March 14, 2024

Venture capital (VC) is generally used to support startups and other businesses with the potential for substantial and rapid growth. VC firms raise money from limited partners (LPs) to invest in promising startups or even larger venture funds.  What Is a Venture Capitalist? A venture capitalist (VC) is a private equity investor that provides capital to companies with high growth potential in exchange for an equity stake. A VC investment could involve funding startup ventures or supporting small companies that wish to expand but have no access to the equities markets. Venture capitalist firms are usually formed as limited partnerships (LPs) where the partners invest in the VC fund. A committee is usually tasked with making investment decisions. Once those promising emerging growth companies are identified, the pooled investor capital is deployed to fund these companies in exchange for a sizable equity stake. Contrary to common belief, VCs do not normally fund a startup at its outset. Instead, VCs seek to target firms bringing in revenue and looking for more money to commercialize their ideas. The VC fund will buy a stake in these firms, nurture their growth, and look to cash out with a substantial return on investment (ROI).Venture capitalists typically look for companies with a strong management team, a large potential market, and a unique product or service with a strong competitive advantage. They also look for opportunities in industries that they are familiar with, as well as the chance to own a large percentage of the company so that they can influence its direction. How Does Venture Capital Work? Entities offering VC invest in a company until it attains a significant position and then exits the same. In an ideal scenario, investors infuse capital in a company for 2 years and earn returns on it for the next 5 years. Expected returns can be as high as 10x of the invested capital. Financial venture capital can be offered by – Venture capital firms, Investment banks and other financial institutions, High net worth individuals (Angel investors), etc. Venture capital firms create venture capital funds – a pool of money collected from other investors, companies, or funds. These firms also invest from their own funds to show commitment to their clients. Venture Capital Structure The general structure of the roles within a venture capital firm varies among firms, but they can be broken down into roughly three positions:  Associates: These individuals usually come to VC firms with experience in either business consulting or finance and, sometimes, degrees in business. They tend to do more analytical work, analyzing business models, industry trends, and sectors. They also work with the companies in a firm’s portfolio. Although they do not make key decisions, associates may introduce promising companies to the firm’s upper management. Principals: A principal is a mid-level professional. They usually serve on the boards of portfolio companies and ensure that they operate without major hiccups. Principals are also in charge of identifying investment opportunities for VC firms and negotiating terms for both acquisition and exit. Principals are on a “partner track” that depends on the returns they can generate from the deals they make.  Partners: The higher profile partners primarily identify areas or specific businesses to invest in, approve deals (whether investments or exits), occasionally sit on the board of portfolio companies, and generally represent their VC firms. When Should One Go for Venture Capital Funding? At the stage of expansion- If your next plan is to expand your business, opting for funding through venture capitalists is a good option. Doing so can help you encash their business, financial and legal expertise which is usually required while business expansion. Requirement of strong mentoring- A venture capitalist brings in a lot of expertise, knowledge, and networking along with his capital investment. You can utilize their guidance to build your own network, promote your business with their direction and ultimately make it reach bigger heights. At the time of competition- Once a start-up has gained a substantial reach and is most likely to face competition in the real market, it is the correct time to go for venture capital funding for surviving and giving tough competition to others. Types of Venture Capital VC can be categorised as per the stage in which it is being invested. Generally, it is of the following 6 types – # Type Definition  1 Seed funding As the same suggests, seed funding or seed capital is the capital invested to help entrepreneur(s) conduct initial activities for setting up a company. This can include product research & development, market research, business, business plan creation, etc.   Seed funding may also be provided by the owners themselves or their family members and friends. 2 Start-up capital Start-up capital is often used interchangeably with seed funding. However, there are minor differences.   Usually, business owners avail start-up capital after they have completed the processes that involve seed funding. It can be used to create a product prototype, hire crucial management personnel, etc. 3 First stage, first round or series A First stage is provided to businesses that have a product and want to start commercial manufacturing, sales, and marketing. 4 Expansion funding As the name suggests, expansion capital is the fund required by a company to expand its operations. The funds can be used to tap new markets, create new products, invest in new equipment and technology, or even acquire a new company. 5 Late-stage funding Late-stage funding is offered to businesses that have achieved success in commercial manufacturing and sales. Companies in this stage may have tremendous growth in revenue but not show any profit. 6 Bridge funding Also known as mezzanine financing, bridge funding helps a company to meet its short-term expenses necessary to create an initial public offering (IPO). Features of Venture Capital Some of the features of venture capital are – Not for large-scale industries – VC is particularly offered to small and medium-sized businesses. Invests in high risk/high return businesses – Companies that are eligible for VC are usually those that offer high return

