VENTURE CAPITAL EXAMPLES: EXAMPLE 1: Servals Automation Private Limited (SAPL) is a rural technology company based in Chennai.

Servals sell two products, an efficient kerosene burner and a rain gun. The kerosene burner reduces kerosene consumption by 30% and is safer and healthier than current burners on the market. The rain gun is a micro- Irrigation device that provides for enormous savings in water and also improves yield for farmers. Both innovations were created by rural innovators and specifically tailored to the needs of the rural community. AAVISHKAARS ROLE: Servals was Aavishkaars first investment. The initial investment was provided to strengthen its assembling, marketing and distribution channels and to promote their products. Mid-way through their investment horizon, Aavishkaar made an additional investment. As part of this investment, Aavishkaar took a 49% stake in the company following the due diligence period, leaving the promoters with the remaining 51%. EXAMPLE 2: SKYPE VOIP service provider. Revenues based on advertising No cost for PC to PC calls Initial Venture capital investors: in year 2002, Draper Investment Company $250000 initial investment Sold to EBay in 2005 for $2.1B Initial VCs make 1300X return on their initial investment.

Short Notes:
Non - fund Income of Banks:
All Incomes arising due to services and their related fees are known as non fund or fees based income. E.g.: Annual fees charged for credit card is a non fund based income. The non-fund based income comprises of revenues from both financial commitment and services rendered. Financial commitment includes guarantees, letters of credit and bankers acceptances etc. The fees charged may vary from bank to bank and is dependant on the relationship of the bank with the client and the size of the transaction. On the other hand, the revenues from services rendered include fees from funds transfer and enabling services like

ATM, internet banking etc. The revenues from fund transfer come from corporate services such as cash management, foreign exchange remittances and from retail services including drafts, pay orders etc. The cash management business contributes to banks' fee based revenue stream in a major way. The cash management business comprises four types of services including collection of outstation Cheques, disbursement of outstation Cheques, payment of dividends, interest, and refunds and e-business. The tariff differs depending on the volumes, the banks' profitability and the banks' relationship with the client. As a proportion of the total fee based income, cash management is the most important component. The other streams of income like auto loans, personal loans, loans against shares among others are residual.