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.