ironically though, just before this slogan flashes on the screen, Kobe Bryant and Grant Hill, two of the NBA's rising starts, are shown talking about how wonderful Sprite is. This slogan contradicts what the rest of the advertisement says, and it contradicts what the advertisement industry tries to do in general. The use of sports icons in advertisements for the food industry, especially those directed towards children, is far from uncommon. Children are led to believe that the health and abilities of the superstars in the commercials will be transferred to them if they use a certain product. This is detrimental to children. Commercials advertising food can be seen on television all the time. The advertising industry is always trying to make one food look better than another does. Often, using professional athlete endorsements does this. At any given time there is at least two professional sports season in session. By using current stars and heroes from those sports to promote their foods, companies try to increase their sales. In the Sprite commercial, Bryant and Hill drink Sprite both on and off the court. After drinking the Sprite, they get a burst of energy, and are able to blow by the opponent and score. A child who is watching television will recognize the two athletes, and tend to watch the rest of the commercial. After seeing how well... ... bad. "Milk Mustache" advertisements are one exapmle of how rpofessional athletes use their influence upon children in a positive way. Milk is an important part of our diet. The milk mustache really catches the eye, and makes the viewer pay attention. This kind of advertisement is beneficial to the children that see it. It promotes a drink that is an integral part of growing children as well as athletes. Unfortunately, the majority of commercials involving athletes are of the latter kind. Children look up to the superstars of today's sports world. They are the children's heroes. What is presented to the viewer in commercials, is misleading. Sports stars need to be more concious of what they are endorsing. To be an athlete, healthy eating is a must. The advertisements and professional athletes today, do not promote or support this.

Children in the Third World Essay -- World Poverty Essays

Children in the Third World We live in an imperfect world where poverty is a reality. Forty thousand children die per year of starvation. Over 1 billion cities face unemployment and poverty day to day. Three-fourth's of the world's largest poverty population live in the Third World Countries, which includes underdeveloped countries, mainly Africa, Asia, and Latin America. Originally the term "Third World" meant all those not supporting communism and the Western countries. Now, it is a term used to describe the poor countries of the world. These countries face hunger, diseases, illiteracy, and poor health care on a day to day basis. They have high population increases, the death rates have lowered over the years, but the birth rates are still high. Because of these increases in population and the low amount of resources available to accommodate these people, hunger is a rapidly increasing problem for the Third World. "The average spending per capita is $660 in a developing country, $13,100 in a developed country, and $19,800 in the United States." "60% of the Third World lives in extreme poverty." "I knew that poverty exists, but it never occurred to me that most of the people in this world live in poverty." (Junior Padma Krishnan) That is the problem with people today, many do not realize what a reality poverty is. That is the key word, "Reality." Many sit back and watch the commercials on children starving in Kenya or the bloated stomachs of the malnourished or undernourished in Somalia, but how many actually think about what a problem this is? What is being done to help these people? Is it fair for those in America who make millions of dollars a year to ignore this and allow these children to starve? Children by far suff... ...s imported from the poor countries, and we buy more food from 36 of the 40 countries. Is this something that we , as Americans, can be proud of? The horrific conditions experienced by the people of the third world are conditions that we can only begin to try to understand. Twenty five percent of children will die before their fifth birthday, and those who live will live without many things they need and are entitled to. Children are the future," they need to be tomorrow's solutions, not tomorrow's problems. There are many people out there working to eliminate poverty and improve living conditions for those in the third world countries, but they cannot do it alone. Everyone should take it upon themselves to do something. It may seem like an impossible to solve, but if everyone would work together, poverty would be lost and the third world would be a better place. Children in the Third World Essay -- World Poverty Essays Children in the Third World We live in an imperfect world where poverty is a reality. Forty thousand children die per year of starvation. Over 1 billion cities face unemployment and poverty day to day. Three-fourth's of the world's largest poverty population live in the Third World Countries, which includes underdeveloped countries, mainly Africa, Asia, and Latin America. Originally the term "Third World" meant all those not supporting communism and the Western countries. Now, it is a term used to describe the poor countries of the world. These countries face hunger, diseases, illiteracy, and poor health care on a day to day basis. They have high population increases, the death rates have lowered over the years, but the birth rates are still high. Because of these increases in population and the low amount of resources available to accommodate these people, hunger is a rapidly increasing problem for the Third World. "The average spending per capita is $660 in a developing country, $13,100 in a developed country, and $19,800 in the United States." "60% of the Third World lives in extreme poverty." "I knew that poverty exists, but it never occurred to me that most of the people in this world live in poverty." (Junior Padma Krishnan) That is the problem with people today, many do not realize what a reality poverty is. That is the key word, "Reality." Many sit back and watch the commercials on children starving in Kenya or the bloated stomachs of the malnourished or undernourished in Somalia, but how many actually think about what a problem this is? What is being done to help these people? Is it fair for those in America who make millions of dollars a year to ignore this and allow these children to starve? Children by far suff... ...s imported from the poor countries, and we buy more food from 36 of the 40 countries. Is this something that we , as Americans, can be proud of? The horrific conditions experienced by the people of the third world are conditions that we can only begin to try to understand. Twenty five percent of children will die before their fifth birthday, and those who live will live without many things they need and are entitled to. Children are the future," they need to be tomorrow's solutions, not tomorrow's problems. There are many people out there working to eliminate poverty and improve living conditions for those in the third world countries, but they cannot do it alone. Everyone should take it upon themselves to do something. It may seem like an impossible to solve, but if everyone would work together, poverty would be lost and the third world would be a better place.

The Return: Shadow Souls Chapter 28

They walked right by the weeping door-guards. But very quickly, they discovered that while almost everyone was listening to Lady Fazina, in each room of the palace that was open to the public, a black-clad, white-gloved steward awaited, ready to give out information, and to keep a watchful eye on his lady's possessions. The first room that gave them any kind of hope was Lady Fazina's Hall of Harpery, a room devoted entirely to the display of harps, from ancient, bowlike, single-stringed instruments, undoubtedly played by individuals who were similar to cavedwellers, to tall, gilded, orchestral harps like the one Fazina was now playing, the music audible throughout the palace. Magic, Elena thought again. They seem to use it here instead of technology. â€Å"Each kind of harp has a unique key to tune the strings,† Meredith whispered, looking down the length of the hall. On each side the line of harps marched into the distance. â€Å"One of those keys might be the key.† â€Å"But how will we even know?† Bonnie was fanning herself lightly with her peacock feather fan. â€Å"What's the difference between a harp key and the fox key?† â€Å"I don't know. And I've never heard of a key being kept in a harp, either. It would rattle around the sound box every time the harp shifted slightly,† Meredith admitted. Elena bit her lip. It was such a simple, reasonable question. She should feel dismayed, should be wondering how they could ever find one small half of a key in this place. Especially considering that the clue they had – that it was in the Silver Nightingale's instrument, suddenly seemed absurd. â€Å"I don't suppose,† Bonnie said a little giddily, â€Å"that the instrument is her voice, and that if we reach down her throat†¦Ã¢â‚¬  Elena turned to look at Meredith, who was looking heavenward – or at whatever was above this hideous dimension. â€Å"I know,† Meredith said. â€Å"No more drinks for birdbrain here. Although I suppose it's possible that they give out little silver whistles or instruments as favors – all big parties used to do that, you know – give you a gift.† â€Å"How,† Damon said in a carefully expressionless tone, â€Å"would they possibly get the key into a favor for a party being given at least weeks away, and how could they ever hope to retrieve it? Misao might as well have told Elena, ‘We threw the key away.'† â€Å"Well,† began Meredith, â€Å"I'm not at all sure that they did mean for the keys to be retrievable, even by them. And Misao could have meant ‘You'd have to search all the garbage from the night of this gala' – or some other party Fazina performed at. I imagine she gets asked to play at a lot of other people's parties, too.† Elena hated bickering, even though she was a champion bickerer herself. But she was a goddess tonight. Nothing was impossible. If only she could remember†¦ Something like white lightning struck her brain. For just an instant – one instant – she was back, struggling with Misao. Misao was in her fox form, biting and scratching – and snarling out a reply to Elena's question about where the two halves of the fox key were. â€Å"As if you would understand the answers I could give. If I told you that one was inside the silver nightingale's instrument, would that give you any kind of idea?