In India, a revolution is ushering in a new economy, where in major investments are being made in the knowledge based industry with substantially low investments in land, building, plant and machinery. The asset/collateral-backed lending instruments adopted for the hard for the hardcore manufacturing industries, are proving to be inadequate for the knowledge – based based industries that very often start with just an idea. The only way to finance such industries is through Venture Capital. Venture Capital is instrumental in bringing about industrial development, for it exploits the vast and untapped potentialities and promotes the growth of the knowledge – based industries worldwide. In India too, it has become popular in different parts of the country. Thus, the role of venture capitalist is very crucial, different, and distinguishable to the role of traditional finance as it deals with others‟ money. In view of the globalization; Venture Capital has turned out to be a boon to both bo th business and industry. There is, thus, an intense need to be exploit to the maximum its potential as a new means, this report deals with the concept of Venture Capital, with particular reference to India. The report includes all facts, rules, and regulations regarding Venture Capital.
The term venture capital comprises of two words that is, “Venture” and “Capital”. Venture is a course of processing, the outcome of which is uncertain but to which is attended the risk or danger of “loss”. “Capital” means recourses to start an enterprise. To connote the risk and adventure of such a fund, the generic name Venture Capital was coined.
Venture capital is considered as financing of high and new technology based enterprises. It is said that Venture capital involves investment in new or relatively untried technology, initiated by relatively new and professionally or technically qualified entrepreneurs within adequate funds. The conventional financiers, unlike Venture capitals, mainly finance proven technologies and established markets. However, high technology need not be pre-requisite for venture capital. Venture capital has also been described as „unsecured risk financing‟. The relatively high risk of venture capital is compensated by the possibility of high returns usually through substantial capital gains in the medium term. Venture capital in broader sense is not solely an injection of funds into a new firm, it is also an input of skills needed to set up the firm, design its marketing strategy, organize and manage it. Thus it is a long term association with successive stages of company‟s development under highly risky investment conditions, with distinctive type of financing appropriate to each stage of development. Investors join the entrepreneurs as copartners and support the project with finance and business skills to exploit the market opportunities.
Venture capital is not a passive finance. It may be at any stage of business/production cycle, that is, start up, expansion or to improve a product or process, which are associated with both risk and reward. The Venture capital makes higher capital gains through appreciation in the value of such investments when the new technology succeeds. Thus the primary return sought by the investor is essentially capital gain rather than steady interest income or dividend yield. definition of Venture Venture capital capital isThe most flexible definition “The support by investors of entrepreneurial talent with finance and business skills to exploit market opportunities and thus obtain capital gains.” Venture capital commonly describes not only the provision of startup finance or „seed corn‟ capital but also development capital for later stages of business. A long term commitment of funds is involved in the form of equity investments, with the aim of eventual capital gains rather than income and active involvement in the management of customer‟s business.
High Risk
By definition the Venture capital financing is highly risky and chances of failure are high as it provides long term startup capital to high risk-high reward ventures. Venture capital assumes four types of risks, these are:
Management risk o
Market risk o
Product may fail in the market.
Product risk o
Inability of management teams to work together.
Product may not be commercially viable.
Operation risk o
Operations may not be cost effective resulting in increased cost decreased gross margins.
High Tech
As opportunities in the low technology area tend to be few of lower order, and hi-tech projects generally offer higher returns than projects in more traditional areas, venture capital investments are made in high tech. areas using new technologies or producing innovative goods by using new technology. Not just high technology, techno logy, any high risk ventures where the entrepreneur has conviction but little capital gets venture finance. Venture capital is available for expansion of existing business or diversification to a high risk area. Thus technology financing had never been the primary objective but incidental to venture ven ture capital. Equity Participation & Capital Gains
Investments are generally in equity and quasi equity participation through direct purchase of shares, options, convertible debentures where the debt holder has the option to convert the loan instruments into stock of the borrower or a debt with warrants to equity investment. The funds in the form of equity help to raise term loans that are cheaper source of funds. In the early stage of business, because dividends can be delayed, equity investment implies that investors bear the risk of venture and would earn a return commensurate with success in the form of capital gains.