Rajasthan Udyog Mitra Portal is an online portal developed by the State Government of Rajasthan. It is designed to facilitate the online MSME registration of new entrepreneurs. The new Micro, Small, and Medium Enterprises can avail of the benefits of exemptions by applying through the Rajasthan Udyog Mitra portal. MSMEs or Micro, Small, and Medium Enterprises play a significant role in the growth and development of the Indian economy. The MSME sector has emerged as the backbone of the Indian economy, providing employment opportunities to a significant portion of the population. The Government of India and various state governments have launched several schemes and initiatives to promote and support the growth of MSMEs. One such initiative is the MSME registration process, which provides various benefits to MSMEs Meaning of Micro, Small, and Medium Enterprises (MSME) MSME is a sector that is primarily focused on micro, small, and medium-sized enterprises. In India, MSMEs are defined under the Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006. The Act has classified MSMEs into two categories: manufacturing and service enterprises. Manufacturing enterprises are engaged in the production or manufacture of goods, while service enterprises are engaged in providing or rendering services. Micro, Small, and Medium Enterprises (MSMEs) are a crucial component of the Indian economy. They are essential for generating employment, increasing exports, and promoting economic growth. MSME Registration in Rajasthan The MSME registration process in Rajasthan is straightforward and can be done online through the Udyam Registration portal. The Udyam Registration portal is a government initiative that provides a single-window registration facility for MSMEs. The registration process is free of cost and does not involve any paperwork. Also, the Rajasthan government recognizes the importance of MSMEs and has implemented several initiatives to support their growth. MSME Classification he MSMED Act, 2006, classifies MSMEs based on the investment in plant and machinery or equipment for manufacturing enterprises and investment in equipment for service enterprises. The classification is as follows: Micro-Enterprises: Those with an investment of up to Rs. 1 crore in plant and machinery or equipment for manufacturing enterprises and investment of up to Rs. 10 lakhs in equipment for service enterprises. Small Enterprises: Those with an investment of up to Rs. 10 crores in plant and machinery or equipment for manufacturing enterprises and investment of up to Rs. 2 crores in equipment for service enterprises. Medium Enterprises: Those with an investment of up to Rs. 50 crores in plant and machinery or equipment for manufacturing enterprises and investment of up to Rs. 5 crores in equipment for service enterprises. Benefits of MSME registration in Rajasthan Access to Government Schemes: MSMEs registered in Rajasthan can avail various government schemes and incentives provided by the state and central government. These schemes aim to encourage the growth and development of MSMEs in the state. Financial Assistance: MSMEs registered in Rajasthan can easily avail financial assistance from banks and other financial institutions. This is because banks and financial institutions consider MSME registration as a sign of credibility and reliability. Protection from Delayed Payments: MSMEs registered in Rajasthan are protected under the Micro, Small and Medium Enterprises Development Act, 2006, which ensures timely payment of dues from buyers. Marketing and Promotional Activities: The Rajasthan government organizes various marketing and promotional activities for MSMEs registered in the state. This helps the businesses to expand their reach and attract more customers. Priority in Government Tenders: MSMEs registered in Rajasthan are given priority in government tenders. This gives them an edge over their competitors and helps them to grow their business. Documents Required for MSME Registration in Rajasthan The following documents are required for MSME registration in Rajasthan: Aadhaar card of the proprietor/partners/directors PAN card of the enterprise Bank account details of the enterprise GST registration certificate (if applicable) Business address proof (ownership or rental agreement) Procedure for MSME Registration in Rajasthan Step 1: Visit the Official Portal: The first step in the MSME registration process is to visit the official portal of the Ministry of MSMEs  Step 2: Fill in the Form: After clicking on the “Online Registration” tab, a new page will open where you need to fill in the registration form. The form requires basic information such as your name, Aadhaar number, PAN number, email ID, and mobile number. Step 3: Provide Business Details: In the next step, you need to provide details related to your business. The information required includes the name of the enterprise, type of organization, address, and date of commencement of operations. Step 4: Upload Documents: After filling in the required details, you need to upload the necessary documents. The documents required for MSME registration in Rajasthan are as follows: Aadhaar Card PAN Card Business Address Proof Bank Account Details Partnership Deed/ MOA/ AOA Step 5: Submit the Application: After uploading the documents, you need to submit the application. Once the application is submitted, an acknowledgement receipt will be generated. Step 6: Verification of Application: The MSME registration authority will verify the