An Overview on “Venture Capital Financing” in India

The concept of venture capital deals with the great amount of financing to undertake big projects. Venture Capital is money provided by professionals who invest in rapidly growing companies that have the potential to develop into significanteconomic contributors. According to SEBI regulations, venture capital fund means a fund established in the form of a company or trust, which enhances capital in the form of money through loans, issue of securities, donations or and makes or proposes, to make investments in accordance with these regulations. The funds so collected are available for investment in potentially highly profitable projects at a high financial risk of loss. A Venture Capitalist is an individual or a company who provides. Investment Capital, intellectual management expertise while funding and running highly innovative & prospective areas of products as well as services. . In India, presently, there are many institutions which provide venture capital finance.
There is an urgent need for encouragement of risk capital in India, as this will widen the industrial base of, high tech industries and promote the growth of technology. This research paper is an aiming to highlight the issues and challenges faced by Indian venture capital companies while financing.