Participation In Management Venture capital provides value addition by managerial support, monitoring and follow up assistance. It monitors physical and financial progress as well as market development initiative. It helps by identifying key resource person. They want one seat on the company‟s board of directors and involvement, for better or worse, in the major decision affecting the direction of company. This is a unique philosophy of “hands on management” where Venture capitalist acts as complementary to the entrepreneurs. Based upon the experience other companies, a venture capitalist advise the promoters on project planning, monitoring, financial management, including working capital and public issue. Venture capital investor cannot interfere in day today management of the enterprise but keeps a close contact with the promoters or entrepreneurs to protect his investment.
Length of Investment Venture capitalist help companies grow, but they eventually seek to exit the investment in three to seven years. An early stage investment may take seven to ten years to mature, while most of the later stage investment takes only a few years. The process of having significant returns takes several years and calls on the capacity and talent of venture capitalist and entrepreneurs to reach fruition.
Illiquid Investment Venture capital investments are illiquid, that is, not subject to repayment on demand or following a repayment schedule. Investors seek return ultimately by means of capital gains when the investment is sold at market place. The investment is realized only on enlistment of security or it is lost if enterprise is liquidated for unsuccessful working. It may take several years before the first investment starts to locked for seven to ten years. Venture capitalist understands this illiquidity and factors this in his investment decisions.
OVERVIEW Over the last 18 months, the venture capital industry around the globe has experienced a welcome acceleration in the mature investment hotbeds – United States, Europe and Israel – and in the emerging venture capital hotbeds China and India. Global venture capital investment in 2008 reached US 35.2 Billion dollar, the highest level since 2001. The acceleration has been bolstered by the increasing globalization of both venture capital funds and venture backed companies and a substantial investor focus on the emerging sectors. As the dotcom market of late 1990 has gathered the momentum, venture capital stood at the nexus of hype and hope. In 2000 they poured nearly 95 billion dollars into mostly young, untested companies, but the bubble burst the market for the new stock issued tanked and by 2003 venture capital funding dwindled to 19 Billion. The VC showed the signs of stabilizing as the industry were bolstered by the 2005‟s strong 4 th quarter, the financing exceeds the 21.5 billion mark invested in venture backed companies reaching 22 billion, while that was far below 2000‟s peak, it represents a more substantial pace of funding for entrepreneurs and investors.
HISTORY AND EVOLUTION Prior to the World War II the source of capital of entrepreneurs everywhere was either the government, government sponsored institutions meant to invest in such ventures, of informal investors (today termed as “Angels”) that usually has some prior relationship to the entrepreneur. In general throughout history private banks quite reasonably have been unwilling to lend money to the newly established firm because of the high risk and lack of collateral. After World War II in US a set of intermediaries emerged who specialized in investing in fledging firms having the potential for extremely rapid growth. From its earliest beginnings of the US East Coast venture capital industry gradually expanded and became an increasingly professionalized institution. During this period the locus of venture capital industry shifted from New York and Boston on the East Coast to Silicon Valley on the West Coast. By the mid 1980‟s the ideal typical venture capital firm was based in Silico n Valley and invested largely in Electronics and lesser sum devoted to bio medical technologies. The two other major concentrations have been Boston and New York City. In both Europe and Asia, there are significant concentrations of venture capital in London, Israel, Hong Kong, Taiwan, and Tokyo. In the U.S., the government has played a role in the development of venture capital, though, for the most part, it was indirect. The indirect role, i.e.,
the general policies that also benefited the development of the venture capital industry, was probably the most significant. Some of the most important of these were:
The U.S. government generally practiced sound monetary and fiscal policies ensuring relatively low inflation with a stable financial environment and currency.
