Xantham gum

Xanthan gum is a polysaccharide, derived from the bacterial coat of Xanthomonas campestris, used as a food additive and rheologymodifier,[2] commonly used as a food thickening agent (in salad dressings, for example) and a stabilizer (in cosmetic products, for example, to prevent ingredients from separating). It is produced by the fermentation of glucose, sucrose, or lactose by the Xanthomonas campestrisbacterium. After a fermentation period, the polysaccharide is precipitated from a growth medium with isopropyl alcohol, dried, and ground into a fine powder. Later, it is added to a liquid medium to form the gum.[3]

It was discovered by an extensive research effort by Allene Rosalind Jeanes and her research team at the United States Department of Agriculture anthan gum derives its name from the strain of bacteria used during the fermentation process, Xanthomonas campestris
One of the most remarkable properties of xanthan gum is its ability to produce a large increase in the viscosity of a liquid by adding a very small quantity of gum, on the order of one percent. In most foods, it is used at 0.5%, and can be used in lower concentrations. The viscosity of xanthan gum solutions decreases with higher shear rates; this is called shear thinning or pseudoplasticity. This means that a product subjected to shear, whether from mixing, shaking or even chewing, will thin out, but once the shear forces are removed, the food will thicken back up. A practical use would be in salad dressing: the xanthan gum makes it thick enough at rest in the bottle to keep the mixture fairly homogeneous, but the shear forces generated by shaking and pouring thins it, so it can be easily poured. When it exits the bottle, the shear forces are removed and it thickens back up, so it clings to the salad. Unlike other gums, it is very stable under a wide range of temperatures and pH.
In foods, xanthan gum is most often found in salad dressings and sauces. It helps to prevent oil separation by stabilizing the emulsion, although it is not an emulsifier. Xanthan gum also helps suspend solid particles, such as spices. Also used in frozen foods and beverages, xanthan gum helps create the pleasant texture in many ice creams, along with guar gum and locust bean gum. Toothpaste often contains xanthan gum, where it serves as a binder to keep the product uniform. Xanthan gum (when sometimes not made from wheat—see Allergies for gluten-free allergy information) is also used in gluten-free baking. Since the gluten found in wheat must be omitted, xanthan gum is used to give the dough or batter a "stickiness" that would otherwise be achieved with the gluten. Xanthan gum also helps thicken commercial egg substitutes made from egg whites, to replace the fat and emulsifiers found in yolks. It is also a preferred method of thickening liquids for those with swallowing disorders, since it does not change the color or flavor of foods or beverages at typical use levels.
In the oil industry, xanthan gum is used in large quantities, usually to thicken drilling mud. These fluids serve to carry the solids cut by the drilling bit back to the surface. Xanthan gum provides great "low end" rheology. When the circulation stops, the solids still remain suspended in the drilling fluid. The widespread use of horizontal drilling and the demand for good control of drilled solids has led to its expanded use. It has also been added to concrete poured underwater, to increase its viscosity and prevent washout.
In cosmetics, xanthan gum is used to prepare water gels, usually in conjunction with bentonite clays. It is also used in oil-in-water emulsions to help stabilize the oil droplets against coalescence. It has some skin hydrating properties. Xanthan gum is a common ingredient in fake blood recipes, and in gunge/slime.

an allergic response may be triggered in people sensitive to the growth medium, usually corn, soy, or wheat ome people react to much smaller amounts of xanthan gum, with symptoms of intestinal bloating and diarrhea

Fecal Microbiota Transplantation (FMT) is a new scientifically accepted terminology to describe the process of transplantation of fecal flora[1][2] as a treatment for patients suffering from Clostridium difficile infection (CDI)), which can range from diarrhea through to pseudomembranous colitis. Previous terms for the procedure include fecal bacteriotherapy, fecal transfusion, fecal transplant, stool transplant, fecal enema and human probiotic infusion (HPI). FMT involves restoration of the colonic flora by introducing healthy bacterial flora through infusion of stool obtained from a healthy human donor. It can also be used in other conditions apart from CDI including colitis[3], constipation[3], Irritable Bowel Syndrome[3] and some neurological conditions. Contents [hide] * 1 Description of procedure * 2 Theoretical basis * 3 Benefits * 4 History * 5 See also * 6 External links * 7 References |
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[edit]Description of procedure
The procedure involves single to multiple infusions (e.g by enema) of bacterial fecal flora originating from a healthy donor. Most patients with CDI recover clinically and have the CDI eradicated after just one treatment[1][4][5]. The procedure can be carried out via enema[6], through the colonoscope[7], or through a nasogastric or nasoduodenal tube[8]. Although a close relative is often the easiest donor to obtain and have tested, there is no scientific basis for this as genetic similarities or differences do not appear to play a role in the procedures' success[1]. Indeed in some situations a close relative may already be an asymptomatic carrier of C.difficile. Donors must be tested for a wide array of bacterial and parasitic infections[1]. The fecal transplant material is then prepared and administered in a clinic or hospital environment to ensure that necessary precautions are followed[9]. The fecal microbiota infusions can be administered via various routes depending on suitability and ease, although enema infusion is perhaps the simplest. There does not appear to be any significant methodological difference in terms of efficacy between the various routes. Repeat stool testing should be performed on patients to confirm eradication of CDI. In over 370 published reports, there has not been one single reported incidence of infection transmission from the procedure[10].
A modified form of fecal bacteriotherapy (Autologous Restoration of Gastrointestinal Flora - ARGF) that is easier to administer is being developed[11]. An autologous faecal sample, provided by the patient before medical treatment, is stored in a refrigerator. Should the patient subsequently develop C. difficile, the sample is extracted with saline and filtered. The filtrate is freeze-dried and the resulting solid enclosed in enteric-coated capsules. Administration of the capsules will restore the patient's own colonic flora and combat C. difficile.
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[edit]Theoretical basis
The hypothesis behind fecal bacteriotherapy rests on the concept of bacterial interference, i.e using harmless bacteria to displace pathogenic organisms. This approach to combating bacterial infections is not new[12] and has long been used in animals, for example, to prevent salmonellosis in chickens[13]. In the case of CDI, the C.difficile pathogen is identifiable. However in the case ofpseudomembranous colitis, whilst C. difficile is the most common cause, there are other C. difficile-negative pseudomembranous colitis cases. In patients with relapsing CDI, the mechanism of action may be the restoration of missing components of the flora including Bacteroidetes and Firmicutes[14][15][16]. The introduction of normal flora results in durable implantation of these components[17]. Another theoretical mechanism entails the production of antimicrobial agents (Bacteriocins) by the introduced colonic flora to eradicate C.difficile. This may be a similar mechanism to that ofVancomycin which originated from soil bacteria, and bacillus thuringiensis which has been proven to produce bacteriocins specific for C. difficile[18]. The potential combination of replacement of missing components and production of antimicrobial products manufactured by the incoming flora are likely to be the mechanisms curing CDI. In the case of ulcerative colitis, no single 'culprit' pathogen has been identified in humans. However since C.difficile colitis responds so well to FMT, it is conceivable that ulcerative colitis may respond in a similar fashion, where the offending infective agent/s are still unknown. It is also possible that an infection persists but cannot be identified as was the case with pseudomembranous colitis when it was first treated in 1958[6].
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[edit]Benefits
Benefits of FMT include the restoration of the colonic microbiota to its natural state by replacing missing Bacteroidetes and Firmicutes species, eradication of C. difficile, and resolution of clinical symptoms such as diarrhea, cramping and urgency. Antibiotic resistance in CDI is an uncommon event- rather CDI relapses due to the presence of C. difficile spores[19]. Although once considered to be 'last resort therapy' by some medical professionals due to its unusual nature and 'invasiveness' compared with antibiotics; perceived potential risk of infection transmission; and lack of Medicare coverage for donor stool, the recent position statement by specialists in infectious diseases and other societies[1] is moving away from FMT as a last-resort treatment and toward acceptance of FMT as standard therapy for relapsing CDI and also Medicare coverage in the United States. Indeed the Editor-In-Chief of the Journal of Clinical Gastroenterology, Dr Martin Floch, announced in a recent editorial that "FMT using donor stool has arrived as a successful therapy"[20]. Given that antibiotics are the original cause of CDI through their damage of the normal human flora and removal of protective Bacteroidetes and Firmicutes species, further antibiotic therapy should be avoided. It has now been recommended that endoscopic Fecal Microbiota Transplantation be elevated to first-line treatment for patients with clinical deterioration and severe relapsing C. difficile infection[5]. The earlier the infusion is initiated, the less likely the patient's condition will deteriorate, thereby preventing the higher mortality rate associated with severely affected patients. Fecal Microbiota Transplantation is being increasingly used in clinical practice and since complications of FMT are so rare its use is likely to increase exponentially in the coming years.
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[edit]History
The first description of FMT was published in 1958 outlining the successful treatment of four patients with pseudomembranous colitis before C. difficile was the known cause[6]. Since that time sporadic cases have appeared in the literature. However FMT has been developed in more recent years by Dr Thomas J Borody and his team in Sydney, Australia, primarily as an alternative treatment for CDI, including pseudomembranous colitis. Given that CDI develops following damage to the colonic flora with antibiotics, FMT appears the most logical choice for CDI cure.
At the Centre for Digestive Diseases in Sydney, FMT is now being extended beyond CDI, to other conditions including Ulcerative Colitis[21][22], Autoimmune disorders[23], Neurological conditions[24],Obesity and Metabolic Syndrome/Diabetes[10]. The future of FMT is likely to move away from crude, homogenised human flora and progress towards the use of highly refined stool, comprising bacteria only and mixed with a cryoprotectant to be frozen and stored for usage. Ultimately such an extract can be dried, powdered and encapsulated to be administered as an enteric coated medication for use in a number of flora-related conditions.

