Venture Capitalism.

What Is gauge Capital?

Venture heavy(p) is money provided by schoolmasters who rank alongside draw offment in young, rapidly growing companies that suck up the potential to develop into significant frugal contributors. Venture jacket is an important source of equity for start-up companies.

Professionally managed enter capital firms principally are tete-a-tete partnerships or closely-held corporations origined by private and public pension funds, endowment funds, foundations, corporations, wealthy individuals, foreign investors, and the venture capitalists themselves.

Venture capitalists generally:

- Finance new and rapidly growing companies

- buy equity securities

- Assist in the development of new products or services

- Add value to the company through active participation

- channelize nobleer risks with the expectation of higher rewards

- Have a long orientation

When considering an investment, venture capitalists carefully screen the technical and business merits of the proposed company. Venture capitalists only invest in a small role of the businesses they review and have a long-term perspective. They also actively work with the companys management, especially with contacts and strategy formulation.

Venture capitalists mitigate the risk of commit by developing a portfolio of young companies in a single venture fund. Many times they co-invest with other professional venture capital firms. In addition, many venture partnerships manage multiple funds simultaneously.



For decades, venture capitalists have nurtured the growth of Americas high technology and entrepreneurial communities resulting in significant job creation, economic growth and international competitiveness. Companies such as Digital Equipment Corporation, Apple, federal Express, Compaq, Sun Microsystems, Intel, Microsoft and Genentech are famous examples of companies that received venture capital early in their development. (Source: National Venture Capital connectedness 1999 Yearbook).

In India, these funds are governed by the Securities and Exchange Board of India (SEBI) guidelines. consort to this, venture capital fund means a fund established in the form of a...

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