U.S. tax policy, though it evolved, has been favorable to capital gains, and a number of decreases in capital gains taxes may have had some positive effect on the availability of venture capital.
With the exception of a short period in the 1970s, U.S. pension funds have been allowed to invest prudent amounts in venture capital funds.
The NASDAQ stock market, which has been the exit ex it strategy of choice for venture capitalists, was strictly regulated and characterized by increasing openness thus limiting investor's fears of fraud and deception.
This created a general macroeconomic environment of transparency and predictability, reducing risks for investors. Put differently, environmental risks stemming from government action were minimized -- a sharp contrast to most developing nations. Another important policy has been a willingness to invest heavily and continuously in university research. This investment funded generations of graduate students in the sciences and engineering. From this research has come trained personnel and innovations; some of who formed firms that have been funded by venture capitalists. U.S. universities particularly, MIT, Stanford, and UC Berkeley played pla yed a particularly salient role. The most important direct U.S. government involvement in encouraging the growth of venture capital was the passage of the Small Business Investment Act of 1958 authorizing the formation of small business investment corporations (SBICs).This legislation created a vehicle for funding small firms of all types. The legislation was complicated, but for the development of venture capital the following features were most significant:
It permitted individuals to form SBICs with private funds as paid-in capital and then they could borrow money on a two – to – one ratio initially up to$300,000, i.e., they could use up to $300,000 of SBA-guaranteed money for their investment of $150,000 in private capital.
There were also tax and other benefits, such as income and a capital gains pass-through and the allowance of a carried interest as compensation.
The SBIC program became one that many other nations either learned from or emulated. The SBIC program also provided a vehicle for banks to circumvent the Depression-Era laws prohibiting commercial banks from owning more than 5 percent of industrial firms. The banks' SBIC subsidiaries allowed them to acquire equity in small firms. This made even more capital available to fledgling firms, and was a significant source of capital in the 1960s and 1970s. The final investment format permitted SBICs to raise money in the public market. For the most part, these public SBICs failed and/or were liquidated by the mid 1970s.After the mid 1970s, with the exception of the bank SBICs, the SBIC program was no longer significant for the venture capital industry. The SBIC program experienced serious problems from its inception. One problem was that as a government agency it was very bureaucratic having many rules and regulations that were constantly changing. Despite the corruption, something valuable also occurred. Namely, and especially, in Silicon Valley, a number of individuals used their SBICs to leverage their personal capital, and some were so successful that they were able to reimburse the program and raise institutional money to become formal venture capitalists. The SBIC program accelerated their capital accumulation, and as important, government regulations made these new venture capitalists professionalize their investment activity, which had been informal prior to entering the program. Now-illustrious firms such as Sutter Hill Ventures, Institutional Venture Partners, Bank of America Ventures, and Menlo Ventures began as SBICs. The historical record also indicates that government action can harm venture capital. The most salient example came in 1973 when the U.S. Congress, in response to widespread corruption in pension funds, changed Federal pension fund regulations. In their haste to prohibit pension fund abuses, Congress passed the Employment Retirement Income Security Act (ERISA) making pension fund managers criminally liable for losses incurred in high-risk investments. This was interpreted to include venture capital funds; as a result pension managers shunned venture capital nearly destroying the entire industry. This was only reversed after active lobbying by the newly created National Venture Capital Association (NVCA). In 1977, it succeeded in starting a gradual loosening process that was completed in 1982. The new interpretation of these pension fund guidelines contributed to first a trickle then a flood of new money into venture capital funds. The most successful case of the export of Silicon Valley-style venture capital practice is Israel where the government played an important role in encouraging the growth of o f venture capital.