† Yes. Those had been the exact words, the real words that Misao had spoken. Elena heard her own voice, repeating the words distinctly now. And then she felt something like an arc of lightning leave her mind – only to meet another's not far away. The next thing she knew her eyes were flying open in surprise because Bonnie was speaking in that blank toneless way she always did when making a prophecy: â€Å"Each half of the fox key is shaped like a single fox, with two ears, two eyes, and a snout. The two fox key halves are gold and covered with gems – and their eyes are green. The key you seek is yet in the Silver Nightingale's instrument.† â€Å"Bonnie!† Elena said. She could see that Bonnie's knees were trembling, her eyes unfocused. Then they opened and Elena watched as confusion surged in to fill the blankness. â€Å"What's going on?† Bonnie said, looking around to see everyone looking at her. â€Å"What – what happened?† â€Å"You told us what the fox keys look like!† Elena couldn't help this exclamation – almost a shout of joy. Now that they knew what they were looking for they could free Stefan; they would free Stefan. Nothing would stop Elena now. Bonnie had just helped move this quest to an entirely different level. But while she was quaking inside with joy at the prophecy, Meredith, in her own level-headed way, was taking care of the prophet. Meredith said quietly, â€Å"She's probably going to faint. Would you please†¦Ã¢â‚¬  Meredith didn't have to ask further, for the vampires, Damon and Sage, were each quick enough to catch and support Bonnie on opposite sides. Damon was staring down at the diminutive girl in surprise. â€Å"Thanks, Meredith,† Bonnie said, and let out a breath, blinking. â€Å"I don't think I'll faint,† she added, and then with a glance up at Damon through her lashes, â€Å"But it's probably just as well to make sure.† Damon nodded and got a better grip, looking serious. Sage turned half away, seeming to have something stuck in his throat. â€Å"What did I say? I don't remember!† And after Elena had solemnly repeated Bonnie's words it was just like Meredith to say, â€Å"You're sure now, Bonnie? Does that sound right?† â€Å"I'm sure. I'm positive,† Elena cut in. She was positive. The Goddess Ishtar and Bonnie had unlocked the past for her and shown her the key. â€Å"All right. What if Bonnie and Sage and I take this room, and two of us can be distracting the steward, while the third looks in the harps for keys?† Meredith suggested. â€Å"Right. Let's do it!† Elena said. Meredith's plan proved to be more difficult in practice than it sounded. Even with two glorious young girls in the room and one terminally fit guy, the steward kept spinning in little circles and catching one or another of them handling and peering into a harp. Naturally, the handling was strictly forbidden. It put the harps further out of tune and it could easily damage them, especially since the only way to make absolutely sure that a small golden key was not in a harp's sound box was to actually shake the harp and listen for rattling. Worse, each of the harps was displayed in its own little nook, complete with dramatic lighting, a flamboyant painted screen behind it (most of them portraits of Fazina playing the harp in question), and a plush red rope across the front of the nook that said â€Å"Keep Out† as plainly as a sign. In the end Bonnie, Meredith, and Sage resorted to having Sage Influence the steward to be entirely passive – something he was only able to do for a few minutes of time, or the steward would notice the gaps in Lady Fazina's program. They would then each frantically search harps while the steward stood like a wax figure. Meanwhile Damon and Elena were wandering the palace, looking through the rest of the mansion that was off-limits to visitors. If they found nothing, they intended to search the more available rooms as the gala continued. It was dangerous work, this stealing in and out of darkened, cordoned-off – often locked – empty rooms: dangerous and strangely thrilling to Elena. Somehow, it seemed that fear and passion were more closely related than she had fully realized. Or at least, it seemed that way with her and Damon. Elena couldn't help noticing and admiring little things about him. He seemed to be able to pick any lock with a single little implement he produced from inside his black jacket, the way other people produce fountain pens, and he had such a swift, graceful way of taking the pick out and putting it back in. Economy of motion, she knew, earned by living for around five centuries. Also, no one could argue it: Damon seemed to keep his head in any situation, which made them a good pair right now when she was striding around like a goddess who could not be bound by the rules of mortals. This was even enhanced by the scares she got: shapes that looked like guards or sentries looming up at her turned out to be a stuffed bear, a slim cupboard, and something Damon didn't allow her more than a glimpse of, but what looked like a mummified human. Damon wasn't fazed by any of them. If I could just channel some more Power to my eyes, Elena thought, and things immediately brightened up. Her Power was obeying her! God! I'll have to wear this dress for the rest of my life: it makes me feel so†¦powerful. So†¦unashamed. I'll have to wear it to college, if I ever get to college, to impress my professors; and to Stefan's and my wedding – just so people understand I'm not a slut; and – to the beach, just to give the guys something to ogle†¦ She stifled a giggle and was surprised to see Damon glance with mock reproach at her. Of course, he was as closely focused on her as she was on him. But it was a slightly different case, of course, because, to his eyes, she wore a big label with STRAWBERRY JAM written on it, tied around her neck. And he was getting hungry again. Very hungry. Next time I'm going to see that you eat properly before you go out, she thought at him. Let's worry about succeeding this time before we start planning for next time, he returned, with just the faintest firefly hint of his 250-kilowatt smile. But it was all mixed in, of course, with a little of the sardonic triumph that Damon always carried with him. Elena swore to herself that laugh at her as he might, beg her as he might, threaten or cajole as he might, she wouldn't give Damon the satisfaction of even one nip tonight. He could just pop the top off another jam pot, she thought. Eventually, the sweet music of the concert was stilled and Elena and Damon dashed back to meet with Bonnie, Meredith, and Sage in the Harpery Hall. Elena could have guessed the news by Bonnie's stance, even if she hadn't already known from Sage's silence. But the news was worse than Elena could have imagined: not only had the three found nothing in the Harpery Hall, but they had finally resorted to quizzing the steward, who could speak, if not move, under Sage's Influence. â€Å"And guess what he told us,† Bonnie said, and added before anyone could venture a word, â€Å"Those harps are each cleaned and tuned every single day. Fazina has, like, a whole army of servants for them. And anything, anything that didn't belong to a harp would be reported at once. And nothing has been! It just isn't there!† Elena felt herself shrink from omniscient goddess to baffled human. â€Å"I was worried it would be like this,† she admitted, sighing. â€Å"It would have been just too easy the other way. All right, Plan B. You mingle with the gala guests, trying to get a look at each room that's open to the public. Try to dazzle Fazina's consort and pump him for information. See if Misao and Shinichi have been here recently. Damon and I will keep looking in the rooms that are supposed to be closed off.† â€Å"That's so dangerous,† Meredith said, frowning. â€Å"I'm afraid of what the penalty might be if you're caught.† â€Å"I'm afraid of what the penalty might be to Stefan if we don't find this key tonight,† Elena retorted shortly, and turned on her heel, leaving. Damon followed her. They searched endless darkened rooms, now not even knowing whether they were looking for a harp or something else. First Damon would check if there were a breathing body inside the room (there might be a vampire guard, of course, but there wasn't much to do about that), then he picked the lock. Things were working seamlessly until they reached a room at the end of a long hall facing west – Elena had long since gotten lost in the palace, but she could unerringly tell west, because it was where the bloated sun hung. Damon had picked the lock of this room and Elena had originally started forward eagerly. She searched the room, which contained, frustratingly, a silver-framed picture of a harp, but with nothing as bulky as the half of the fox key inside it, even when she had carefully used Damon's lock pick to unscrew the backing. It was while she was placing this picture back on the wall that they both heard the thump. Elena winced, praying that none of the black-suited â€Å"security servants† who roamed the palace had heard the noise. Damon quickly put a hand over her mouth and dialed the gaslight knob into darkness. But they both could hear it now†¦footsteps approaching from outside in the hallway. Someone had heard the thump. The footsteps stopped outside the door and there was the distinct sound of an upper servant's discreet cough. Elena whirled, feeling in that moment as if Wings of Redemption were within her reach. It would only require the slightest rise in adrenaline and she would have the security worker on his or her knees, sobbing in the penitence of a lifetime's work at evil. Elena and Damon would be gone before – But Damon had another idea, and Elena was startled into going along with it. When the door opened silently a moment later, the steward found a couple locked in such a tight embrace that they seemed not even to notice the intrusion. Elena could practically feel his indignation. The desire of a couple of guests to discreetly embrace in the privacy of Lady Fazina's many public rooms was understandable, but this was part of the private household. As he turned the lights up, Elena peeked at him out of the corner of her eye. Her psychic senses were open enough to catch his thoughts. He was going over the valuables in the room with an experienced but bored gaze. The exquisite miniature vase with the trailing roses picked out in rubies and emerald-encrusted vines; the magically preserved 5,000-year-old wooden Sumerian lyre; the twin pair of solid gold candlesticks in the shape of rearing dragons; the Egyptian funerary mask with its dark, elongated eyeholes seeming to watch out of its brilliantly painted features†¦all were here. It wasn't even as if her ladyship kept anything of great value here, but still, â€Å"This room is not part of the public display,† he told Damon, who merely clasped Elena closer. Yes, Damon seemed very determined to put on a good show for the steward†¦or something like that. But hadn't they already†¦done so? Elena's thoughts were losing coherency. The last thing†¦the very last thing that they could afford†¦was to†¦lose the chance of†¦finding the fox key. Elena started to pull away, and then realized that she mustn't. Mustn't. Not couldn't. She was property, expensive property to be sure, decked out the way she was tonight, but Damon's to dispose of as he chose. While someone else was looking on, she must not seem to disobey her master's wishes. Still, Damon was taking this too far†¦farther than he had ever taken liberties with her, although, she thought wryly, he didn't know that. He was caressing the skin left unprotected by the ivory goddess dress, her arms, her back, even her hair. He knew how she liked that, how she could somehow feel it when her hair was held and the ends caressed softly or gently crushed in a fist. Damon! She was down to the last resort now: pleading. Damon, if they detain us, or do anything to us that keeps us from finding the key tonight – when will we have another chance?