Kinesiology, also known as human kinetics is the scientific study of human movement. Kinesiology addresses physiological, mechanical, and psychological mechanisms. Applications of kinesiology to human health include: biomechanics and orthopedics, rehabilitation, such as physical and occupational therapy, as well as sport and exercise.[1] Individuals who have earned degrees in kinesiology can work in research, the fitness industry, clinical settings, and in industrial environments.[2] Studies of human and animal motion include measures from motion tracking systems, electrophysiology of muscle and brain activity, various methods for monitoring physiological function, and other behavioral and cognitive research techniques .[3][4]
Kinesiology as described above should not be confused with applied kinesiology, a controversial[5][6][7] chiropractic diagnostic method.[8]
The word comes from the Greek words kinesis (movement) and kinein (to move). Contents [hide] * 1 Basics * 2 Scope of practice * 3 Licensing and regulation * 3.1 Canada * 3.2 United States * 4 Health services * 5 See also * 6 References * 7 External links |
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[edit]Basics
Kinesiology is the study of human and animal movement, performance, and function by applying the sciences of biomechanics, anatomy, physiology, psychology, and neuroscience. Applications of kinesiology in human health include the rehabilitation professions, such as physical and occupational therapy, as well as applications in the sport and exercise industries. Kinesiology is a field of scientific study, and does not prepare individuals for clinical practice. A bachelor's degree in kinesiology can provide strong preparation for graduate study in biomedical research, as well as in professional programs, such as allied health and medicine.
Whereas the term "kinesiologist" is neither a licensed nor professional designation in the United States nor most countries (with the exception of Canada), individuals with training in this area can provide consulting services, conduct research and develop policies related to rehabilitation, human motor performance, ergonomics, and occupational health and safety. In North America, kinesiologists may study to earn a Bachelor of Science, Master of Science, or Doctorate of Philosophy degree in Kinesiology or a Bachelor of Kinesiology degree, while in Australia or New Zealand, they are often conferred an Applied Science (Human Movement) degree (or higher). Many doctoral level faculty in North American kinesiology programs received their doctoral training in related disciplines, such as neuroscience, mechanical engineering, psychology, and physiology.
The world's first kinesiology department was launched in 1967 at the University of Waterloo, Canada.[9]
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[edit]Scope of practice
In most countries, kinesiology refers to an area of study and is not associated with a professional designation.[citation needed] In Canada, kinesiology is a professional designation associated with the assessment of movement, performance, and function; and the rehabilitation, prevention, and management of disorders to maintain, rehabilitate, and enhance movement, performance, and function in the areas of sport, recreation, work, exercise, and general activities of daily living.[10]
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[edit]Licensing and regulation
[edit]Canada
In Canada, Kinesiology has been designated a regulated health profession [11] Kinesiology was made a regulated health profession in the province of Ontario in the summer of 2007 [12] and similar proposals have been made for other Canadian provinces.
[edit]United States
In the United States, the American Kinesiology Association is the national kinesiology organization of university departments providing professional information about kinesiology degree programs.[13]
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[edit]Health services * Health Promotion: Kinesiologists working in the health promotion industry focus on working with individuals to enhance the health, fitness, and well-being of the individual. Kinesiologists can be found working in fitness facilities, personal training/corporate wellness facilities, and industry. * Clinical/Rehabilitation: Kinesiologists work with individuals with disabling conditions to assist in regaining their optimal physical function. They work with individuals in their home, fitness facilities, rehabilitation clinics, and at the worksite. They also work alongside physiotherapists. * Ergonomics: Kinesiologists work in industry to assess suitability of design of workstations and provide suggestions for modifications and assistive devices. * Health and Safety: Kinesiologists are involved in consulting with industry to identify hazards and provide recommendations and solutions to optimize the health and safety of workers. * Disability Management/Case Coordination: Kinesiologists recommend and provide a plan of action to return an injured individual to their optimal function in all aspects of life. * Management/Research/Administration/Health and Safety: Kinesiologists frequently fulfill roles in all above areas, perform research, and manage businesses.[14]
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A Chromebook is a personal computer running Google Chrome OS. The devices comprise a distinct class of personal computer falling between a pure cloud client and traditional laptop.[1][2]
The first devices for sale, by Acer Inc. and Samsung, were announced at the Google I/O conference in May 2011 and began shipping on June 15, 2011.[3] Contents [hide] * 1 Design * 2 Models * 3 Sales and marketing * 4 Reception * 5 Trademark dispute * 6 See also * 7 References * 8 External links * 9 References |
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[edit]Design
Chromebooks are shipped with the Google Chrome OS operating system, which uses the Linux kernel, and the Google Chrome web browser with an integrated media player.[4][5] With limited offline capability and a boot time, according to Google, of eight seconds, Chromebooks are primarily designed to be used while connected to the Internet.[6] Instead of installing traditional applications such as word processing and instant messaging, users add web apps from the Chrome Web Store.[7] Google claims that a multi-layer security architecture eliminates the need for anti-virus software.[3]
Support for many USB devices such as cameras, mice, external keyboards and flash drives is included, utilizing a feature similar to plug-and-play on other operating systems. Like the prototype Cr-48, Chromebooks have a specialized keyboard complete with buttons for opening and controlling multiple browser windows, as well as a Web search button which replaces the caps lock key.[8]
An analysis of the Samsung Series 5 components by iFixit in June 2011 estimated that the unit cost about US$322 in materials and US$12 in labor costs. With a retail price of US$499.99 and shipping, marketing, research and development and retail margins to account for this indicates that the profit margins on the Chromebooks are quite thin, requiring a large production run to make a profit.[9]
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[edit]Models
Google developed the first Chromebook, the Cr-48, as a prototype machine. The first commercial Chromebooks, functionally similar to the Cr-48, are produced by Samsung and Acer.[6] The machines are available in both Wi-Fi and 3G versions from both manufacturers. The Samsung Chromebook has a 12.1 inch 1280×800 screen.[10] The Acer Chromebook has an 11.6-inch (290 mm) screen.[11]Both versions include an HD webcam and two USB 2.0 ports. The Samsung version has Mini-VGA out[10] while the Acer version has the HDMI output.[11] Chromebook models | Manufacturer | Model | Available | Processor | RAM | Hard drive | Screen size | Weight | Base price | Origin | References | Google | Cr-48 (prototype) | December 2010 | 1.66 GHz single-core Intel Atom N455 | 2 GB | 16 GB SSD | 12.1 in (30.7 cm) | 3.8 lb (1.7 kg) | Not for retail sale | | [12] [13] [14] | Samsung | Series 5 | June 2011 | 1.66 GHz dual-core Intel Atom N570 | 2 GB | 16 GB SSD | 12.1 in (30.7 cm) | 3.3 lb (1.5 kg) | US$349.99 Wi-Fi
US$449.99 3G[15] | China | [16] [17] | Acer Inc. | AC700 | July 2011 | 1.66 GHz dual-core Intel Atom N570 | 2 GB | 16 GB SSD | 11.6 in (29.5 cm) | 3.19 lb (1.4 kg) | US$299.99 Wi-Fi
US$399.99 3G[18] | China | [11] [19] [20] |
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[edit]Sales and marketing

