Volume : 2, Issue : 6, JUN 2016

VENTURE CAPITAL FINANCING –A BLESSING FOR ENTREPRENEURS

Nidhi Aggarwal

Abstract

Venture Capital is a significant innovation of 20th century.it was originated and popularised in USA in 60's. Venture Capital refers to the investment of capital in relatively high risk enterprise. The investor in such a case is known as Venture Capital Firm (VCF) or venture capitalist and the business enterprise involving risk where investment is to be made is known as Venture Capital Undertaking (VCU).
The present paper tries to focus on the importance of venture capital financing for those entrepreneurs who have anew, innovative idea but no money to convert that idea into reality. This paper discusses the advantages of venture capital financing and the must- haves or requirements which an entrepreneur must fulfil if he wants to raise funds through venture capital. According to a research, onlyone or two ideas out of hundred are selected for funding by venture capital firms. There is a huge scope for venture capital financing in India, the need is to understand its value , how to raise it keeping in mind the regulations made by Indian Government and other factors which have been discussed in this paper.

Keywords

Venture Capital, risk, Venture Capital Undertaking (VCU), Venture Capital Firm (VCF) or venture capitalist, capital gain.

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