†¦She let him feel her desperation, her guilt, even the treacherous desire she had to forget everything and let each minute carry her further on this wave of ardor that he had created. Damon, I'll†¦say it if you want. I'm†¦begging you. Elena could feel her eyes prickling as tears flooded them. No tears. Elena heard Damon's telepathic voice gratefully. There was something strange about it, though. It couldn't be starvation – he'd had her blood not much more than two hours ago. And it wasn't passion, for she could hear – and sense – that, all too clearly. Yet Damon's telepathic voice was so taut with control that it almost frightened her. More, she knew he could feel that it frightened her and that he chose to do nothing about it. No explanation. No exploration, either, she realized as she found that behind the control, his mind was entirely shut to her. The only thing she could liken the feeling that she got from his steely control was pain. Pain that was just on the edge of the endurable. But from what? Elena wondered helplessly. What could cause him pain like that? Elena couldn't waste their time on wondering what was wrong with Damon. She turned up the Power of her own hearing and began to listen at the doors before they entered. It was while she was listening that suddenly a new idea solidified in Elena's mind, and she stopped Damon in a pitch-dark hallway and tried to explain to him what kind of room she was looking for. What, in modern days, would be called a â€Å"home office.† Damon, familiar with the architecture of great mansions, took her, after only a few false starts, into what was clearly a lady's writing room. Elena's eyes were by now as keen as his in the dimness as they searched by the light of a single candle. While Elena was being frustrated after searching a remarkable desk with pigeonholes for secret drawers, and not finding any, Damon was checking the hallway. â€Å"I hear someone outside,† he said. â€Å"I think it's time to leave now.† But Elena was still looking. And – as her eyes raced across the room – she saw a small writing desk with an old-fashioned chair and an assortment of various pens, from ancient to modern, flaunting themselves from elaborate holders. â€Å"Let's go while it's still clear,† Damon murmured impatiently. â€Å"Yes,† Elena said distractedly. â€Å"All right†¦Ã¢â‚¬  And then she saw. Without an instant's hesitation she strode across the room to the desk and picked up a pen with a brilliant silver plume. It wasn't a genuine quill pen, of course; it was a fountain pen made to look elegant and old-fashioned – with a plume. The pen itself was curved to fit her hand, and the wood felt warm. â€Å"Elena, I don't feel very†¦Ã¢â‚¬  â€Å"Damon, shhh,† Elena said, ignoring him, too absorbed in what she was doing to really hear. First: try to write. No go. Something was blocking the cartridge. Second: unscrew the fountain-pen carefully, as if to refill its cartridge, while all the time her heart was clamoring in her ears and her hands were shaking. Keep moving slowly†¦don't miss anything†¦for God's sake don't let anything fall away and bounce in this dimness. The two parts of the pen parted in her hand†¦ †¦and onto the dark green desk pad fell a small, heavy, curved piece of metal. It had just fit inside the widest part of the pen. She had it in her hand and was reassembling the pen before she could get a good look at it. But then†¦she had to open her hand and see. The small crescent-shaped object dazzled her eyes in the light, but it was just like the description Bonnie had given Elena and Meredith. A tiny representation of a fox with a nominal body and a jewel-encrusted head that sported two flat ears. The eyes were two sparkling green stones. Emeralds? â€Å"Alexandrite,† Damon said in a bedroom whisper. â€Å"Folklore has it that they change color in candlelight or firelight. They reflect the flame.† Elena, who had been leaning back against him, recalled with a chill the way Damon's eyes had reflected flame when he had been possessed: the bloodred flame of the malach – of Shinichi's cruelty. â€Å"So,† Damon demanded, â€Å"how did you do it?† â€Å"This is really one of the two pieces of the fox key?† â€Å"Well, it's hardly something that belongs in a fountain pen. Maybe it's a Crackerjack prize. But you went right to it the moment we entered the room. Even vampires need time to think, my precious princess.† Elena shrugged. â€Å"It's too easy, actually. When it was clear that all those harp keys were no goes, I asked myself what else was an instrument that you'd find in someone's house. A pen is a writing instrument. Then I just had to find out whether Lady Fazina had a study or writing room.† Damon let out a breath. â€Å"Hell's demons, you little innocent. You know what I've been looking for? Trap doors. Secret entries to dungeons. The only other instrument I could think of was an ‘instrument of torture' and you'd be surprised at how many of them you'll find in this fair city.† â€Å"But not in her house – !† Elena's voice rose dangerously, and they were both silent a moment to make up for it, listening, on tenterhooks, for any sound from the hallway. There was none. Elena let out her breath. â€Å"Quick! Where, where will it be safe?† She was realizing that the one fault of the goddess dress was that there was absolutely no place to hide anything. She'd have to speak to Lady Ulma about that for next time. â€Å"Down, down in the pocket of my jeans,† Damon said, seeming to be as urgent and shaking as badly as she was. When he had jammed it deep into the recesses of his black Armani jeans he caught her by both hands. â€Å"Elena! Do you realize? We've done it. We've actually done it!† â€Å"I know!† Tears were leaking out of Elena's eyes and all of Lady Fazina's music seemed to be swelling in one great, perfect chord. â€Å"We did it together!† And then somehow – like all the other â€Å"somehows† that were getting to be a habit with them, Elena was in Damon's arms, sliding her own arms under his jacket to feel his warmth, his solidity. She wasn't surprised, either, to feel a double piercing at her throat when she dropped her head back: her lovely panther was really only a little tamed, and needed to learn a few basics of dating etiquette; such as you kiss before you bite. He had said he was hungry earlier, she remembered, and she had ignored him, too enthralled by the silver pen to put the words together. But she put them together now, and understood – except why he seemed to be so exceptionally hungry tonight. Maybe even†¦excessively hungry. Damon, she thought gently, you're taking a lot. She could feel no response but the raw hunger of the panther. Damon, this could be dangerous†¦for me. This time Elena put as much Power as she could into the words she sent. Still no response from Damon, but she was floating now, down into darkness. And that gave her the vague thread of an idea. Where are you? Are you here? she called, picturing the little boy. And then she saw him, chained to his boulder, curled up in a ball, with his fists covering his eyes. What's wrong? Elena asked immediately, floating near to him, concerned. He's hurting! He's hurting! Are you hurt? Show me, Elena said instantly. No! He's hurting you. He could kill you! Husshh. Husshhh. She tried to cradle him. We have to make him hear us! All right, Elena said. She really was feeling odd and weak. But she turned, along with the child, and cried voicelessly: Damon! Please! Elena says stop! And a miracle happened. Both she and the child could feel it. The little sting of fangs being withdrawn. The stop of energy flow from Elena to Damon. And then, ironically, the miracle began to take her away from the child, with whom she really wanted to speak. No! Wait! she tried to tell Damon, clinging to the child's hands as hard as she could, but she was being catapulted back to consciousness as if by a hurricane. The darkness faded. In its place was a room, too bright, its one candle blazing like a police searchlight aimed directly at her. She shut her eyes and felt the warmth and heaviness of the corporeal Damon in her arms. â€Å"I'm sorry! Elena, can you speak? I didn't realize how much – † There was something wrong with Damon's voice. Then she understood. Damon's fangs were unretracted. Wha – ? Everything was wrong. They'd been so happy, but – but now her right arm felt wet. Elena pulled away from Damon entirely, staring at her arms, which were red and with something that wasn't paint. She was still too worked up to ask questions properly. She slipped behind Damon and pulled his black leather jacket off him. In the brilliant light she could see his black silk shirt marred by line after line of dried, partially dried, or just plain wet blood. â€Å"Damon!† Her first reaction was horror without a touch of guilt or understanding. â€Å"What happened? Did you get in a fight? Damon, tell me!† And then something in her mind presented her with a number. Since she had been a child, she had been able to count. In fact. she'd learned to count to ten before her first birthday. Therefore, she'd had seventeen full years of learning to count the number of irregular, deep, still-bleeding cuts in Damon's back. Ten. Elena looked down at her own bloody arms and at the goddess dress, which was now the horror dress because its pure milky whiteness was marred with brilliant red. Red that should have been her blood. Red that must have felt like sword slashes into Damon's back as he channeled the pain and the marks of the Night of her Discipline from her to him. And he carried me all the way home. The thought came swimming in from nowhere. Without a word about it. I would never have known†¦. And he still hasn't healed. Will he ever heal? That was when she started screaming on all frequencies.