Evolution of VC Industry in India
The first major analysis on risk capital for India was reported in 1983. It indicated that new companies often confront serious barriers to entry into capital market for raising equity finance which undermines their future prospects of expansion and diversification. It also indicated that on the whole there is a need to revive the equity cult among the masses by ensuring competitive return on equity investment. This brought out the institutional inadequacies with respect to the evolution of venture capital. In India, the Industrial finance Corporation of India (IFCI) initiated the idea of VC when it established the Risk Capital Foundation in 1975 to provide seed capital to small and risky projects. However the concept of VC financing got statutory recognition for the first time in the fiscal budget for the year 1986-87. The Venture Capital companies operating at present can be divided into four groups:
Promoted by All – India Development Financial Institutions Promoted by State Level Financial Institutions Promoted by Commercial banks Private venture Capitalists
Promoted by all India development financial institutions The IDBI started a VC fund in 19876 as per the long term fiscal policy of government of India, with an initial capital of Rs. 10 cr which raised by imposing a cess of 5% on all payments made for the import of technology know- how projects requiring funds fromrs.5 lacs to rs 2.5 cr were considered for financing. Promoter‟s contribution ranged from this fund was available at a concessional interest rate of 9% ( during gestation period)which could be increased at later stages. The ICICI provided the required impetus to VC activities in India, 1986, it started providing VC finance in 1998 it promoted, along with the Unit Trust of India (UTI)Technology Development and Information Company of India (TDICI) as the first VC company registered under the companies act, 1956. The TDICI may provide financial assistance to venture capital undertakings which are set up by technocrat entrepreneurs, or technology information and guidance services.
The risk capital foundation established by the industrial finance corporation of India (IFCI) in 1975, was converted in 1988 into the Risk Capital and Technology Finance company (RCTC) as a subsidiary company of the IFCI the RCTC provides assistance in the form of conventional loans, interest – free free conditional loans on profit and risk sharing basis or equity participation in extends financial support to high technology projects for technological up gradations. The RCTC has been renamed as IFCI Venture Capital Funds Ltd.(IVCF)
Promoted by State Level Financial Institutions In India, the State Level financial institutions in some states such as Madhya Pradesh, Gujarat, Uttar Prades, etc., have done an excellent job and have provided VC to a small scale enterprises. Several successful entrepreneurs have been the beneficiaries of the liberal funding environment. In 1990, the Gujarat Industrial Investment Corporation, promoted the Gujarat Venture Financial Ltd.(GVFL) along with other promoters such as the IDBI, the World Bank, etc. The GVFL provides financial assistance to businesses in the form of equity, conditional loans or income notes for technologies development and innovative products. It also provides finance assistance to entrepreneurs. The government of Andhra Pradesh has also promoted the Andhra Pradesh Industrial Development Corporation (APIDC) venture capital ltd. to provide VC financing in Andhra Pradesh.
Promoted by commercial banks Canbank Venture Capital Fund, State Bank Venture Capital Fund and Grindlays bank Venture Capital Fund have been set up by the respective commercial banks to undertake vc activities. The State Bank Venture Capital Funds provides financial assistance for bought – out out deal as well as new companies in the form of equity which it disinvests after the commercialization of the project. Canbank Venture Capital Fund provides financial assistance for proven but yet to be commercially exploited technologies. It provides assistance as sistance both in the form of equity and conditional loans.
Private Venture Capital Funds Several private sector venture capital funds have been established in India such as the 20th Century Venture Capital Company, Indus Venture Capital Fund, Infrastructure Leasing and Financial Services Ltd .Some of the companies that have received funding through this route include:
Mastek, on of the oldest software house in India Ruskan software, Pune based software consultancy SQL Star, Hyderabad-based training and software development consultancy Satyam infoway, the first private ISP in India Hinditron, makers of embedded software Selectia, provider of interactive software selectior Yantra, ITLInfosy‟s US subsidiary, solution for supply chain management Rediff on the Net, Indian website featuring electronic shopping, news,chat etc.