The Acer Chromebook
Since late 2010, Google's Chromebooks initiative has been headed by Rajen Sheth, best known as the “father of Google Apps”. Sheth's background includes corporate marketing at VMWare, where he worked on a data center product. His strategy for marketing Chromebooks has centered on the total cost of ownership, which, he said, can be "dramatically" reduced by lower maintenance, management and security costs, even if hardware costs remain unchanged.[21]
Chromebooks began selling through online channels, including Amazon and Best Buy in the U.S., and in some European countries starting June 15, 2011. The first machines sold for between $349 and $499, depending on model and whether 3G was included.[22] Google also offered a monthly payment scheme for business and education customers at $28 and $20 per user, per month, respectively for a three-year contract, including replacements and upgrades. Verizon offered 100 megabytes of wireless data per month, with an additional gigabyte at $20 per month.[6]
Google's early marketing efforts relied primarily on hands-on experience: giving away Samsung machines to 10 Cr-48 pilot program participants along with the title Chromebook Guru and loaning Chromebooks to passengers on some Virgin America flights.[23][24][25] At the end of September 2011, Google launched the Chrome Zone, a "store within a store", inside the Currys and PC World superstore in London.[26] The store had a Google-style look and feel with splashes of color all around the retail store front.[27] Google said it was planning to open more Chrome Zones in the UK over the next few months.[28]
On 21 November, 2011, Google announced[29] price reductions on all Chromebooks. Since then, the Wi-Fi-only Samsung Series 5 was reduced to $349, the 3G Samsung Series 5 was reduced to $449, and the Acer AC700 was reduced to $299.
By January 2012, commercial sales for Chromebooks were flat, with the exception of the education market. Google had placed nearly 27,000 Chromebooks in schools across 41 states, including "one-on-one" programs, which allocate a computer for every student, in South Carolina, Illinois, and Iowa.[30]
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[edit]Reception

