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  • Q1) Discuss The Importance of Venture Capital Scenario in India? A1)

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    A Srinivas
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    Venture capital is an important source of financing for new, high-growth companies and startups in India that have the potential for profitability but cannot access traditional forms of funding. It provides capital to businesses with large, upfront needs and high risks/returns. Venture capital evolved in India in the 1980s as analyses found that new companies faced barriers entering capital markets and raising equity, hindering their expansion, and that returns on equity investments needed to be competitive to develop the equity culture. Venture capital helps fill financing gaps for entrepreneurial ideas and high-potential firms.

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    Venture capital is an important source of financing for new, high-growth companies and startups in India that have the potential for profitability but cannot access traditional forms of funding. It provides capital to businesses with large, upfront needs and high risks/returns. Venture capital evolved in India in the 1980s as analyses found that new companies faced barriers entering capital markets and raising equity, hindering their expansion, and that returns on equity investments needed to be competitive to develop the equity culture. Venture capital helps fill financing gaps for entrepreneurial ideas and high-potential firms.

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    7 views1 page

    Q1) Discuss The Importance of Venture Capital Scenario in India? A1)

    Uploaded by

    A Srinivas
    Venture capital is an important source of financing for new, high-growth companies and startups in India that have the potential for profitability but cannot access traditional forms of funding. It provides capital to businesses with large, upfront needs and high risks/returns. Venture capital evolved in India in the 1980s as analyses found that new companies faced barriers entering capital markets and raising equity, hindering their expansion, and that returns on equity investments needed to be competitive to develop the equity culture. Venture capital helps fill financing gaps for entrepreneurial ideas and high-potential firms.

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    121823601005

    Q1) Discuss the importance of venture capital Scenario in


    India?
    A1) Venture Capital refers to the finance provided by
    Venture Capitalists, who invest in relatively new, high
    growth companies or start ups that have a potential to
    grow and develop into highly profitable ventures. It has
    high-risk and high-return characteristics. Therefore, it
    acts as an important source of finance for
    entrepreneurs with new ideas.

    Venture Capital is the most suitable form of funding for


    companies and for businesses having large up-front
    capital requirements which have no other cheap
    alternatives.

    Venture Capital in India:-

    Evolution of Venture Capital:- In 1983, the first analysis was reported


    on risk capital in India. It indicated that new companies often face barriers
    while entering into the capital market and also for raising equity finance
    which weakens their future expansion and growth. It also indicated that on
    the whole, there is a need to assess the equity cult by ensuring competitive
    return on equity investment. This all came out as institutional inadequacies
    and resulted in the evolution of Venture Capital.

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