, a research firm focused on venture capital and private equity deals in India, says there are 43 angel networks, 111 venture capital investors and 37 incubators in the country. We have come a long way from the days when bootstrapping-falling back on savings, fixed assets, and money from friends and family-was the only option. Nonetheless, this is still the most preferred starting point for a majority of businesses. The trouble with bootstrapping is that it usually means scrimping on capital, which, in turn, curtails the start-up's flexibility and ability to grow. There is also a very real risk of fledgling entrepreneurs overleveraging themselves. A less risky way to raise seed capital is to pool resources with a group of people who have shared interests and work together to escalate a business idea to at least a prototype. However, if you are sure of the scalability of your venture and are not obsessive about retaining independent control, private funding could be the best option. This comes in various forms, each typically catering to different stages of a start-up, such as the seed stage, early stage and growth stage. Here are some of the options.
These are high net worth individuals , who invest in a start-up in return for a minority share in the business. They are usually serial entrepreneurs or heads of major multinational firms. They can also be a group of individuals who pool in funds to invest. The key networks include Mumbai Angels, Indian Angel Network, Hyderabad H yderabad Angels, Pune Tech Angels, Business Angel Network of Kerala and East Angels.
How angel investing works Angels typically come into the picture at a start-up's seed stage, when the business idea is just a concept. The business plan itself is very iffy. So what draws an angel's attention? Business ideas that have the potential to generate solid returns, as well as the person behind it, but they are basically in it for altruistic reasons.
Since all start-ups are risky propositions at this stage, angels typically don't put in a huge sum. "We invest in start-ups that are unlikely to draw the interest of venture capitalists since the size of investment is rather small, from 50 lakh to 5 crore, depending on the angel approached and the business idea. Only in special circumstances will the deal size stretch to 10 crore," says Saurabh Srivastava, co-founder , Indian Angel Network. In return, they take a 20-30 % stake in your firm.
Benefits Angels are patient investors; they typically remain invested for 7-8 years. They review the progress regularly and are even willing to go back to the drawing board, if required . No wonder Sasha Mirchandani , co-founder of Mumbai Angels, claims that angel-backed companies tend to do better than the ones that directly approach venture capital investors. You can also expect quick access to funds. It can take anywhere between a day and three months to close a deal.
Drawbacks The concept of angel funding is still at a nascent stage in India, so they are difficult to find. You need to boast the right contacts/professional network to bag such funding , besides having the right credentials . Says Srivastava: "Factors like the entrepreneur's reputation, integrity, clarity of mind and his response to feedback are important for me. He should also be a good listener." Mirchandani, on the other hand, is more concerned with the capital efficiency of a business idea. This is why so many IT start-ups , typically both capital-efficient and easily scalable, find favour with angel investors. However, as Nishant Verman, associate, Canaan Partners, stresses , easy funding is still difficult to come by. "India is no Silicon Valley , where a super angel like Mike Maples will invest in a product when it's no more than a blueprint sketched on a notepad, as in the case of Twitter," he warns.
Hot sectors "Currently, angels are interested in funding education, mobile value-added services and apps, innovations in healthcare and rural entrepreneurship ," says N Muthuraman , director, RiverBridge Investment Advisors, a boutique financial advisory firm.
For the uninitiated, venture capital firms invest their shareholders' money in start-ups in return for a minority share in the compan y.
How venture capital works They typically invest at an early stage of a start-up ; unlike angels, precious few are willing to back an idea at the concept stage. This is when the fatter cheques of venture capitalists come into play. Venture capital firms have been known to help start-ups organise the next round of funding as well. Arvind Modi, associate vice-president (investments), Gujarat Venture Finance Ltd, which provides venture capital to tech start-ups says : "We like ventures where the product or service is established and the start-up requires funding for commercialisation or scaling up of operations." However, many firms, such as Accel India Venture Fund, Sequoia Capital, Seedfund, Ncubate Capital , Nexus India Capital and Draper Fisher Jurvetson (DFJ), are increasingly willing to provide seed stage funding, but let us consider the thumb rules. A typical player is willing to put $2-8 million ( 10-40 crore) in return for a 10-40 % stake in the start-up , say industry insiders. If the investment amount is higher, the venture capital firm may choose to take a minority stake and invest the balance in convertible instruments , such as debentures and preference shares. If you are planning to approach a venture capital firm, be prepared to answer questions on the kind of bond you share with your business partner or the rapport with your team. Don't balk. Seeing their investment going down because of a silly feud between the core team members in a start-up is the last thing they want. Also, these investors usually don't believe in oneman shows; it is risky if everything depends on one person. "Unless an entrepreneur is very experienced, he won't be able to deal with the challenges posed by a start-up single-handedly ," adds Verman. You will also need to have an exit strategy. The basic purpose of any venture capital investor is to sell his stake for a profit after 4-5 years. So, cover options for the next round of investment, typically from a private equity player, the possibility of an IPO or a potential buyer, along with an approximate exit valuation, in the presentation.