Google's Sundar Pichai speaking about the Chromebook at its launch at Google I/O, May 2011.
Some analysts viewed Google's web-centric operating system packaged with hardware as a direct attack on the market dominance ofMicrosoft.[1][2][31] Some observers argued that the success of the platform depends on the quality of available Web applications, access to Windows applications on virtual desktops[32] which is available from third party products[33], and the ability of some applications to functionoffline.[34][35]
Reviewing the Samsung Series 5 specifications, Scott Stein of CNET was unimpressed with the "Atom-based 12-incher with only 16 GB of onboard storage. Chrome OS might be lighter than Windows XP, but we'd still prefer more media storage space. At this price, you could also get a 11.6-inch (290 mm) Wi-Fi AMD E-350-powered ultraportable running Windows 7."[16] On the other hand, MG Siegler of TechCrunch wrote a largely favorable review, praising the improvements in speed and trackpad sensitivity over the CR-48 prototype, as well as the long battery life and the fact that all models are priced below the iPad.[2]
In June 2011 iFixit dismantled a Samsung Series 5 and concluded that it was essentially an improved Cr-48. They rated it as 6/10 for repairability, predominantly because the case has to be opened to change the battery and because the RAM chip is soldered to the motherboard. iFixit noted that the "mostly-plastic construction" felt "a little cheap". On the plus side they stated that the screen was easy to remove and most of the components, including the solid state drive would be easy to replace. iFixit's Kyle Wiens concluded: "Our analysis revealed that the Series 5 is a well-polished version of the rather imperfect Cr-48 prototype Chromebook. The Series 5 fixes the major shortfalls of the Cr-48 and adds the polish necessary to strike lust into the heart of a broad consumer base: sleek looks, 8+ hours of battery life, and optimized performance."[36]
In an article published on ZDNet in June 2011, entitled Five Chromebook concerns for businesses, Steven J. Vaughan-Nichols faulted the devices for lack of virtual private network capability, not supporting some Wi-Fi security methods, in particular Wi-Fi Protected Access II (WPA2) Enterprise with Extensible Authentication Protocol-Transport Layer Security (EAP-TLS) or Cisco’s Lightweight Extensible Authentication Protocol (LEAP). He also noted that its file manager does not work, the need to use the undocumented crosh shell to accomplish basic tasks such as setting up a secure shell (SSH) network connection as well as serious deficiencies in documentation.[37]
In one of the first customer reviews, the City of Orlando reported on their initial testing of 600 Chromebooks as part of a broader study related to accessing virtual desktops. Early indications show potential value in reducing IT support costs. End users have indicated that the Chromebook is easy to travel with and starts up quickly. One stated that "If I just need to stay connected for emergencies, I take my Chrome," but when traveling for business she would still take her laptop. Orlando does plan to continue to use the Chromebooks.[38]
Shortly after the Samsung Series 5 Chromebook was released to the public in July 2011, the review site Chromebook Ratings praised the Series 5 and its 8-second boot-up time, claiming that "You can literally go from a cold machine to searching the internet in about 10 seconds. It’s one thing to see it described, but it’s another to experience it first-hand."[39] In the same review, they lauded the Series 5 for its "exceptionally long battery life" that exceeded the battery life of the Acer AC700 Chromebook.
Reviewing the Samsung Series 5 Chromebook in July 2011, Benjamin Humphrey of OMG! Ubuntu! concluded: "Overall, the Samsung Series 5 is a lovely piece of hardware and a perfect start to the Chromebook lineup...However, the Series 5 as an overall product is let down by comparatively feature-poor software. While you shouldn’t expect a Chromebook to be a full replacement for a complete operating system, it should be able to handle basic things such as copy and paste in the File Manager and playback of common local formats. Thankfully, Chrome OS has a very quick release cycle of 6 weeks, and many of my gripes have been addressed and are targeted to the next couple of updates, so it can only get better...unless you’re a keen early adopter, I’d suggest holding out until later in the year before purchasing a Chromebook to let the software mature a bit more. If you’re simply after a tablet with a keyboard however, the Series 5 might just be the perfect purchase."[40]
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[edit]Trademark dispute
In June 2010, ISYS Technologies, based in Salt Lake City, sued Google in a Utah district court, claiming rights to the name "Chromium", and, by default, Chromebook and Chromebox. The suit sought to stop Google and its hardware and marketing partners from selling Chromebooks.[41] The suit was later dismissed, and, as part of an undisclosed settlement, ISYS abandoned its trademark efforts.[42]
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Educational institutions in the US are “tremendously interested” in the Foreign Education Providers (Regulation) Bill, which is waiting to be introduced in Parliament, said Suresh Kumar, the assistant secretary of commerce and director general of the US and foreign commercial service.
Talking to Express during a media interaction, organised by Chennai US Consulate on Wednesday, he however, said there was a need for further clarity on many aspects of the Bill to attract the interests of universities. “Union HRD Minister has informed us that the Bill is likely to be passed by Parliament within this year and the educational institutions in the US are looking forward to it,” he said.
However, Kumar stressed on the need for clarity on many issues within the Bill, which might be crucial in attracting foreign universities to open facilities in India.
“There needs to be enough clarity on fee structure, profitability of running institutions and on curriculum development which we hope will emerge by the time the Bill is passed by Parliament.”
The proposed higher education Bill would pave way for foreign universities to legally set up educational institutions in India instead of relying on unofficial, unilateral partnerships with Indian universities. But the Bill in its present form prevents universities from repatriating profits back to home countries. The Bill also mandates the government to regulate tuition fees to keep them affordable.
Availability of higher educational opportunities is going to be the major factor that constrains India’s growth, said Kumar, apart from other issues like energy security and infrastructure. Quoting governmental statistics he said, “At present there are 220 million school going children in India of which only 28 million go for higher education.” The Centre targets to improve the numbers by 15 per cent by 2015 and 30 per cent by 2020, which means an additional 80 million students will be encouraged to take up higher education.
“The US is willing to work with India in this endeavour and can help in building educational infrastructure, imparting training and skills. The Tamil Nady government authorities have already flagged issues like requirement of lab equipment. There can also be collaborations in teacher training to help produce quality teachers in India who can meet the demand for education. Our focus primarily will not be only on the top one per cent but on various sections of society in need of education as a right,” Kumar said
The proposed Foreign Educational Institutions (Regulation of Entry and Operations) Bill, 2010 seeks to permit foreign players into India's higher education system. There is no dearth of applications for opening private higher education institutions. In addition to the existing 7,000-plus engineering colleges through which 8,00,000 students graduate every year, 2009-10 saw more than 200 applications considered favourably for establishing engineering colleges.
In the U.S., particularly, the financial tsunami has forced the Department of Education to slash funds at all levels — school, community colleges and universities. Budgets are being cut from many state-supported universities as they are facing huge shortfalls. With rising tuition fees affecting local enrolments, foreign universities are forced to look at alternative geographical markets to increase enrolment.
The Ministry of Human Resource Development estimates that permitting foreign universities will reduce the foreign exchange outflow by 75 per cent. This is questionable. According to an ASSOCHAM report, the annual outflow of foreign exchange due to Indian students going abroad is $ 10 billion.
Despite the availability of quality subsidised engineering and management education in India (on average, an engineering or management student in a reputed institution pays $120 a month as fees compared to $1,500-5,000 in an equivalent institution the U.S., Canada, Australia, Singapore and Britain), about five lakh students go abroad every year.
One of the main reasons is the high quality of the post-graduate and doctoral degree programmes offered in institutions abroad, delivered through innovative methodologies and abundant flexibility. In addition, the students crave for foreign exposure which can be a springboard for a global career. Even if foreign universities open up campuses in India, a vast majority of students will still prefer to leave India, and the impact of this on foreign reserves will continue to be felt.
FACULTY CRISIS
A fallout of permitting foreign universities is the likely flight of teachers from the Indian institutions, compounding the existing shortage of qualified faculty. The Indian universities will not be able retain their teachers as with their drastically lower fee structures, they cannot match the pay packets of the foreign universities.
The persisting faculty crisis in Indian higher education presents a bleak picture. On May 5 this year, the Lok Sabha was informed that 34 per cent of the 11,085 teaching positions across 22 universities in India are lying vacant. The paucity of qualified faculty is felt even more in professional and technical institutions. With the engineering students in India increasing every day, institutions are facing a faculty shortage to the extent of 67 per cent all over the country. Even in premier institutes like the IITs, faculty shortage is an issue of serious concern. Foreign universities can only add to this.
In terms of infrastructure, many Indian universities can boast of a world class facility. But the lack of academic and administrative freedom is constraining many from meeting global standards.
Until the AICTE was conferred statutory powers in 1987, only the universities and the State Governments had powers to set up technical educational institutions. During the late 1970s and 1980s, the governments of Karnataka and Maharashtra permitted private trusts and societies to establish educational institutions. In 1984, the Tamil Nadu government followed suit and started permitting self-financing institutions. Andhra Pradesh was the next, joined by all the States and hence imparting higher education no longer became the exclusive duty of the state. The Supreme Court judgment in Unnikrishnan's case also paved the way for collection of the actual expenditure incurred per student in an unaided institution.
There are several regulatory bodies like the UGC, the AICTE and the MCI, stifling the growth of education under the guise of regulating institutions without giving them functional freedom. Freeing institutions from such regimental shackles would be a far wiser option than inviting foreign universities to our shores.
If the MHRD is dead set on permitting foreign universities, it should allow a calibrated entry. At the moment, it seems that foreign universities will target only the huge undergraduate degree market, as introducing postgraduate courses here could endanger the enrolment of Indians on U.S. campuses. The government should hence permit them on condition that they begin with postgraduate/doctoral education for the first 10 years with their own existing faculty. While this will be a litmus test of the true intentions of the foreign universities, the time period will help level the playing field for Indian institutions to take on foreign competition.
FINANCIAL CONTROL
Also, there needs to be a tightening of the Act to ensure that foreign universities plough their surplus back into educating Indians. On the surface of it, Section 5 (3) of the Act appears to do this. It states that no part of the surplus in revenue generated in India by a foreign education provider, after meeting all expenditure in regard to its operations in India, shall be invested for any purpose other than for the growth and development of the educational institutions established by it in India. Even a layman with no accounting knowledge will know that accounting firms have in stock numerous mantras to divert funds, not necessarily by way of profit. The Act must hence prevent the diversion of funds in any form and not just the diversion of surplus.
With a plethora of issues confronting Indian education at all levels, the foreign university Bill is an unprescribed pill.
(The writer is Indian Overseas Bank Chair Professor, School of Management and Dean, Planning and Development, Sastra University, Thanjavur, Tamil Nadu.)

