A Study on Venture Capital Financing in India

A Study on Venture Capital Financing in India

Author Name : Sowndarya Nadiminti , Ch. Deepthi Reddy

ABSTRACT

Finance said to be a key factor in industrial development of country. Venture Capital is an external source of finance to the entrepreneurs. Venture Capital Finance in India has grown significantly since last few years. Earlier, India had only few Financial Institutes. With the addition of Venture Capital Institutes, the country financing opportunities are expanded notably. And in India the size and quality of business enterprises has increased. Venture Capital Financing in India is available to all companies that deal with information technology, manufacturing products, and also modern services. Venture Capital is the main source of equity to start-up companies. Venture Capitalists are people or businesses who share financial resources from high-net-worth individuals, corporate insurance companies etc., to invest in high risk–high return ventures that are unable to source funds from regular channels like banks and capital markets. Venture Capitalists not only provide financial resources but also help the entrepreneur with guidance in formalizing their idea into applicable business venture with existing resources or import technology. Key words: Venture Capital, Financing, India, Venture Capitalist, Entrepreneurs.