Venture Capital is defined as providing seed, start-up and first stage
finance to companies and also funding expansion of companies that have
demonstrated business potential but do not have access to public
securities market or other credit oriented funding institutions. The
venture capital industry in India has really taken off in. Venture
capitalists not only provide monetary resources but also help the
entrepreneur with guidance in formalizing his ideas into a viable
business venture. With technology and knowledge based ideas set to drive
the global economy in the coming millennium, and given the inherent
strength by way of its human capital, technical skills, cost competitive
workforce, research and entrepreneurship, India can unleash a
revolution of wealth creation and rapid economic growth in a sustainable
manner.
Venture capital can play a more innovative and developmental role in a
developing country like India. It could help the rehabilitation of sick
units through people with ideas and turnaround management skills. A
large number of small enterprises in India become sick even before the
commencement of production. Venture capitalists could also assist small
ancillary units to upgrade their technologies so that they could be in
line with the developments taking place in their parent companies.
The study of Venture Capital trends in India will be helpful in
understanding the concept of Venture Capital and to understand the
importance of Venture Capital in developing countries like India. The
study will also throw light on the major institutions providing Venture
Capital in India. The review of trend of Venture Capital deals in India
will help the VC firms to identify the developing sectors in the
country. The report will also help the start up companies in identifying
the Venture Capital firms which can provide financing for their growth.