A virtual team (also known as a geographically dispersed team or GDT) is a group of individuals who work across time, space and organizational boundaries with links strengthened by webs ofcommunication technology. Powell, Piccoli and Ives define virtual teams in their literature review article "as groups of geographically, organizationally and/or time dispersed workers brought together by information and telecommunication technologies to accomplish one or more organizational tasks."[1] Ale Ebrahim, N., Ahmed, S. & Taha, Z. in their recent (2009) literature review paper, added two key issues to definition of a virtual team “as small temporary groups of geographically, organizationally and/ or time dispersed knowledge workers who coordinate their work predominantly with electronic information and communication technologies in order to accomplish one or more organization tasks”[2] Members of virtual teams communicate electronically and may never meet face-to-face. Virtual teams are made possible by a proliferation of fiber optic technology that has significantly increased the scope of off-site communication.[3] Virtual teams allow companies to procure the best talent without geographical restrictions.[3] According to Hambley, O’Neil, & Kline (2007), "virtual teams require new ways of working across boundaries through systems, processes, technology, and people,[4] which requires effective leadership...despite the widespread increase in virtual teamwork, there has been relatively little focus on the role of virtual team leaders."
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Types of virtual teams
Below are the most common types of virtual teams.[4] 1. Networked teams 2. Parallel teams 3. Project development teams 4. Work, production or functional teams 5. Service teams 6. Offshore ISD teams

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Advantages of virtual teams
Increased productivity: Virtual teams often see an increase in productivity because more personal flexibility is achieved, commute time is reduced, and work is not limited by the traditional 9-5 work day schedule. In turn, the company never sees an off hour. The team on the other side of the globe simply picks up where the prior team left off. This approach is commonly referred to as “Follow the Sun Approach”. This advantage can translate to a much faster time to market for new products and technology.[citation needed]
Extended market opportunity: This is a major benefit of geographically dispersed teams due to direct access to different market opportunities. With work teams located in different parts of the globe, organizations are able to establish their presence with customers worldwide. This also gives small business owners the ability to compete on a global scale as well without being limited to a particular customer base.[citation needed]
Knowledge transfer: This is one of the most important benefits of a virtual team; utilizing people with different types of knowledge spread out across the globe can be very beneficial to any organization. Online meetings, remote computer access, wireless technology, and conferencing systems offer a way for participants to join a complex discussion from anywhere in the world. This benefit can enable most companies to compete on a global scale.[citation needed]
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[edit]Disadvantages of virtual teams
Communication deficiency: The biggest disadvantage that any virtual team can suffer from is the lack of efficiency in communication, partly due to constraints in virtual communication mediums. This is also primarily due to the fact that humans communicate better when they are able to communicate with their body language.[50] Inevitably, virtual teams may face obstacles due to restrictions of the Internet which in turn may lead to incorrect assumptions if a message is not laid out clearly. Failure to properly communicate and clearly address messages or emails could to lead to frustration and eventually failure.[citation needed]
Poor leadership and management: Poor leadership can result in the failure of any team, whether virtual or not; however, it becomes a much more prominent problem in virtual teams. Messages must be sent across accurately and clearly. Inability to effectively communicate to members of the team can all greatly affect a project .[51]
Incompetent team members: Virtual teams should only consist of competent and experienced team members due to the distance factor which can overtly affect the timing and completion date of a project. Projects are more likely to fail if the team consists of individuals who are lazy or lack sufficient knowledge to complete their assigned tasks. It only takes one incompetent team member to have a negative effect on the rest of the team.[citation needed]

