VENTURE CAPITAL FINANCING
Venture capital institutions which emerged the world over to fill gaps in the conventional financial focused on new entrepreneurs, commercialization of new technologies and support to and medium enterprises in the manufacturing and the service sectors. Over the years, the of venture capital has undergone significant changes. The modus operandi has shifted technology oriented manufacturing organisations to being close to private equity class new companies in all sectors of the economy, irrespective of the nature. They also maintain a close rapport and a bands on approach in nurturing investments their association with the assisted investment companies as active partners rather than as investors.
Although the development of the venture capital started in the US in the mid fifties, venture institutions are of fairly recent origin in India. Before their emergence, the development institutions partially played the role of venture capitalists by providing assistance for direct participation to ventures in the pre-public issue stage and by selectively supporting new initial steps for the institutionalization of venture capital in India were taken by investment in November, 1988, when guidelines were issued for setting up of venture capital companies (VCFs/VCCs) for investing in unlisted companies and to avail of a concessional of capital gains tax.
The various facets of venture capital institutions financing discussed in this Chapter. The aspects of such organisations are examined in Section 1. Section 2 presents a brief t of the venture capital scenario in India. The main points are summarized in Section 3.