If you are planning to
establish, expand or grow your brand new business you must be looking for the
company or individual who can take the risk of investing money on your
business. Any bank will probably deny providing loan for your ventures, you
being a new and inexperienced player.
This is where venture capital firms in India come into picture. They are often willing to accept a
risky investment, on the basis of the business plan you have presented before
the firm and have proven how the business will succeed.
What is Venture
Capital Firm
It’s a group of investors
who receive income from wealthy individuals who are keen on growing their
wealth. They take the money and invest it in more risky businesses. As the investments
are risky, these venture capital firms take a small share in the invested
company. This small sharing is worth it to the enterprises, as they are not
able to receive the funds needed from any other source.
How Venture
Capital Companies in India Works
These firms work under a particular investment model. This investment profile is in the form of a document that defines the types of businesses the firm is ready to invest in. Thus by targeting their investments to specific types of businesses; like Omnivore Partners that invests in startup agricultural technology companies in India to improve farm productivity, enhance agro sustainability and seek transformation of Indian agriculture; the companies can learn the ropes of a specific industry, and thus in future can decide better investment plans based on their experience. These venture capital funds in India not only support startup businesses but also offer address expansion financing needs of promising businesses. Albeit, it is rare, as the growing and successful businesses can get the bank loans.
When a venture capital firm gets the money from the investors, it puts the money in a fund, which is then invested in various companies, expecting that the companies will repay the money in nearly three to seven years. When the invested company takes their business to the public and begins to selling bonds and stocks, the money is paid back to the venture capital firm, along with interest.
Synopsis
Venture capital firms are great
source of funds for those promising startup businesses that cannot get any funds
from otherwise. There are several venture capital companies in India, like omnivore partners that can help you establish or expand your business. If you approach
them, they like your business plan, you may find the financer for your
business. So, if you have any business plan ready, it’s time to take action,
but ensure that you approach the right VC firm for venture capital funds to
take your business to the next level!
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