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Public Interest Litigation
From Wikipedia, the free encyclopedia | This article may need to be wikified to meet Wikipedia's quality standards. Please help by adding relevant internal links, or by improving the article's layout. (September 2011)Click [show] on right for more details.[show] |
In Indian law, Public Interest Litigation (PIL) OR जनहित याचिका means litigation for the protection of the public interest. It is litti introduced in a court of law, not by the aggrieved party but by the court itself or by any other private party. It is not necessary, for the exercise of the court's jurisdiction, that the person who is the victim of the violation of his or her right should personally approach the court. In Public Interest Litigation, the power to file a suit is given to a member of the public by the courts etc through judicially conscious judicial activism.That member of the public can be a NGO, Institution or an individual.In India, Supreme Court, rejecting the criticism of judicial activism, has said the judiciary has stepped in to give directions only because of executive inaction what with laws enacted by Parliament and the State legislatures in the last 63 years for the poor not being implemented properly. Contents [hide] * 1 History * 2 Interference made by Courts in Public Interest Litigations * 3 Frivolous PILs * 4 Empirical study on PIL results * 5 Arguments Against PIL * 6 See also * 7 External links * 8 References |
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[edit]History
The Supreme Court of India in Sunil Batra (II) v. Delhi Administration, 1980 (3) SCC 488 : 1980 SCC (Cri) 777 : AIR 1980 SC 1579 : 1980 CriLJ 1099 has accepted a letter written to the Supreme Court by one Sunil Batra, a prisoner from Tihar Jail, Delhi complaining of inhuman torture in the jail. In Dr. Upendra Baxi (I) v. State of U.P., AIR 1987 SC 191 the court entertained letter sent by the two Professors of Delhi University seeking enforcement of the constitutional right of the inmates in a Protective Home, at Agra who were living in inhuman and degrading conditions. In Miss Veena Sethi v. State of Bihar, 1982 (2) SCC 583 : 1982 SCC (Cri) 511 : AIR 1983 SC 339 the Court treated letter addressed to a Judge of the Court by the Free Legal Aid Committee at Hazaribagh, Bihar as a writ petition. In Citizens for Democracy through its President v. State of Assam and Others, 1995 KHC 486 : 1995 (2) KLT SN 74 : 1995 (3) SCC 743 : 1995 SCC (Cri) 600 : AIR 1996 SC 2193 the Court entertained a letter addressed by Shri Kuldip Nayar, an eminent journalist, in his capacity as President of "Citizens for Democracy" to one of the Judges of the Court complaining of human rights violations of TADA detenues and the same was treated as a petition under Art.32 [1].[2] Prior to the 1980s, only the aggrieved party could approach the courts for justice. However, post 1980s and after the emergency era, the apex court decided to reach out to the people and hence it devised an innovative way wherein a person or a civil society group could approach the supreme court seeking legal remedies in cases where public interest is at stake. Justice P. N. Bhagwati and Justice V. R. Krishna Iyer were among the first judges to admit PIL's in the court.[3] Filing a PIL is not as cumbersome as any other legal case and there have been instances when even letters and telegrams addressed to the court have been taken up as PIL's and heard by the court.[4]
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[edit]Interference made by Courts in Public Interest Litigations
The Bombay High Court on 31 August 2006 directed the broadcasters to give an undertaking that they will abide by the Cable Television Network Act 1995 as well as the court's orders by tomorrow, in view of larger public interest.
A division bench comprising Justices R M Lodha and S A Bubbey were hearing a Public Interest Litigation (PIL) filed by Professor Pratibha Nathani of St Xavier's College alleging that films without certification by the Censor Board for Film Certification (CBFC) allowing 'free public exhibition', were being shown on cable channels, which have a bad impact on children. Hence, such films should not be shown and action be taken against those still running such content on their channels.
The court on 23 August had allowed the cable operators and channels to screen only 'U' and 'U/A' certified films.
However, before that order, the police had taken action against the Multi-system operators and seized their decoders due to which they could not telecast certain channels. Assistant Commissioner of Police Sanjay Apranti told the court that they did not have a problem if the channels provided the cable operators with new decoders.
Also, Zee Television and Star Television networks applied for the declaration in writing that they would abide by the said Act and court orders.
The court also directed seven channels—Star Movies, Star One, Star Gold, HBO, ZEE Movies, AXN and Sony Max—to furnish a list of all the films that they were to screen to the police.
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[edit]Frivolous PILs
Public Interest Litigation is a RULE OF DECLRED LAW by the Courts of Record However, the person or entity filing the petition must prove to the satisfaction of the court that the petition is being filed for a larger public interest and not just as a frivolous litigation by a busy body or for individual or pecuniary gains and profit.
The 38th Chief Justice of India Justice S. H. Kapadia said huge costs would be imposed on litigants filing frivolous public interest litigation (PIL) petitions. His statement was widely welcomed because instances of unscrupulous elements filing PILs to advance personal or pecuniary interest had witnessed an upward trend in recent years. And last year too, a bench of the apex court raised concern over the misuse of PILs. The same bench had also issued a set of guidelines, which it wanted all courts in the country to observe while entertaining PILs.
In a speech in September 2008, Prime Minister Manmohan Singh also expressed concern over the misuse of the PIL: “Many would argue that like in so many things in public life, in PILs too we may have gone too far. Perhaps a corrective was required and we have had some balance restored in recent times.”
Now, in what could result in the most effective tool against frivolous PILs, the Union Ministry of Law and Justice is giving final touches to a law to regulate the PIL. And helping the Ministry in its endeavour is none other than former Chief Justice of India P N Bhagwati, acknowledged as somebody who along with Justice V R Krishna Iyer pioneered the concept of PIL in the country.
Chastising those who move courts with such dubious motives, the judgment said: “This court wants to make it clear that an action at law is not a game of chess. A litigant who approaches the court must come with clean hands. He cannot prevaricate and take inconsistent positions.” Since the Amar Singh petition was vague, not conforming to the rules of procedure and riddled with inconsistencies, the court did not go into his main grievance — infringement of privacy. The only positive outcome of the case was the court’s request to the government to “frame certain statutory guidelines to prevent interception of telephone conversation on unauthorised requests.” In this case, Reliance Infocom acted on a forged request from the police.
In the judgment of Kalyaneshwari vs Union of India, the court deprecated misuse of public interest litigation to wage business battles. A writ petition was filed in the Gujarat High Court seeking the closure of asbestos units, alleging that the material was harmful to humans. The high court dismissed it, stating that the petition was filed at the behest of rival industrial groups that wanted to push their products as substitute for asbestos. Undaunted, a similar petition was then moved in the Supreme Court. The plea was not only dismissed, but the person who mooted it was asked to pay cost of Rs 1 lakh and sit in the court for a whole day.
The judgment said: “The petition lacks bona fide and in fact was instituted at the behest of a rival industrial group, which was interested in banning of the activity of mining and manufacturing of asbestos. A definite attempt was made by it to secure a ban on these activities with the ultimate intention of increasing the demand of cast and ductile iron products as they are some of the suitable substitute for asbestos. Thus it was litigation initiated with ulterior motive of causing industrial imbalance and financial loss to the industry of asbestos through the process of court.”
The court declared that it was its duty in such circumstances to punish the petitioners exercising its power under the Contempt of Courts Act. The court must “ensure that such unscrupulous and undesirable public interest litigation be not instituted in courts of law so as to waste the valuable time of the courts as well as preserve the faith of the public in the justice delivery system.”
“By now it ought to be plain and obvious that this Court does not approve of an approach that would encourage petitions filed for achieving oblique motives on the basis of wild and reckless allegations made by individuals, ie, busybodies,” a Bench of Justices B Sudershan Reddy and SS Nijjar observed in their March 29 judgment released on Thursday. The Bench overruled an Andhra Pradesh High Court decision of April 2010 in which it set aside the services of a retired IPS officer on special duty with the Tirumala Tirupathi temple. The High Court’s decision was on a public interest petition filed by one S Mangati Gopal Reddy, who alleged in court that the IPS officer, P Seshadri, was involved in the loss of “300 gold dollars” from the temple and should not continue in office.The Supreme Court, surprisingly, found that the High Court had decided against Seshadri with very little information about Reddy himself, except that he is an “agriculturist” by profession and a “staunch devotee of Lord Venkateshwara (the temple deity) since childhood”.
“The parameters within which PILs can be entertained have been laid down. The credentials, the motive and the objective of the petitioner have to be apparently and patently aboveboard. Otherwise the petition is liable to be dismissed at the threshold,” the judgment stated. Reasoning as to why it continues to skeptical about a large number of PILs, the Bench speaks for the Supreme Court when it says that “judiciary has to be extremely careful to see that behind the beautiful veil of public interest an ugly private malice, vested interest and/or publicity-seeking is not lurking”.
“This Court (Supreme Court of India) must not allow its process to be abused for oblique considerations by masked phantoms who monitor at times from behind,” it said.
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[edit]Empirical study on PIL results
According to a controversial study by Hans Dembowski, PIL has been successful in the sense of making official authorities accountable to civil society organisations. While this social scientist also found some effect on the ground level, PIL cases dealing with major environmental grievances in the Kolkata agglomeration did not tackle underlying problems such as inadequate town planning. Dembowski's book Taking the State to Court - Public Interest Litigation and the Public Sphere in Metropolitan India was originally published by Oxford University Press in 2001. The publisher, however, soon discontinued distribution because of contempt of court proceedings started by the Calcutta High Court. The author, who claims he was never officially notified by the Court, has since republished the book online with the Germany-based NGO Asia House.[5][6]
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[edit]Arguments Against PIL
A Bench of Justices G.S. Singhvi and A.K. Ganguly pointed out that laws enacted for achieving the goals set out in the Preamble to the Constitution had been extremely inadequate and tardy, and the benefit of welfare measures enshrined in those legislation had not reached millions of poor, downtrodden and disadvantaged sections, nor did efforts to bridge the gap between the haves and have-nots yield the desired result.
Writing the judgment in a case related to sewerage workers, Justice Singhvi said: “The most unfortunate part of the scenario is that whenever one of the three constituents of the state i.e. the judiciary issues directions for ensuring that the right to equality, life and liberty no longer remains illusory for those who suffer from the handicaps of poverty, illiteracy and ignorance, and directions are given for implementation of the laws enacted by the legislature for the benefit of the have-nots, a theoretical debate is started by raising the bogey of judicial activism or overreach.”
The Bench clarified that it deemed it necessary to erase the impression and misgivings among some people that the superior courts, by entertaining PIL petitions for espousing the cause of the poor who could not seek protection and vindication of their rights, exceeded the unwritten boundaries of their jurisdiction. The judges said it was the duty of the judiciary, like that of the political and executive constituents of the state, to protect the rights of every citizen and ensure that everyone lived with dignity.
Such cases may occur in public interest when the victims do not have the necessary consciousness, know-how or resources to commence litigation or his/their freedom to move court has been suppressed or encroached upon. The court can itself take cognisance of the matter and proceed suo motu or cases can commence on the petition of any public-spirited individual or body. Further courts can also take cognisance on the basis of letters written to them or by Newspaper Reports.
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Venture capital financing
From Wikipedia, the free encyclopedia | This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (May 2009) |
Venture capital financing is a type of financing by venture capital: the type of private equity capital is provided as seed funding to early-stage, high-potential, growth companies and more often after the seed funding round as growth funding round (also referred as series A round) in the interest of generating a return through an eventual realization event such as an IPO or trade sale of the company. Contents [hide] * 1 Overview * 2 Venture capital financing process * 2.1 The Seed Stage * 2.1.1 Example * 2.1.2 Risk * 2.2 The Start-up Stage * 2.2.1 Example * 2.2.2 Risk * 2.3 The Second Stage * 2.3.1 Example * 2.3.2 Risk * 2.4 The Third Stage * 2.4.1 Example * 2.4.2 Risk * 2.5 The Bridge/Pre-public Stage * 2.5.1 Example * 2.5.2 Risk * 3 At Last * 4 See also * 5 References * 6 Further reading |
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[edit]Overview
To start a new startup company or to bring a new product to the market, the venture may need to attract financial funding. There are several categories of financing possibilities. If it is a small venture, then perhaps the venture can rely on family funding, loans from friends, personal bank loans or crowd funding.
For more ambitious projects, some companies need more than what mentioned above, some ventures have access to rare funding resources called angel investors. These are private investors who are using their own capital to finance a ventures’ need. The Harvard report[1] by William R. Kerr, Josh Lerner, and Antoinette Schoar tables evidence that angel-funded startup companies are less likely to fail than companies that rely on other forms of initial financing. Apart from these investors, there are also venture capitalist firms (VC firms) who are specialized in financing new ventures against a lucrative[citation needed] return.
When a venture approaches the last one, the venture is going to do more than negotiating about the financial terms. Apart from the financial resources these firms are offering; the VC firm also provides potential expertise the venture is lacking, such as legal or marketing knowledge. This is also known as "smart money".
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[edit]Venture capital financing process
As written in the previous paragraph, there are several ways to attract funding. However in general, the venture capital financing process can be distinguished into five stages; 1. The Seed stage 2. The Start-up stage 3. The Second stage 4. The Third stage 5. The Bridge/Pre-public stage
Of course the stages can be extended by as many stages as the VC firm thinks it should be needed, which is done in practice all the time. This is done when the venture did not perform as the VC firm expected. This is generally caused by bad management or because the market collapsed or a bit of both (see: Dot com boom). The next paragraphs will go into more details about each stage.
The following schematics shown here are called the process data models. All activities that find place in the venture capital financing process are displayed at the left side of the model. Each box stands for a stage of the process and each stage has a number of activities. At the right side, there are concepts. Concepts are visible products/data gathered at each activity. This diagram is according to the modeling technique founded by Professor Sjaak Brinkkemper of the University of Utrecht in the Netherlands.
[edit]The Seed Stage