The venture capital and private equity industry

Journal of Indian Business Research Emerald Article: Venture capital and private equity in India: an analysis of investments and exits Thillai Rajan Annamalai, Ashish Deshmukh Article information: To cite this document: Thillai Rajan Annamalai, Ashish Deshmukh, (2011),†Venture capital and private equity in India: an analysis of investments and exits†, Journal of Indian Business Research, Vol. 3 Iss: 1 pp. 6 – 21 Permanent link to this document: http://dx. doi. org/10. 1108/17554191111112442 Downloaded on: 24-09-2012References: This document contains references to 25 other documents To copy this document: [email  protected] com This document has been downloaded 365 times since 2011. * Users who downloaded this Article also downloaded: * Vedran Vuk, (2008),†Taking advantage of disaster: misrepresentation of housing shortage for political gain†, International Journal of Social Economics, Vol. 35 Iss: 8 pp. 603 – 614 http://dx. doi. org/10. 1108/03 068290810889224 Doru Tsaganea, (2011),†Tension reduction by military power equalization: the USA-USSR case†, Kybernetes, Vol. 0 Iss: 5 pp. 778 788 http://dx. doi. org/10. 1108/03684921111142313 Guihe Wang, Ligang Qu, Limin Fan, Tianbiao Yu, Wanshan Wang, (2009),†Web-based system for industry using information and communication technologies†, Kybernetes, Vol. 38 Iss: 3 pp. 533 – 541 http://dx. doi. org/10. 1108/03684920910944254 Access to this document was granted through an Emerald subscription provided by For Authors: If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service.Information about how to choose which publication to write for and submission guidelines are available for all. 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The current issue and full text archive of this journal is available at www. emeraldinsight. com/1755-4195. htm JIBR 3,1 Venture capital and private equity in India: an analysis of investments and exits 6 Thillai Rajan Annamalai and Ashish Deshmukh Department of Management Studies, Indian Institute of Technology Madras, Chennai, India AbstractPurpose – The venture capital and private equity (VCPE) industry in India has grown signi? cantly in recent years. During ? ve-year period 2004-200 8, the industry growth rate in India was the fastest globally and it rose to occupy the number three slot worldwide in terms of quantum of investments. However, academic research on the Indian VCPE industry has been limited. This paper seeks to ? ll the gap in research on the recent trends in the Indian VCPE industry. Design/methodology/approach – Studies on the VCPE transactions have traditionally focused on one of the components of the investment lifecycle, i. e. nvestments, monitoring, or exit. This study is based on analyzing the investment life cycle in its entirety, from the time of investment by the VCPE fund till the time of exit. The analysis was based on a total of 1,912 VCPE transactions involving 1,503 ? rms during the years 2004-2008. Findings – Most VCPE investments were in late stage ? nancing and took place many years after the incorporation of the investee ? rm. The industry was also characterized by the short duration of the investments. The type of e xit was well predicted by the type of industry, ? nancing stage, region of investment, and type of VCPE fund.Originality/value – This paper highlights some of the key areas to ensure sustainable growth of the industry. Early stage funding opportunities should be increased to ensure that there is a strong pipeline of investment opportunities for late stage investors. VCPE investments should be seen as long-term investments and not as â€Å"quick ? ips†. To achieve this, it is important to have a strong domestic VCPE industry which can stay invested in the portfolio company for a longer term. Keywords Venture capital, Equity capital, India, Investments, Financing Paper type Research paper . Growth of the Indian VCPE industry Over the last few years, India has become one of the leading destinations for venture capital and private equity (VCPE) investments. Though the concept of VCPE investment prevailed in the country in one form or another since the 1960s, the growth in the industry was mainly after the economic reforms in 1991. Prior to that, most of the VCPE funding was from public sector ? nancial institutions, and was characterized by low levels of investment activity. In recent years, VCPE commitments and investments in India have grown at a rapid pace.Venture economics data indicate that during the period 1990-1999, India’s ranking was 25th out of 64 and various VCPE funds raised $945. 9 million for investments in India; however, during the next decade, 2000-2009, India’s ranking rose to 13th out of 90 countries and the funds raised $16,682. 5 million for investments in India. Journal of Indian Business Research Vol. 3 No. 1, 2011 pp. 6-21 q Emerald Group Publishing Limited 1755-4195 DOI 10. 1108/17554191111112442 The authors would like to gratefully acknowledge the ? nancial support provided by the Indian Council of Social Sciences Research and IIT Madras for this research.They would also like to acknowledge the support of M. B . Raghupathy and V. Vasupradha for this research. This represents a growth of 1,664 percent over the previous decade. The trend is even more encouraging for the most recent ? ve-year period 2005-2009, during which India’s ranking was 10th out of 77 countries, and various funds raised $15,073. 6 million for VCPE investments in India. Funds raised during 2005-2009, represented a growth rate of 837 percent as compared to funds raised over the previous ? ve-year period 2000-2004. The growth rate in investments made by various VCPE funds has been equally strong.During the ? ve-year period 2004-2008, the industry growth rate in India was the fastest globally and it rose to occupy the number three slot worldwide in terms of quantum of investments[1]. The amount invested by VCPE funds grew from US$ 1. 8 billion in 2004 to US$ 22 billion in 2007 before tapering off to US$ 8. 1 billion in 2008[2]. During the ? ve-year period ending 2008, VCPE investments in India grew from 0. 4 percent of GDP in 2004 to more than 1. 5 percent of GDP in 2008 (Annamalai and Deshmukh, 2009). The rest of the paper is structured as follows: Section 2 indicates the objective of the paper.Section 3 provides details on the data set used for analysis and the sources of data. Section 4, which covers the results and discussion, is divided into six sub-sections. The sub-sections are in the following order: round wise analysis of investments, time of incorporation and ? nancing stage, intervals between funding rounds, investment exits, duration of investment, and a statistical analysis of investment duration and type of exit. Section 5 provides a summary of the paper. 2. Objective of the paper Research on VCPE has not been in tune with the growth seen in the industry.Past research on the Indian VCPE industry can be broadly classi? ed into the following categories: studies that examined the evolution and the current status of the industry (Pandey, 1996, 1998; Verma, 1997; Dossani and Kenney, 2 002; Singh et al. , 2005); multi country studies which also included India (Lockett et al. , 1992; Subhash, 2006; Ippolito, 2007); survey studies of VCPE industry practices in India (Mitra, 1997; Vinay Kumar, 2002, 2005; Vinay Kumar and Kaura, 2003; Mishra, 2004); and studies which can be considered as case studies of VCPE investments (Kulkarni and Prusty, 2007).The objectives of this paper are as follows: ? rst, research that has focused on the recent growth phase of the VCPE industry in India has been limited. Most of the papers that have studied the Indian industry were either before the growth phase (pre-2004) or did not cover the growth phase in full, starting from the onset of growth in 2004 until the slowdown in 2008, caused by the global ? nancial crisis. This paper is an attempt to meet the gap in research on the recent trends in the Indian VCPE industry. Second, there have been very limited studies that looked at the lifecycle of investments, i. . from the time of investme nt in the company until their exit from the investment. There have been several studies that have looked at areas related to investments such as investment decision making, structure of investments, and valuation. Similarly, there have been studies that have looked at topics related to venture exits. However, there have been limited studies that looked at the entire investment life cycle. The main contribution of this paper is to look at the investment lifecycle in its entirety.Third, this paper aims to highlight some of the lesser known features of the Indian VCPE industry such as the characteristics of the investee ? rm at the time of VCPE investment, the duration of VCPE investments in the ? rm, and the timing and mode of exit by the investors. The objective of this paper is to provide an holistic understanding of the Indian VCPE industry to enable the creation of a policy environment to sustain the growth of the industry. VCPE in India 7 JIBR 3,1 8 3. Data set used and sources T his study uses VCPE investment transaction data