Venture Capital Firms in India – An Overview

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!