VENTURE CAPITAL IN INDIA: GROWTH & DEVELOPMENT

Abstract

This dissertation report contains a detail study and analysis of the Indian venture Capital industry, in order to give insights into various aspects that is associated with the topic to become capable for making assumptions relating to future of the industry and give suggestions towards improvement of the industry as a whole. The Venture capital has become very popular and is considered the bloodline of emerging industries in Indian financial markets. Venture capital, on a nutshell is basically the money (also known as seed capital) provided at a very early phase by either VC firms or an individual upon consultation with the management after scrutinizing the potential of an idea possessing the capability to turn into big thing in future. It is one of the convenient method of raising capital for new startups. The industry (venture Capital) in India has gained a lot of popularity in India and the kind of idea that Indian entrepreneurs are capable of generating has served as the main impetus for investors/professionals. Along with the monetary resources, Venture capitalists also guide entrepreneur by providing help and support in formalizing and reinforcing their ideas to turn into a feasible business. For promoting innovation, enterprise, conversion of scientific technology, ideas (specifically based on knowledge) into a commercial production, there should be very high focus level for promotion and development of venture capital activity. India had achieved a huge success in the information technology area which shows the tremendous growth opportunity of knowledge based industries. Looking at the current situation, IT sector has faced a slowdown because of which other sectors have also been considered by venture capitalists and such interest by venture capitalists into other sectors is very much essential for reducing dependency on one sector only overall economic development of a country. India has abundant technical manpower and entrepreneurs but there is shortage of capital. Therefore venture capital holds greater significance in India. Startup companies’ especially smaller ones can create more jobs. So, Venture capital helps in generation of employment mostly for those people who are skilled and educated.