during the years 2004-2008.The choice for the period of analysis was driven by two considerations. First, it was during this period that the industry witnessed signi? cant growth and India emerged as one of the leading destinations for VCPE investments. Therefore, a detailed study of this industry growth would be of general research interest. Second, the choice of period was also governed by practical considerations. Data on VCPE investments in India before 2004 were not available in a form that can be used for a research study. Therefore, it was decided to begin the starting period of the study at year 2004, the year from which we had access to data.It was felt that a ? ve-year study of transactions would be a reasonable time frame to overcome the yearly ? uctuations. This ? ve-year period also coincided with a full ? nancial cycle in the global ? nancial markets, a period marked by dramatic growth and equally dramatic fall. The data for the study were obtained from multiple sources. To start with, deal data on the various investments and exits were obtained from two database sources: Venture Intelligence India[3] and Asian Venture Capital Journal[4] database. The data from both these databases were combined to form a comprehensive data set.The data set was then suitably checked for data repetition and duplicate data points were removed ? rst. Second, whenever there was a difference in the information given for the same deal, the correctness and accuracy was checked by independent veri? cation from other sources, such as newspaper reports and company web sites. Information that was not available in these databases was then separately sourced from the web sites of the independent companies. Admittedly, with the lack of a strong database on Indian investments, developing such a data set involved a lot of effort.The comprehensive data set that was developed provided various details on the VCPE investments and exits that happened in India during 2004-2008. It consisted of a total of 1,912 VCPE transactions involving 1,503 ? rms during the period 2004-2008. From these 1,503 ? rms, 1,276 ? rms had only investment transactions while another 129 ? rms had only exit transactions during the ? ve-year period. The remaining 98 ? rms had both VCPE investment and exit transactions. To facilitate a more detailed analysis, the investments were classi? ed into ten industry categories and four ? ancing stages based on the lifecycle stage of the investee ? rm and the objectives of the investment. Exits were classi? ed into two categories, namely initial public offer (IPO) and merger and acquisition (M) or trade sale. 4. Results and discussion 4. 1 Round-wise analysis of investments Firms seeking to raise VCPE investments normally receive the investment in multiple rounds (Sahlman, 1990); earlier works have provided several explanations for this trend. Gompers (1995) indicates that the staging of capital infu sions allows venture capitalists to gather information and monitor the progress of ? ms, while retaining the option to periodically abandon projects. Admati and P? eiderer (1994) indicate that such an option to abandon is essential because an entrepreneur will almost never quit a failing project as long as others are providing capital and the threat to abandon creates incentives for the entrepreneur to maximize value and meet goals. Neher (1999) indicates that multiple rounds of ? nancing overcome the potential agency con? icts between the entrepreneur and investor as previous rounds create the collateral to support the later rounds. While the stage of ? ancing is determined by the objectives and timing of investment, the round of ? nancing simply indicates the number of instances of VCPE investments in the ? rm. Thus, for example, Round 1 ? nancing is the ?rst instance of the ? rm getting VCPE investment, but it need not be always early stage ? nancing. Depending on the ? rm lifecy cle and the objectives of investment, Round 1 ? nancing can happen in any of the four ? nancing stages. Similarly, there could be multiple rounds of investment happening in the same stage. In a particular round of funding, there may be many investors jointly investing in the company.For example, when there is a co-investment by more than one VCPE investor at the same time, it is considered as a single round of investment. By the same token, when the same investor makes investments in the ? rm at different times at different valuations, each investment is considered a separate round of funding. Funding rounds are considered to be different when there has been a substantial time gap from the previous round of ? nancing and/or the investment happens at a different valuation from the previous round of funding. Figure 1 shows the results from the round wise analysis of VCPE investments.The results indicate that 82 percent of the total VCPE investments were in Round 1, i. e. ?rst time VCP E investments in the company. Out of the total amount of investment, follow on investments account for only 18 percent. It can be observed that investments decrease sharply with subsequent funding rounds. One possible reason behind this could be because of the nature of data: most of the investment has happened during the later years of the study period[5], indicating that suf? cient time might not have elapsed for the next round of investment.However, these results indicate the possibility that VCPE investments are happening at a much later stage in the ? rm lifecycle and the ? rm is not in need of an additional funding round for reaching a critical size that is needed for an IPO or for ? nding a buyer. This might also be explained by the grandstanding theory (Gompers, 1996), where VCs are keen to exit more quickly from their investments. Second, this trend can also indicate that the companies that have received the ? rst round might not have been able to achieve a strong enough pe rformance to attract the next round of investment from investors.Further studies are needed to understand this pattern in detail. Table I indicates that the number of rounds of funding received by companies in different industries was 1,912 from a total of 1,503 companies. This indicates that the average number of rounds in a company was 1. 27. As can be seen from Table I, a large majority of the ? rms have received only one round of VCPE investment. This result accompanies the results in Figure 1 well, which indicate that 82 percent of the total Round 3 1,061. 85 (2. 6%) Round 2 5,394. 11 (14%) VCPE in India 9 Round 4 391. 25 (1%) Round 5 170. 6 (0. 4%) Round 1 2,961. 47 (82%) Figure 1. Round-wise VCPE investments (in US$mn) during 2004-2008 JIBR 3,1 Industry 10 Table I. Count of companies for different funding rounds Computer hardware Engineering and construction Financial services Healthcare IT and ITES Manufacturing Non-? nancial services Others Telecom and media Transportation and logistics Grand total Count of companies for different funding rounds 1 2 3 4 5 6 7 36 137 110 92 295 214 133 65 93 51 1,226 5 21 30 19 53 25 12 10 15 8 198 1 6 5 6 12 6 5 3 4 3 51 1 1 3 2 3 3 2 1 1 17 1 2 8 1 1 1 1 2 1 3 1 4 2 2 Total companies 43 167 151 120 364 250 153 9 112 64 1,503 investments were Round 1 investments. Only 13 percent of companies have obtained two rounds of funding, and approximately 5 percent of the total companies that have received VCPE investments during the period have obtained more than two rounds. The proportion of companies that have received the second round of funding in different industries is more or less the same as what we saw for Round 1 investments, except in the ? nancial services category. The phenomenon of some industries being more successful in getting Round 2 investments could not be clearly observed in our analysis.In a way, this is a surprising trend. For example, information technology (IT) and information technology-enabled servic es (ITES) companies constitute 24 percent of the total number of companies that have received funding, 24 percent of the companies that have received the ? rst round of funding, and 25 percent of the companies that have received more than one round of funding. This indicates that IT and ITES companies, seen as one of the engines of growth in India, have not had higher proportional success than companies in other industries in attracting multiple rounds of funding.The ? nancial services companies constitute 10 percent of the total companies that have received funding, 9 percent of the companies that have received one round of funding, and 15 percent of the companies that have received more than one round of funding. This indicates that ? nancial services companies have a better track record of getting additional investment rounds. The reasons could be numerous – the larger funding requirements created the need for funding to happen in multiple rounds and companies that had obt ained the ? st round of funding would have been able to showcase a strong performance track record to attract the subsequent rounds of funding. The industry itself was in an upswing in India during the study period and this might have contributed to investor interest in investing in subsequent rounds. It could also be due to the institutional and regulatory features of private equity (PE) investing in India. For example, funding could be done in multiple rounds because of the procedural issues in foreign investments in certain sectors. Further studies are needed to identify the determinants of funding rounds.One would reasonably expect that multiple rounds of funding would be observed in more capital intensive industries. Among the ten industry categories, engineering and construction and manufacturing sectors are very capital and asset intensive. However, it can be seen that the proportion of companies receiving additional rounds of funding in these sectors is not more than the pro portion of companies that have received ? rst-round funding. On the contrary, the proportion of companies receiving additional rounds of funding in manufacturing is less than that of their proportion in Round 1 ? ancing. Several explanations are possible for this trend, which needs to be substantiated with further research. Companies are receiving VCPE funding at a much later stage in the lifecycle and they do not need additional rounds of funding before providing an exit to the investor. It is possible that, because of their asset intensive nature, they are able to get access to debt funding thereby limiting the possibility of additional rounds of VCPE ? nancing. VCPE in India 11 4. 