Venture Capital Funds in India In India, venture capital funds (VCFs) can be categorized into the following groups:-

Benefits of VC over other Funding Methods Venture capital has a number of advantages over other forms of finance:

  • It injects long term equity finance which provides a solid capital base for future growth.
  • The venture capitalist is a business partner, sharing both the risks and rewards. Venture capitalists are rewarded by business success and the capital gain.
  • The venture capitalist is able to provide practical advice and assistance to the company based on past experience with other companies which were in similar situations.
  • The venture capitalist also has a network of contacts in many areas that can add value to the company, such as in recruiting key personnel, providing contacts in international markets, introductions to strategic partners, and if needed co-investments with other venture capital firms when additional rounds of financing are required.