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Features : The three main features of venture capital are :
- Equity participation : Venture financing is an actual or potential equity participation through direct purchase of shares, options or convertible securities. The object is to make capital gains by selling off the investment once the enterprise becomes profitable.
- Long Term Investment : It is a long-term capital investment. It has to wait for a long-period, say 5 to 10 years to make large profits.
- Participation in Management : The venture capitalist participates continuously in the management of financial unit. This helps him to protect his investment. More than finance, venture capitalist gives his marketing, technology, planning and management skills to the new firm.

Venture Capitalists in India :
The setting up of Risk Capital Foundation by IFCI in 1975 marks the beginning of venture capital in India. In 1976, the Government of India created Technical Development Fund (TDF) in the Ministry of Industry with the assistance of World Bank. Later foreign banks (Grindlays Bank) and Indian Banks (State Bank of India and Canara Bank) entered into the business. Financial Institutions like IFCI, IDBI adn ICICI also set up units.
That's all for now friends. In our next post we shall discuss about the SEBI guidelines for Venture Capital Funds. Happy Reading :)
The setting up of Risk Capital Foundation by IFCI in 1975 marks the beginning of venture capital in India. In 1976, the Government of India created Technical Development Fund (TDF) in the Ministry of Industry with the assistance of World Bank. Later foreign banks (Grindlays Bank) and Indian Banks (State Bank of India and Canara Bank) entered into the business. Financial Institutions like IFCI, IDBI adn ICICI also set up units.
That's all for now friends. In our next post we shall discuss about the SEBI guidelines for Venture Capital Funds. Happy Reading :)
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Nice Logo Great Tribute to Sachin
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