2 Time of incorporation and ? nancing stage It is well known that VC investments happen early in a ? rm’s life.It is during the early stage that companies have limited means to raise money from conventional sources and look to sources like VC for meeting the funding requirements. Table II provide s the results from our analysis of the interval between the year of incorporation of the company and the ? nancing stage. The results indicate some interesting trends. Early stage funding should normally happen within the ? rst couple of years after the incorporation of the ? rm. But in our analysis, we ? nd that 17 percent of the ? rms have received their early stage funding as much as ten years after they were incorporated.While the highest frequency of early stage funding can be seen in the one- to three-year category, a large proportion of companies get their early stage funding even until the ? fth year from the time of incorporation. This indicates the disinclination of the VCPE investors in India to make investments in very early stages. A majority of the growth stage investment happens between ? ve and eight years from incorporation. However, the second highest percentage of growth stage funding happens after 15 years after incorporation. While growth stage ? nancing during the ? e- to eight-year period seems reasonable (though it is still more than that which is normally associated with growth ? nancing), growth ? nancing happening after 15 years from incorporation needs to be studied in detail. It could either be a question of willingness or readiness. Either the investors are not willing to invest earlier or the companies are not ready to receive VCPE funding in their early years. The companies might have explored funding from family, banks, or friends before taking investment from VCPE investors. Financing stage Early Growth Late Pre-IPO Time since incorporation (in years) ,1 20 13. 6% ,3 22 9. 3% 7 2. 3% 7. 7% 1-3 51 34. 7% 3-5 26 11. 0% 15 5. 0% 0 0. 0% 3-5 37 25. 2% 5-8 68 28. 8% 25 8. 3% 6 15. 4% 5-8 13 8. 8% 8-10 36 15. 3% 19 6. 3% 3 7. 7% 8-10 1 0. 7% 10-15 31 13. 1% 61 20. 3% 13 33. 3% Total . 10 25 17. 0% . 15 53 22. 5% 173 57. 7% 14 35. 9% 147 236 300 39 Table II. Number of VCPE deals for different ? nancing stages vs time since incorporat ion of investee companies JIBR 3,1 12 Analysis of late stage investment deals, as can be expected, show an increasing trend with time from incorporation. However, more than half of the late stage deals that have been studied are seen in companies more than 15 years after their incorporation.This again re-con? rms the earlier ?ndings that VCPE investors have been more inclined to invest in companies that have a longer track record and operating history, and have a suf? cient size. From the perspective of companies that are receiving VCPE funding, such late stage funding, could indicate that these companies might have been part of a larger business group, which provided the ? nancial support in their early years. Further studies need to be done to understand the antecedents of ? rms that receive late stage investment.But one of the most compelling observations which attracts immediate attention is that about 75 percent (541 out of 722[6]) deals are in companies that are more than ? ve years old. Almost 60 percent (429 out of 722) VCPE deal investments are made in ? rms that are eight years old or more. This supports the earlier inferences that VCPE funds in India are more inclined to invest in ? rms that have a track record of performance. While this investment trend might not be very different from that which is seen in other emerging economies such as Brazil (Ribiero and de Carvalho, 2008), it is much more marked in India.Therefore, it is felt that most of the VCPE investments in India are in the nature of PE investments rather than VC investments, which are typically investments made in early stage companies. 4. 3 Intervals between funding rounds Table III presents average time intervals in months between different rounds of PE funding (for Rounds 1-3)[7] across industries. The average time interval across industries between Round 1 and Round 2 funding is 13. 69 months, which is just slightly more than year. The average time interval between Round 2 and Round 3 funding is 10. 1 months, which is less than a year. The median values for the above intervals are 12. 17 and 11. 17 months, respectively. The closeness of the mean to median values indicates that there is no signi? cant skew in the time interval between different funding rounds. Figures 2 and 3 show the distribution of time intervals between rounds. These indicate that the deals are well distributed in the initial periods, with a slightly higher frequency around the mean value, and tapering down in the later periods. Since it takes about three to six months from the date of the ? rst signi? ant meeting with the investors to realize an investment, the low time interval between successive Industry Table III. Average time interval between successive rounds of VCPE funding (in months) R2-R1 R3-R2 Computer hardware Engineering and construction Financial services Healthcare IT and ITES Manufacturing Non-? nancial services Others Telecom and media Transportation and logistics Total 14. 43 17. 13 12. 28 14. 89 15. 64 11. 58 13. 93 8. 46 11. 16 9. 54 13. 69 16. 72 4. 88 7. 44 14. 22 12. 43 10. 14 16. 57 6. 03 15. 23 9. 63 10. 91 VCPE in India 50 45 Number of deals 40 35 30 13 25 20 15 10 5 0 3 3 to 6 6 to 9 9 to 12 12 to 18 18 to 24 24 to 36 ? 36 Duration (months) Figure 2. Time between Round 2 and Round 1 investments 14 12 Number of deals 10 8 6 4 2 0 ?3 3 to 6 6 to 9 9 to 12 12 to 18 18 to 24 24 to 36 Duration (months) ? 36 ?nancing rounds indicates that the top management of the company might be continuously devoting their energies in raising capital. This might not be good for business, as spending more time on raising ? nancing is likely to affect their attention to business operations. Our results also indicate that in the Indian context the pace of ? nancing increases with time.This result is somewhat surprising as, under normal circumstances, the size of funding increases with every additional round of funding and is expected to meet the needs of the company for a longer duration even after accounting for the higher cash burn rates due to the increase in company size. Analysis of time intervals for different industry categories indicates that the engineering and construction sector had the largest time interval between the ? rst and second round of funding. Some explanations, which need to be followed with further research, for this trend include being capital intensive.They raise large sums which Figure 3. Time between Round 3 and Round 2 investments JIBR 3,1 help the companies to sustain the operations for a longer period. They are able to get additional funding from other sources such as debt. Cash ? ows from operations would also contribute towards the ? nancing requirements. However, the time interval between second and third round is the lowest for this sector, which indicates that this could be due to the pre-IPO nature of funding. 14 4. 4 Investment exits Venture exit has been an area where there has been limited research (Gomp ers and Lerner, 2004).The VCPE investor after a certain period has to exit the investment to recover the same as well as to earn a return on it. The different possible exit routes play a major role in VCPE ? nancing and the likely availability of favorable exit opportunities in lesser time is one of the key criterions used by investors while evaluating investment opportunities. Though there are several exit routes for the VCPE funds such as IPO, secondary sale of shares, M, management buy outs, and liquidation. Exit by IPOs and trade sale through M are the more prevalent methods of exit in Indian VCPE markets.Of the total 252 exit events that were recorded during the ? ve-year period ending 2008, 84 events were IPOs and the remaining 168 were M. Thus, the ratio of exits of IPOs and M is exactly 0. 