application, and after successful verification, the registration certificate will be issued. FAQs What is MSME registration, and why is it important? MSME registration is a government-initiated process that provides recognition to micro, small, and medium enterprises. It is important because it enables these businesses to avail various benefits and incentives offered by the government, such as subsidies, easier access to credit, and preferential treatment in government procurement. Who is eligible for MSME registration in Rajasthan? Any business entity engaged in manufacturing or service activities and meeting the defined investment and turnover criteria for micro, small, or medium enterprises is eligible for MSME registration in Rajasthan. What are the investment and turnover criteria for MSME classification in Rajasthan? The investment and turnover criteria vary for micro, small, and medium enterprises. In Rajasthan, these criteria are generally defined based on the investment in plant and machinery or equipment for manufacturing enterprises and on investment in equipment for service enterprises. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST

A trademark is a sign capable of distinguishing the goods or services of one enterprise from those of other enterprises. Trademarks are protected by intellectual property rights. What Is a Trademark? The term trademark refers to a recognizable insignia, phrase, word, or symbol that denotes a specific product and legally differentiates it from all other products of its kind. A trademark exclusively identifies a product as belonging to a specific company and recognizes the company’s ownership of the brand. Trademarks are generally considered a form of intellectual property and may or may not be registered. Trademarks not only help distinguish products within the legal and business systems—but just as significantly—with consumers. They are used to identify and protect words and design elements that identify the source, owner, or developer of a product or service. They can be corporate logos, slogans, bands, or the brand name of a product. Similar to a trademark, a service mark identifies and distinguishes the source of a service rather than a product, and the term trademark is often used to refer to both trademarks and service marks. Using a trademark prevents others from using a company or individual’s products or services without their permission. They also prohibit any marks that have a likelihood of confusion with an existing one. This means that a business cannot use a symbol or brand name if it looks or sounds similar, or has a similar meaning to one that’s already on the books—especially if the products or services are related. For instance, a soft drink company can’t legally use a symbol that looks like that of Coca-Cola and it can’t use a name that sounds like Coke. 1. Trademarking a Brand Name- By trademarking your company’s name, you are protecting the brand, its reputation, and your ideas, all of which you undoubtedly invested a great deal of blood, sweat, and tear working on. And while the procedure for trademark registration itself will take time in all areas considered, nothing would be worse than not protecting your brand and potentially be faced with an infringement lawsuit from a larger company.The process of brand trademark registration in India is now possible and convenient through the trademark registration portal (IP India Portal) and you can trademark any one of the below things or even a combination of the following: – Letter     – Word     – Number     – Phrase     – Graphics     – Logo     – Sound Mark     – Smell or a mix of colors 2. Trademark Registry- The trademark registry was established in 1940 then came the Trademark Act which was passed in 1999. Currently, the trademark registry works as the operation or functional body of the Act. As a functioning body, the trademark registry implements all the rules and regulation of the trademark law in India. The Head Office of the trademark registry is in Mumbai, and it has branch offices in Delhi, Ahmedabad, Chennai and Kolkata. A trademark is registered under the Trademark Act, 1999 and then entered into the Trademark Registry. In this process, the registry will check whether the registering mark meets all the conditions of the Act before registering it. 3. Who Can Apply For a Trademark?The trademark owner can apply for trademark registration. In the Trademark Registration form, the person whose name is mentioned as the applicant will be declared as the owner of the trademark once the trademark is successfully registered. Any individual, a company and an LLP can be an applicant and may file the application for the registration of the particular trademark. 4. How to Register a Trademark?- Registration of a trademark is done by the Registrar Office of Trade Marks. When you plan on registering a trademark there are a few steps involved. Choosing a trademark:Remember to choose a unique and distinctive mark which will represent your company. The other important point is identifying which class you belong to. Currently, there are 45 classes of goods and services under which the trademark can be registered. Classes 1-34 are for goods and classes 35-45 are for service.  Mark search: Once you have chosen your mark it is advisable to conduct a trademark search to check whether your chosen mark is similar to an already registered mark. You can either do this yourself by going to the online website of the Controller General of Patents, Designs and Trademarks. On the website, you can find an option to do a public search. Once you click on this option you need to choose your class and search the online database.     