Venture capital firms in
India provide funds/capital that is committed for longer
term to assist unquoted agri-tech companies flourish. Venture capital
helps if you are a start up, wish to expand your business, buy a part of
your parent company, turn around or revive a firm, buy a company.
PE firms that are focused on agri-tech domain are mostly interested in companies that are capable of displaying high potential for growth in five to seven years. In addition, such companies should also ensure that they have a great and experienced team with an ability to transform the business goals into a reality.
Inclination towards Agribusiness Companies
Of late venture capital funds in India, raised by PE firms had exhibited great interest on the Agribusiness companies, and have invested $126 million in nine Indian companies in this sector in the initial six months of year 2013. It is nearly 75% more compare to $72 million invested in six companies in the same time last year, as per the stats from Venture Intelligence (research service firm).
Benefits to Small Company
The major advantage that a small company raising venture capital is that in case you obtain funds from a lender, irrespective of your business’s success or failure, the lender owns a legal right to all of the interest on the loan along with the repayment interest of the capital. But in venture capital, the shareholders earning is driven by companies’ profit and growth.
Role in Indian Economy
Companies under venture capital firms are developed to be more profitable and efficient that directly contributes to the mainstream economy of India too. It also motivates the managers and staffs as the management receives carried interest, including part of profits. Overall it is the combine benefit of employees, business and also the country. In brief, the small companies that are about to collapse due to insufficient funding, can become a promising and growing company, contributing to the economy of India, after the intervention of PE firms.
Synopsis
Venture capital is a respite to small companies that could not fetch bank loans and are in dire need of funds for growth! Ultimately it is the win-win situation for all – the small company, the venture capital firm in India!
PE firms that are focused on agri-tech domain are mostly interested in companies that are capable of displaying high potential for growth in five to seven years. In addition, such companies should also ensure that they have a great and experienced team with an ability to transform the business goals into a reality.
Inclination towards Agribusiness Companies
Of late venture capital funds in India, raised by PE firms had exhibited great interest on the Agribusiness companies, and have invested $126 million in nine Indian companies in this sector in the initial six months of year 2013. It is nearly 75% more compare to $72 million invested in six companies in the same time last year, as per the stats from Venture Intelligence (research service firm).
Benefits to Small Company
The major advantage that a small company raising venture capital is that in case you obtain funds from a lender, irrespective of your business’s success or failure, the lender owns a legal right to all of the interest on the loan along with the repayment interest of the capital. But in venture capital, the shareholders earning is driven by companies’ profit and growth.
Role in Indian Economy
Companies under venture capital firms are developed to be more profitable and efficient that directly contributes to the mainstream economy of India too. It also motivates the managers and staffs as the management receives carried interest, including part of profits. Overall it is the combine benefit of employees, business and also the country. In brief, the small companies that are about to collapse due to insufficient funding, can become a promising and growing company, contributing to the economy of India, after the intervention of PE firms.
Synopsis
Venture capital is a respite to small companies that could not fetch bank loans and are in dire need of funds for growth! Ultimately it is the win-win situation for all – the small company, the venture capital firm in India!
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