Previous

Page - 2

Venture capital is another sector, which has seen a phenomenal rise. Design thinking and innovation are the new mantras for entrepreneurs, and venture capitalists are ready to roll out the cash for people brave enough to pursue their dreams. Venture capitalists generally take a long-term view of the company.
Venture capitalists invest in these new innovative ideas and are willing to take greater risks for potentially higher returns. Till a year back, most of the VC funding was mainly focused in and around the IT and IT Services sector, but this is undergoing a rapid change. Venture capitalists have realized that they must broaden their perspective beyond the traditional avenues and strive to diversify into other rapidly growing areas such as retail, real estate and infrastructure and media.

Among the major players in the VC space are Angel Investment Group, Citigroup Venture Capital and a horde of other local VC Funds. Venture capital funds suffered a major setback during the dotcom bust, but have since been on a comeback trail with a steady rise. One of the major factors driving growth and influencing investments in India is the economic policy.

Strong improvements in corporate performance, powered through productivity gains and ongoing economic reforms will tend to have a multiplier effect and act as further growth drivers.

India today represents a huge opportunity for Private Equity Funds and Venture Capitalists, which simply cannot be overlooked and with the Indian economy firing on all cylinders and showing no signs of a slowdown, everyone who is a someone will be looking to have a slice of the pie.

India today is amongst the most favored destinations for investments and with a large young population, vast diversity, vibrant culture, and a booming economy, there are no obstacles on the road to success.

The Economist summed up this essence of India in few words: -

"India has a dynamism which has never been seen before."

The Economist, October 2005.

Concluded.

* Contributed by: -
Yash V. Khajanchi,
PGDM - 1,
L. N. Welingkar Institute of Management, Mumbai.