I definitely will let someone else take the Guru title, but the critical elements for a successful VC model are the following (in no particular order):
-The members must have the skills to evaluate business opportunities and the passion to help entrepreneurs succeed.
-There must be adequate deal flow to support the fund size.
-There must be adequate capital in place to capitalize on opportunities. This could be within your fund on through syndication with other funds.
-You must have the appropriate mentors in place to help the portfolio companies.
-You must have the stomach to see a large percentage of your investments go to zero and the level head to maximize the value of the home runs.
I know there are more and I will post them as they come to me! I am a huge fan of Angel/VC capital and applaud your efforts to get involved!
I would also add that the most successful PE folks that I know where successful entrepreneurs themselves. When things hit the fan, having someone who has been there before is much more valuable to both sides (investor and startup) than someone who is just worried that they are about to lose their money.
I do not have big finance and investment background. I do have strong technology background for last 18 years and worked with finance and investment industry in USA. I am interested in starting Private Equity firm for Indian market. I would be interested in starting firm either in USA and fund for Indian businesses as VC or Small Business loans or starting PE firm in India itself. I have lof of questions:
1) What is requird to make PE firm successful
2) My objectives are to fund small and medium business as short term (3-5 year) capital to grow business so does this categorized under PE Firm?
3) What kind of business knowledge is required to start PE firm
4) What regulations are imposed for PE firm?
Gurus, please throw some light on my quesitons...