The Seed Stage
This is where the seed funding takes place. It is considered as the setup stage where a person or a venture approaches anangel investor or an investor in a VC firm for funding for their idea/product. During this stage, the person or venture has to convince the investor why the idea/product is worthwhile. The investor will investigate into the technical and the economical feasibility (Feasibility Study) of the idea. In some cases, there is some sort of prototype of the idea/product that is not fully developed or tested.
If the idea is not feasible at this stage, and the investor does not see any potential in the idea/product, the investor will not consider financing the idea. However if the idea/product is not directly feasible, but part of the idea is worth for more investigation, the investor may invest some time and money in it for further investigation.
[edit]Example
A Dutch venture named High 5 Business Solution V.O.F. wants to develop a portal which allows companies to order lunch. To open this portal, the venture needs some financial resources, they also need marketeers and market researchers to investigate whether there is a market for their idea. To attract these financial and non-financial resources, the executives of the venture decide to approach ABN AMRO Bank to see if the bank is interested in their idea.
After a few meetings, the executives are successful in convincing the bank to take a look in the feasibility of the idea. ABN AMRO decides to put a few experts for investigation. After two weeks time, the bank decides to invest. They come to an agreement of invest a small amount of money into the venture. The bank also decides to provide a small team of marketeers and market researchers and a supervisor. This is done to help the venture with the realization of their idea and to monitor the activities in the venture.
[edit]Risk
At this stage, the risk of losing the investment is tremendously high, because there are so many uncertain factors. From research, we know that the risk of losing the investment for the VC firm is around the 66.2% and the causation of major risk by stage of development is 72%. These percentages are based on the research done by J.C. Ruhnka, and J.E. Young.
[edit]The Start-up Stage

The Start-up Stage
If the idea/product/process is qualified for further investigation and/or investment, the process will go to the second stage; this is also called the start-up stage. At this point many exciting things happen. A business plan is presented by the attendant of the venture to the VC firm. A management team is being formed to run the venture. If the company has a board of directors, a person from the VC firms will take seats at the board of directors.
While the organisation is being set up, the idea/product gets its form. The prototype is being developed and fully tested. In some cases, clients are being attracted for initial sales. The management-team establishes a feasible production line to produce the product. The VC firm monitors the feasibility of the product and the capability of the management-team from theboard of directors.
To prove that the assumptions of the investors are correct about the investment, the VC firm wants to see result of market research to see whether the market size is big enough, if there are enough consumers to buy their product. They also want to create a realistic forecast of the investment needed to push the venture into the next stage. If at this stage, the VC firm is not satisfied about the progress or result from market research, the VC firm may stop their funding and the venture will have to search for another investor(s). When the cause relies on handling of the management in charge, they will recommend replacing (parts of) the management team.
[edit]Example
Now the venture has attracted an investor, the venture need to satisfy the investor for further investment. To do that, the venture needs to provide the investor a clear business plan how to realise their idea and how the venture is planning to earn back the investment that is put into the venture, of course with a lucrative return.
Together with the market researchers, provided by the investor, the venture has to determine how big the market is in their region. They have to find out who are the potential clients and if the market is big enough to realise the idea.
From market research, the venture comes to know that there are enough potential clients for their portal site. But there are no providers of lunches yet. To convince these providers, the venture decided to do interviews with providers and try to convince them to join.
With this knowledge, the venture can finish their business plan and determine a pretty good forecast of the revenue, the cost of developing and maintaining the site and the profit the venture will earn in the following five years.
After reading the business plan and consulting the person who monitors the venture activities, the investor decides that the idea is worth for further development.
[edit]Risk
At this stage, the risk of losing the investment is shrinking, because the uncertainty is becoming clearer. The risk of losing the investment for the VC firm is dropped to 53.0%, but the causation of major risk by stage of development becomes higher, which is 75.8%. This can be explained by the fact because the prototype was not fully developed and tested at the seed stage. And the VC firm has underestimated the risk involved. Or it could be that the product and the purpose of the product have been changed during the development.[2]
[edit]The Second Stage

