Of late, the Venture capital (VC) funding is gaining significant prominence in the Indian economy. Start-up firms are increasingly coming forward to mark their presence and our economy has proved to offer a favorable environment for their growth.
What & why Venture capitalist?
The unavailability of the steady fund has always been a major hindrance in converting the dreams of many bright minds into reality. But now investors are coming forward to provide adequate funding to start-up firms and small businesses. They invest money in exchange for equity in those companies, once they see a future growth potential.
Venture capital is not just entrepreneur focussed; rather it is equally benefitting the investors and the economy as a whole. In addition to the financial support, the entrepreneurs also get valuable guidance in key situations, based on the experience and expertise of the venture capitalists. This has always proved to be significantly helpful in the critical stages of business growth. Also, the network that the venture capitalists had already built within the business community is always an added advantage for start-ups to get an introduction easily.