5, indicating that an exit by M is twice as likely as that by IPO. However, an analysis of this ratio across different industries provides an interesting picture. The ratio is less than 1 for all but two of the industry categories – engineering and construction, and transportation and logistics. Companies in this sector tend to be capital intensive industries with a large asset base and largely dependent on the Indian market.Since companies in this sector are much larger in terms of revenues or assets, it becomes comparatively easier to achieve an exit by means of an IPO. For sectors, that are not so asset intensive, M seem to be a common form of exit for VCPE investors. Computer-hardware, IT and ITES, and healthcare – all traditionally attractive industries for VCPE investments – show a strong inclination towards M exit routes with the ratio of IPO-M exits being less than 0. 4 (Figure 4). The choice of exit route is also in? uenced by the state of the capital markets. The ratio of IPO-M exits in each of the ? e years during the study period is shown in Figure 5. Figure 4. Ratio of exits by IPO to M across industries Co En m gi pu ne te er r-h in g ar an dw d ar co e ns tru Fi na ct io nc n ia ls er vi ce s H ea lth ca IT re an d IT M ES an N uf on ac -fi tu na rin ci g al se rv ic es Te O le Tr th co er an m s sp an or d ta m tio ed n ia an d lo gi tic s 1. 6 1. 4 1. 2 1 0. 8 0. 6 0. 4 0. 2 0 VCPE in India 0. 9 0. 8 0. 7 0. 6 0. 5 0. 4 15 0. 3 0. 2 0. 1 0 2004 2005 2006 2007 2008 Figure 5. Ratio of exits by IPO to M during 2004-2008 While the overall ratio of IPO-M exits is 0. 5 for the ? e-year period ending 2008, the ratio varies in line with the state of the capital markets. The ratio ranges from 0. 3 to 0. 6 for all years, except 2006, when it is signi? cantly high (. 0. 8). This can probably be attributed to the ? ourish in the IPO market in India during 2006. This is consistent with the ? nding that IPOs are more likely to occur when equity values are high (Lerner, 1994). In addition to the type of exit, the capital markets also in? uence the time taken for an investor to exit. The pattern of variation in an average number of rounds for the two exit methods over the years is shown in Figure 6.It can be noted that there are large variations for those companies that provided exits through IPOs. The number of rounds of VCPE funding before the IPOs are lower during the years 2006 and 2007, when the capital markets were active. Such variations could not be seen in those cases where the exits were from M. The number of rounds of funding before an M has been gradually increasing over the years, indicating that the size needed before an exit from an M has also been increasing over the years. But a more interesting inference could be for companies that exit from anM; the circumstances in the capital markets do not have a signi? cant effect. On the other hand, if the conditions are favorable, companies tend to make their IPOs in a shorter period to take advantage of the momentum in the capital markets. This is also supported by the fact that the average numbers of funding rounds are nearly equal for both the exit types during 2006 and 2007. 3. 5 Average number of rounds 3 2. 5 2 IPO 1. 5 Trade sale – M 1 0. 5 0 2004 2005 2006 2007 2008 Figure 6. Average number of funding rounds before exit during the ? ve years JIBR 3,1 16 4. 5 Investment durationThe duration of a VCPE investment is de? ned as the interval between the time of investment and exit[8]. It is generally considered that VCPE funds are not short-term investors, and stay invested in the ? rm between three and ? ve years; however, our analysis tells a different story. Table IV provides the investment duration for investments in different ? nancing stages. To make our analysis more accurate, this exercise was done only for those companies for which complete data on both investments and exits were available. A total of 110 transactions in 98 companies were included in this analysis.The main ? nding from Table IV is the overall short-term duration of VCPE investments in India. For 63 percent of the investment transactio ns, the average investment duration is less than one year. Even in those investments which can be classi? ed as growth stage, 75 percent of the investments have less than two years’ duration. For late stage investments, the proportion of exits within two years increases to 87 percent. Overall, the average duration of investment stands at just 17 months. In comparison, the investment duration for an IPO exit in the USA and Canada is 4. 7 and 5. 86 years, respectively.The investment duration for an exit through the acquisition route for the USA and Canada is 5. 17 and 6. 94 years, respectively, (Cumming and MacIntosh, 2001). For VCPE investments, which are generally considered medium to long-term investments, the observed duration in India is very low, indicating that most of the investments are late stage or pre-IPO types of investments. While Indian VCPE investors would generally indicate that they are long-term investors, the data corroborates that which many entrepreneurs h ave always felt: that VCPE funds need to be invested in the long term and not focused on quickly exiting from the investment.While these results are interesting, they also suffer from two limitations: the sample size and the ? ve-year time frame for analysis. Further con? rmatory studies that cover a longer time frame with more deals are needed. 4. 6 Statistical analysis of investment duration and type of exit As a part of this study, statistical analysis was done to determine whether any of the variables were able to explain the duration of VCPE investment and the type of exit. For this analysis, Investment duration and type of exit were taken as the dependent variables. Independent variables used in the study were industry, ? ancing stage, region, and type of VCPE fund. Bivariate regressions (Table V) indicate the relative in? uence of each independent variable on the dependent variables. As it can be expected, duration of investment can be best explained by ? nancing stage. The h igh f-ratio and the Financing stage Early Growth Late Table IV. Duration of VCPE investments Pre-IPO ,1 0 0. 0% 14 48. 3% 35 61. 4% 20 90. 9% Duration of investment (in years) 1-2 2-3 3-4 4-5 2 100. 0% 8 27. 6% 15 26. 3% 2 9. 1% 0 0. 0% 6 20. 7% 6 10. 5% 0 0. 0% 0 0. 0% 1 3. 4% 1 1. 8% 0 0. 0% 0 0. 0% 0 0. 0% 0 0. 0% 0 0. 0% .5 Total 0. 0% 0 0. 0% 0 0. 0% 0 0. 0% 2 29 57 22 R S. no. Dependent variable Independent variable(s) 1 2 3 4 5 6 7 8 Duration of Industry investment Financing stage Region Type of VCPE fund Exit mode Industry Stage Region Type of VCPE fund R2 Adjusted R2 SE of the estimate 0. 318 0. 387 0. 159 0. 278 0. 544 0. 429 0. 221 0. 115 0. 101 0. 150 0. 025 0. 077 0. 296 0. 184 0. 049 0. 013 0. 007 0. 118 0. 011 0. 066 0. 212 0. 154 0. 014 0. 001 10. 853 10. 157 10. 876 10. 453 0. 423 0. 439 0. 474 0. 477 ANOVA p-value F-ratio (Sig. ) 0. 938 4. 755 0. 696 6. 952 3. 506 6. 093 1. 389 1. 105 0. 498 0. 004 . 557 0. 010 0. 001 0. 001 0. 252 0. 296 VCPE in India 17 Table V. Results from bivariate regression analysis low p-value indicate the signi? cance of the regression. This can be easily explained as those investing in the early stage would remain invested for a longer duration and those investing in late stages would remain invested for a shorter duration. High f-ratio and low p-values are also noted for the bivariate regression that had a type of VCPE fund as the independent variable. In this study, VCPE funds were categorized into two: domestic and foreign. The fact that this has an in? ence supports the argument that domestic VCPE funds stay invested for a longer duration as compared to foreign funds. It was also noted that industry and stage of ? nancing have more in? uence on the exit mode as compared to other variables. These results can also be explained. Some industries could be more suited for exiting with IPOs because of the market bias. Similarly, many of the late stage and pre-IPO investments are made just before the company goes for an IPO. When these investments are being made, the investee company has a clear road map for going for an IPO.Therefore, the exit route in such late stage and pre-IPO investments are more or less clear at the time of the investment itself, unless there is an adverse change in market conditions. We performed a discriminant analysis in SPSS (Table VI) to predict the probable exit route for an investment, given the independent variables. Discriminant analysis Dependent variable (Y), i. e. exit method Original Count % Cross-validatedb Count % Predicted group membershipa 1 (IPO) 2 (M) Total 1 (IPO) 2 (M) 1 (IPO) 2 (M) 49 5 87. 5 17. 2 7 24 12. 5 82. 8 56 29 100. 0 100. 0 1 (IPO) 2 (M) 1 (IPO) 2 (M) 5 6 80. 4 20. 7 11 23 19. 6 79. 3 56 29 100. 0 100. 0 Notes: a85. 9 percent of original grouped cases correctly classi? ed and 80. 