The Second Stage
At this stage, we presume that the idea has been transformed into a product and is being produced and sold. This is the first encounter with the rest of the market, the competitors. The venture is trying to squeeze between the rest and it tries to get some market share from the competitors. This is one of the main goals at this stage. Another important point is the cost. The venture is trying to minimize their losses in order to reach the break-even.
The management team has to handle very decisively. The VC firm monitors the management capability of the team. This consists of how the management team manages the development process of the product and how they react to competition.
If at this stage the management team is proven their capability of standing hold against the competition, the VC firm will probably give a go for the next stage. However, if the management team lacks in managing the company or does not succeed in competing with the competitors, the VC firm may suggest for restructuring of the management team and extend the stage by redoing the stage again. In case the venture is doing tremendously bad whether it is caused by the management team or from competition, the venture will cut the funding.
[edit]Example
The portal site needs to be developed. (If possible, the development should be taken place in house. If not, the venture needs to find a reliable designer to develop the site.) Developing the site in house is not possible; the venture does not have this knowledge in house. The venture decides to consult this with the investor. After a few meetings, the investor decides to provide the venture a small team of web-designers. The investor also has given the venture a deadline when the portal should be operational. The deadline is in three months.
In the meantime, the venture needs to produce a client portfolio, who will provide their menu at the launch of the portal site. The venture also needs to come to an agreement on how these providers are being promoted at the portal site and against what price.
After three months, the investor requests the status of development. Unfortunately for the venture, the development did not go as planned. The venture did not make the deadline. According to the one who is monitoring the activities, this is caused by the lack of decisiveness by the venture and the lack of skills of the designers.
The investor decides to cut back their financial investment after a long meeting. The venture is given another three months to come up with an operational portal site. Three designers are being replaced by a new designer and a consultant is attracted to support the executives’ decisions. If the venture does not make this deadline in time, they have to find another investor.
Luckily for the venture, with the come of the new designer and the consultant, the venture succeeds in making the deadline. They even have two weeks left before the second deadline ends.
[edit]Risk
At this stage, the risk of losing the investment still drops, because the venture is capable to estimate the risk. The risk of losing the investment for the VC firm drops from 53.0% to 33.7%, and the causation of major risk by stage of development also drops at this stage, from 75.8% to 53.0%. This can be explained by the fact that there is not much developing going on at this stage. The venture is concentrated in promoting and selling the product. That is why the risk decreases.[3]
[edit]The Third Stage

The Third Stage
This stage is seen as the expansion/maturity phase of the previous stage. The venture tries to expand the market share they gained in the previous stage. This can be done by selling more amount of the product and having a good marketing campaign. Also, the venture will have to see whether it is possible to cut down their production cost or restructure the internal process. This can become more visible by doing a SWOT analysis. It is used to figure out the strength, weakness, opportunity and the threat the venture is facing and how to deal with it.
Except that the venture is expanding, the venture also starts to investigate follow-up products and services. In some cases, the venture also investigates how to expand the life-cycle of the existing product/service.
At this stage the VC firm monitors the objectives already mentioned in the second stage and also the new objective mentioned at this stage. The VC firm will evaluate if the management team has made the expected reduction cost. They also want to know how the venture competes against the competitors. The new developed follow-up product will be evaluated to see if there is any potential.
[edit]Example
Finally the portal site is operational. The portal is getting more orders from the working class every day. To keep this going, the venture needs to promote their portal site. The venture decides to advertise by distributing flyers at each office in their region to attract new clients.
In the meanwhile, a small team is being assembled for sales, which will be responsible for getting new lunchrooms/bakeries, any eating-places in other cities/region to join the portal site. This way the venture also works on expanding their market.
Because of the delay at the previous stage, the venture did not fulfil the expected target. From a new forecast, requested by the investor, the venture expects to fulfil the target in the next quarter or the next half year. This is caused by external issues the venture does not have control of it. The venture has already suggested to stabilise the existing market the venture already owns and to decrease the promotion by 20% of what the venture is spending at the moment. This is approved by the investor.
[edit]Risk
At this stage, the risk of losing the investment for the VC firm drops with 13.6% to 20.1%, and the causation of major risk by stage of development drops almost by half from 53.0% to 37.0%. However at this stage it happens often that new follow-up products are being developed. The risk of losing the investment is still decreasing. This may because the venture rely its income on the existing product. That is why the percentage continuous drop.[4]
[edit]The Bridge/Pre-public Stage

The Bridge/Pre-public Stage
In general this stage is the last stage of the venture capital financing process. The main goal of this stage is to achieve an exit vehicle for the investors and for the venture to go public. At this stage the venture achieves a certain amount of the market share. This gives the venture some opportunities; for example: * Hostile take over * Merger with other companies * Keeping away new competitors from approaching the market * Eliminate competitors
Internally, the venture has to reposition the product and see where the product is positioned and if it is possible to attract newMarket segmentation. This is also the phase to introduce the follow-up product/services to attract new clients and markets.
As we already mentioned, this is the final stage of the process. But most of the time, there will be an additional continuation stage involved between the third stage and the Bridge/pre-public stage. However there are limited circumstances known where investors made a very successful initial market impact might be able to move from the third stage directly to the exit stage. Most of the time the venture fails to achieves some of the important benchmarks the VC firms aimed.
[edit]Example
Now the site is running smoothly, the venture is thinking about taking over the competitors’ website happen.nl. The site is promoting restaurants and is also doing business in online ordering food. This proposal is being protested by the investor, because it may cost a lot of the ventures’ capital. The investor suggests a merge instead.
To settle down their differences, the venture requested an external party to investigate into the case. The result of the investigation was a take-over. After reading the investigation, the investor agrees to it and happen.nl is being taken over by the venture. With the take-over of a competitor, the venture has expanded its services.
Seeing the ventures’ result, the investor comes to the conclusion that the venture still have not reach the target that was expected, but seeing how the business is progressing, the investor decides to extend its investment for another year.
[edit]Risk
At this final stage, the risk of losing the investment still exists. However, compared with the numbers mentioned at the seed-stage it is far lower. The risk of losing the investment the final stage is a little higher at 20.9%. This is caused by the number of times the VC firms may want to expand the financing cycle, not to mention that the VC firm is faced with the dilemma of whether to continuously invest or not. The causation of major risk by this stage of development is 33%. This is caused by the follow-up product that is introduced.[5]
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[edit]At Last
As mentioned in the first paragraph, a VC firm is not only about funding and lucrative returns, but it offers also the non-funding issues like knowledge as well as for internal as for external issues. Also what we see here the further the process goes, the less risk of losing investment the VC firm is risking. Stage at which investment made | Risk of loss | Causation of major risk by stage of development | The Seed-stage | 66.2% | 72.0% | The Start-up Stage | 53.0% | 75.8% | The Second Stage | 33.7% | 53.0% | The Third Stage | 20.1% | 37.0% |