The other option is to get legal services, although you will have to pay for it is the safer option. Overall legal services will cost lesser in case your trademark is objected against. Not only will they do the search, they will also help you with the whole process. Filing application: You can file one application for multiple classes or series trademark, or collective trademark. For this, you have to fill in form TM-A. This form allows you to register the trademark beyond one class. Filing of this form has two separate cost brackets: Rupees 9,000 or Rupees 10,000- If you are not a start-up, small enterprise or an individual you will fall under this bracket. You have to pay rupees 9,000 for e-filing of the from or Rupees 10,000 if you file the form in person with the Office of Trade Marks. Rupees 4,500 or Rupees 5,000- If you are an individual, small enterprise or a start-up then you fall under this bracket. Rupees 4,500 is the charge for e-filing of the form or Rupees 5,000 if you file the form physically. While filling the form make sure not to make any mistakes, this may lead to delays or even rejection of the application. You have to fill in all the details and also add a picture of the trademark with the dimensions of 9 by 5 cms. You may be required to attach five duplicates of the same. The full file must be then submitted with two duplicates when filing. You can file it online or by yourself or by an agent, whichever is convenient for you. Confirmation of filing will be done

When a business pivots, it changes some aspects of its core products or services. Businesses may pivot to better meet customer demand, shift their target audience to boost sales, or a combination of both. What is a Pivot? A pivot is a significant price level known in advance which traders view as important and may make trading decisions around that level. As a technical indicator, a pivot price is similar to a resistance or support level. If the pivot level is exceeded, the price is expected to continue in that direction. Or the price could reverse at or near that level. What Does a Pivot Tell You There are pivots and pivot points. These terms may mean different things to different people. A pivot means an important price level to a trader, like an inflection point, where they expect price to either continue in the current direction or reverse course. Some traders view prior high points or low points in the price as a pivot. A trader may view the 52-week high as a pivot point. If the moves above it, the trader anticipates the price will continue higher. But if the price falls back below the prior 52-week high they may exit their position, for example. A pivot can occur on any timeframe. A pivot can be area that a trader view as important, such as weekly high or low, daily high or low, a swing high/low, or a technical level. Pivot points are calculated levels. Floor traders originally used a pivot point to establish important price levels, and those are now used by many traders. After analyzing data from the stock’s historical price, a pivot point is used as a guide for how the price may move. Other calculations provide support and resistance levels around the pivot point. Pivot points can be calculated based on various time frames, therefore providing information to day trading, swing traders, and investors,When the price is above a pivot point it is considered bulllish, when the price is belwo the pivot point it is considered bearish. Levels above the pivot point are calculated and called R1 and R2, with the R standing for Resistance. Levels below the pivot point are calculated and called S1 and S2, with S standing for Support. How to Calculate a Pivot A pivot doesn’t require a calculation. It just an important price area for the trader to watch.   Pivot points do have a calculation. The calculations for today’s pivot levels are based on the prior day’s high, low and closing prices.   ​  To calculate a weekly pivot, the high, low and close would be used based on the prior week. To calculate a monthly pivot, the high, low and close would be used for the prior month. The Difference Between a Pivot and Fibonacci Retracements Both of these levels are typically drawn on the chart. Fibonacci retracements are calculated levels based on the length of the price swing. Therefore, they will typically provide levels to watch for compared to pivots or pivot points. Fibonacci retracements show how far the price may pull back Limitations of Using Pivots Whether using a pivot or pivot points, there will always be other levels that are also important. Focusing only the levels may mean other opportunities are missed. Pivots and pivot points are best used in conjunction with other forms of analysis Pivots and pivot points, while important, may get whipsawed leading to losing traders or confusion. For example, the price may move back and forth across the pivot point, moving a trader from bullish to bearish and back again. After moving through a pivot point the price may not proceed to the next expected level, such as R1 or S1. FAQs What does it mean to “pivot” in business? In business, “pivot” refers to a significant change in a company’s strategy, product, or direction in response to market feedback, changing trends, or unexpected challenges. It involves making strategic adjustments to better align with customer needs or market conditions. What are some common reasons for a business to pivot? Common reasons for a business to pivot include lack of product-market fit, declining sales, changes in consumer behavior or preferences, emerging competition, technological advancements, regulatory changes, or shifts in the economic landscape. What are the different types of pivots that businesses may undertake? Businesses may undertake various types of pivots, including product pivots (changing the features, functionality, or target market of a product), market pivots (targeting a different customer segment or industry), technology pivots (leveraging new technologies or platforms), and business model pivots (changing the revenue model or distribution channels). 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