In India, recent three years have seen a prominent expansion of the venture capital industry, as almost a dozen funds in the denomination of billions of dollars have been invest in local startups.
Changing Investment Perception
Many of these initiatives saw a great hike in the valuations of companies and big global venture capital companies are also stepping into the bandwagon to invest on fast-growing businesses in multiple industries like consumer internet to enterprise software, online retail and healthcare.
These activities are making venture capital firms in India the frontrunner in the Indian risk capital sector, which has been ruled by private equity used to trigger growth in more settled companies and industries.
All these activities have changed the perception of Indian venture capital companies in India. Whereas growth capital funds have failed to provide the returns similar to what peers in other Asian countries have.
Changing Investment Perception
Many of these initiatives saw a great hike in the valuations of companies and big global venture capital companies are also stepping into the bandwagon to invest on fast-growing businesses in multiple industries like consumer internet to enterprise software, online retail and healthcare.
These activities are making venture capital firms in India the frontrunner in the Indian risk capital sector, which has been ruled by private equity used to trigger growth in more settled companies and industries.
All these activities have changed the perception of Indian venture capital companies in India. Whereas growth capital funds have failed to provide the returns similar to what peers in other Asian countries have.
A Win-Win Situation for Indian Startups
This increased venture capital activity will surely offer benefits to entrepreneurs, who can derive better value for their ventures, specifically in industries like consumer internet and mobile technology.
To provide minimum return of double or 3 times of capital invested would be the biggest challenge for all these funds. With more business-driven regime in place, many investors hope that the best is yet to come in this industry or venture capital.
Synopsis
This sudden surge in venture capital investment and growing expectation by the small industry businesses and startups is surely going to help them expand their wings to new heights and they can prove to be a contributing partner in the Indian mainstream economy.
