Strategic role of venture capital in developing entrepreneurship in a country like India

What is the Strategic role of venture capital in developing entrepreneurship in a country like India?

Venture Capital is private of equity fund which is provided by investors to the Startup companies and their business ventures; Venture Capitalist are having wealth and fund to invest to the needy startup; Being investor they can offer management support to managerial assistance and sometime technical support also;

Key Highlights of Venture Capitalization in India  

• Evolution driven decision making done by venture capitalist and there will be long term goals associations;
• Generally Venture Capital initiated for Small size start up with good and innovative business idea and have high ratio of profit earning in short span of time; 
• Venture Capitalist can buy the share of company and can become financial partner;
• VC is High Risk Investment and there are chance of failure of project, 
• VC has high tech projects which have high returns 
• VC has repayment schedules by time duration decided 

 Importance of Venture Capital 

• Empower the new product with innovative technology 
• Promote the export driven businesses and can earn more foreign exchange 
• VC can provide not only finance but also management + technical + operational supports 
• VC can refine sick company and can assist + support to regain their performance 

In India, IFCO was the first organization to initiate the venture capital and it establish the Risk Capital Foundation in 1975; It provide the seed capital to all small and risky projects; VC got recognition first time in budget of 1987 in India; India has huge potential to develop the venture capital investment scope as post the liberalization and globalization people have rich per head income and have good savings and wealth to invest and other side there are good number of entrepreneurial skilled people are encouraged to do businesses via their own start up and Being entrepreneur they must have below points by consideration by the Investor; 

• Entrepreneur should have efficient + innovative + unique + long term business plan 
• The Business Team must have knowledge + skill sets and experience for their own startup business for some duration 
• The Business Team should present the Business Plan with certain vision + mission and core competencies of their team and business they are managing for last couple of years or new start up go along 
• Business Team and Investor should have common goal like growth and development of certain business idea 
• Business Team must have appropriate and enough information about Industry + sector + competition and economy of country
• Business Team must have the detail finance and funding details with time frame and sportive document and understanding of requirement of investment with utilization of those funds  
• Business Team must introduce their team and heading department to the investor with KRA [ Key Responsibilities Area ] 
• Business Team must present their business idea in service business or product business or concept business to the investment; they must know the demand and supply side of those product, service and concept in market 
• Business Team to ensure the VC investor that they will follow all evolution and funding stage define by mutually and they will track all the details, performance indicators and business activities;