Venture Capital in India
CHALLENGES AHEAD FOR VENTURE CAPITAL FINANCING IN INDIA
Abstract
The main objective of the paper is to depict the challenges faced by Venture Capital Financing firms. Venture Capital is money provided by professionals who invest and manage young rapidly increasing companies that have the probable to develop into significant economic contributors. The Government of India in an attempt to bring the nation at par and above the developed nations has been promoting venture capital financing to new, innovative concepts & ideas, liberalising taxation norms providing tax incentives to venture firms, giving a support to the conception of local pools of capital and holding training sessions for the emerging VC investors. To highlight the Prospects of Venture Capital financing in India.
Dr.G.Renuka HOD (Finance)
The BIPD Business School, Ameerpet and Prof G.Ramakrishna Reddy
Principal and correspondent
Sri Ramakrishna Degree and P.G. College, Nandyal
CHALLENGES AHEAD FOR VENTURE CAPITAL FINANCING IN INDIA
Introduction to venture capital
Venture Capital is a form of "risk capital". In other words, capital that is invested in a project (in this case - a business) where there is a substantial element of risk relating to the future creation of profits and cash flows. Risk capital is invested as shares (equity) rather than as a loan and the investor requires a higher "rate of return" to compensate him for his risk.
Venture capital provides long-term, committed share capital, to help unquoted companies grow and succeed. If an entrepreneur is looking to start-up, expand, buy-into a business, buy-out a business in which he works, turnaround or revitalize a company, venture capital could help do this. Obtaining venture capital is substantially different from raising debt or a loan from a lender. Lenders have a legal right to interest on a loan and repayment of the capital, irrespective of the success or failure of a business. Venture capital is invested in exchange for
Abstract
The main objective of the paper is to depict the challenges faced by Venture Capital Financing firms. Venture Capital is money provided by professionals who invest and manage young rapidly increasing companies that have the probable to develop into significant economic contributors. The Government of India in an attempt to bring the nation at par and above the developed nations has been promoting venture capital financing to new, innovative concepts & ideas, liberalising taxation norms providing tax incentives to venture firms, giving a support to the conception of local pools of capital and holding training sessions for the emerging VC investors. To highlight the Prospects of Venture Capital financing in India.
Dr.G.Renuka HOD (Finance)
The BIPD Business School, Ameerpet and Prof G.Ramakrishna Reddy
Principal and correspondent
Sri Ramakrishna Degree and P.G. College, Nandyal
CHALLENGES AHEAD FOR VENTURE CAPITAL FINANCING IN INDIA
Introduction to venture capital
Venture Capital is a form of "risk capital". In other words, capital that is invested in a project (in this case - a business) where there is a substantial element of risk relating to the future creation of profits and cash flows. Risk capital is invested as shares (equity) rather than as a loan and the investor requires a higher "rate of return" to compensate him for his risk.
Venture capital provides long-term, committed share capital, to help unquoted companies grow and succeed. If an entrepreneur is looking to start-up, expand, buy-into a business, buy-out a business in which he works, turnaround or revitalize a company, venture capital could help do this. Obtaining venture capital is substantially different from raising debt or a loan from a lender. Lenders have a legal right to interest on a loan and repayment of the capital, irrespective of the success or failure of a business. Venture capital is invested in exchange for
References: 2. Brealey Richard A., & Myers Stewart C. (2000). 'Principles of Corporate Finance ', Tata Mc Graw Hill, New Delhi. 3 4. ICFAI Reader, Jan. 2004. 5