0 percent of cross-validated grouped cases correctly classi? ed; bcross-validation is done only for those cases in the analysis; in cross-validation, each case is cl assi? ed by the functions derived from all cases other than that case Table VI. Results from the discriminant analysis on exit method classi? cation JIBR 3,1 18 is typically used for the prediction of categorical or non-metric variable being classi? ed into two or more mutually exclusive categories.The independent variables used in the discriminant analysis were industry, ? nancing stage, region, and type of VCPE fund. The proportion of cases correctly classi? ed indicates the ef? cacy and relevance of the application of discriminant analysis for predicting the dependent variable, which in this case is the type of exit. Discriminant analysis was done on the investment and exit data for 85 out of 98 companies (for which all necessary details were available). Out of the 85 companies, IPO exits were observed for 56 companies and M for 29 companies. Table VI indicates the results from the discriminant analysis.It can be seen that 49 out of 56 IPO exits and 24 out of 29 M exits were corr ectly classi? ed, thus leaving an error of 12 out of 85 cases. Overall, 85. 9 percent cases are correctly classi? ed. To augment the validity and reliability of the ? ndings, a cross validation was done. In a cross validation, each case is classi? ed using a discriminant function derived from all cases other than the case being classi? ed. The cross validation results indicate that 45 out of 56 IPO exits were correctly classi? ed and 23 out of 29 M exits were correctly classi? ed. Overall, 80 percent of the cases were correctly classi? d. Both these results points towards the good predictive power of the available data in prediction of exit method choice. The results also indicate that it is possible to predict the type of exit based on the information available at the time of making an investment, i. e. industry, ? nancing stage, region of investment, and type of VCPE fund. This could indicate that investors are reasonably clear about the type of exit that they might get from a giv en investment. While the timing of exit might be uncertain, the type of exit seems more or less evident at the time of investment.More research needs to be done to determine whether the variables identi? ed in this paper are a good predictor for exit type or not, even in other markets. 5. Summary The growth and vibrancy in the Indian VCPE industry has attracted global attention. This paper highlights some areas of concern that need to be addressed for the long-term growth in the country. First, there has to be a creation of an ecosystem that encourages early stage investments. It would be such early stage investments that would spur innovation and provide the pipeline for growth and late stage investments.Venture economics data indicate that of the total PE commitments made to India, VC commitments[9] accounted for 90 percent during 1990-1999, 55 percent during 2000-2009, and 51 percent during 2005-2009. This indicates that though there has been an overall growth in funds committed to India, the proportion of VC commitments that primarily fund early stage investments have been gradually decreasing. In the absence of early stage investments, many PE funds would ? nd it dif? cult to ? nd new opportunities for follow on investments. The result would be a funneling of investments in established companies with increasing valuations.In the long run, the industry would fall apart under the burden of such high valuations leading to an exit of investors from India. To prevent this from happening, it is important to ensure that there is adequate early stage investing. Since domestic VCPE investors invest more actively in early stages[10], this points to the need for creating a more stronger and active community of domestic VCPE investors in India. Second, the short duration of VCPE investment does not bode well. A recent World Economic Forum report indicates that PE investors have a long-term ownership bias nd 58 percent of the PE investments are exited more than ? ve y ears after the initial transaction. So-called â€Å"quick ? ips† (i. e. exits within two years of investment by PE funds) account for only 12 percent of deals and have decreased in the last few years (Lerner and Gurung, 2008). Seen from this perspective, most of the VCPE investments in India could come under the category of â€Å"quick ? ips†. This trend, if it continues, would be a cause of real concern. It is expected that VCPE investors would do a lot of hand holding and participate in value-adding activities in their portfolio companies.However, contributing to the investment in such ways would happen only if the investors remain invested for a long term. Short-term investments deny the portfolio companies the opportunity to leverage the management expertise of the VCPE investors. Since the investment duration is also in? uenced by the source of VCPE funds, there is a strong need to promote the domestic VCPE industry in India[11]. The domestic investors would stay invested for a longer duration and this would give more opportunities to the investor to add value in the portfolio companies.Third, the time intervals between successive funding rounds should increase. Frequently, approaching the investors means that the top management attention gets diverted from the business operations. It would be bene? cial if the entrepreneurs and companies raise capital in such a way that the portfolio company can sustain the operations for at least two years. While they might feel that raising a large round would deprive them the bene? ts of valuation increases if funding is raised in multiple rounds, it would de? nitely help to keep the transaction costs lower.The issues of valuation increases can be addressed by incorporating suitable incentive structures in the shareholders’ agreement. The investors too should support the idea of a larger funding round for the companies and engage in co-investing with other VCPE investors if required. Given the exp loratory nature of this study, further research and con? rmatory studies are needed to corroborate the ? ndings of this paper. It is felt that many of the results in this paper are suf? ciently interesting to warrant further studies. Notes 1.Based on Subhash (2006) and PricewaterhouseCoopers Global Private Equity Reports 2004, 2005, 2006, 2007, and 2008. 2. Investment data from the PricewaterhouseCoopers Global Private Equity Reports might not match with that of the funds committed data from venture economics as we feel that many investments might have been made outside of a formal VCPE fund structure. In addition, several funds locally set up in India might not have been captured in the venture economics database. However, both the reports indicate the strong growth in funds committed to various VCPE funds and actual investments made in companies. . Venture Intelligence can be accessed at: www. ventureintelligence. in 4. Asian Venture Capital Journal database can be accessed at: ww w. avcj. com 5. Out of the 1,503 companies that received funding from VCPE investors, 866 companies, i. e. 58 percent of the companies received their funding during the last two years of the study period. 6. Information on time of incorporation was readily available only for 722 out of the 1,503 companies. 7. Since there are very few companies that have received more than three rounds of ? nancing, Round 4 and above have not been included for this analysis.VCPE in India 19 JIBR 3,1 20 8. Strictly speaking, it would dif? cult to determine when the investor actually exited from the investment, either partially or completely. One could ? nd that information by studying the annual reports as well as stock exchange ? lings of the company, which was not done in this study. Exit in this paper is meant to be understood as the time of occurrence of an exit event, which may or may not be the time of actual exit. 9. A distinction can be made between VC and PE commitments. VC commitments are ma inly targeted at the early stage and growth stage investment opportunities.PE commitments are primarily targeted at the late stage opportunities. Average investment in deals by PE funds is usually larger than those made by VC funds. 10. 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(2005), â€Å"Indian VCs’ involvement with investee ? rms: an empirical analysis of board composition, expectations and contribution†, ICFAI Journal of Applied Finance, July, pp. 28-39. Vinay Kumar, A. and Kaura, M. N. (2003), â€Å"Venture capitalists’ screening criteria†, Vikalpa, Vol. 28 No. 2, pp. 49-59. About the authorsThillai Rajan Annamalai is an Associate Professor in the Department of Management Studies at IIT Madras. His research interest includes VC, PE, infrastructure, and corporate ? nance. Thillai Rajan Annamalai is the corresponding author and can be contacted at: [email  protected] ac. in Ashish Deshmukh was an MBA student at the Department of Management Studies at IIT Madras. To purchase reprints of this article please e-mail: [email  protected] com Or visit our web site for further details: www. emeraldinsight. com/reprints VCPE in In dia 21