Benefits This is practically the only option that gives entrepreneurs access to deep pockets at a time when they are trying to build the company. Private equity's fatter cheques are typically reserved for mature companies . You also get expert help and access to the firm's entire network.
Drawbacks "Venture capital funds in India require proof of concept and decent revenue visibility before investing ," says Muthuraman. In addition , each player will have sectoral preferences. Also, a typical player expects an internal rate of return of 25% on the investment in 4-5 years. "To meet the expectation, the company's compounded annual growth should be over 25%," says Modi. A business with low scalability may not be able to provide them with the desired returns on their investment and, hence, will be rejected outright. The safest bets are the ones where there is a business and professional connect. "It is a highly dilutive way of raising capital. It suits companies that have very high scalability and don't need too much recurring capital," advises Muthuraman. Also, be prepared to wait for 3-6 months to close a deal.
Hot sectors The most sought-after sectors by this segment are biotech, mobile value-added services, education healthcare, e-commerce , IT-ITeS , and green technology.
This is a medium-term loan that is exclusively provided to companies backed by venture capital firms.
How venture debt works The USP here is that no collateral is required to be eligible. Instead, venture debt providers evaluate applicants on the basis of a startup's fundamental enterprise value , assessing how it will grow and, thereby, pegging its future cash flow and ability to repay the loan. You can expect funding of 2.5-20 crore, depending on the growth stage of company and the nature of requirement. Says Ajay Hattangdi, managing director, SVB India Finance: "An experienced founding team, a credible business plan and a solid venture capital investor base are some factors that we would consider in our assessment." He adds that the interest rates are fixed for the tenure of the loan and are competitive compared with rates that SME clients can usually obtain from banks.
Benefits
Venture debt financing is structured specifically to support seed and early-stage start-ups . hence, it understands that a venture is prone to volatility early in life and, consequently , provides more flexibility to entrepreneurs. According to Muthuraman, this is a useful tool for an entrepreneur wanting to minimise his equity dilution early on as it can bridge the gap between the funds provided by the venture capitalist and his actual requirement. These funds come with the least amount of restrictions and can be utilised for any business initiative, from basic operations and working capital to supporting capital expenditures and making acquisitions.
Drawbacks Apart from the interest on the loan, venture debt providers typically require an equity kicker, or shares of your company, to compensate for the higher risk taken. "The kicker enables us to get a share in the upside if the company does well. It also enables us to keep our loan interest rate down to a minimum ," says Hattangdi.
This report, which contains in-depth study of Venture Capital Industry in India, is made with an intension to get through all the aspects related to the topic and to become able to make some suggestion at the industry. Future of any economy depends on the success of the new technologies and industries and services supporting these technologies. In India, where human, particularly technical and entrepreneurial are abundant and there is shortfall of capital, venture capital has a greater significance. It is observed that new companies, particularly the smaller ones, create more jobs. Venture capital helps employment generation particularly for educated and skilled workers. The financing of domestically developed technologies in general and those developed by the new generation of entrepreneur has always been a problem in both developed and developing countries. This is because domestically developed technologies, either by organized sector or o r the unorganized sector, are usually perceived p erceived to be uncertain by b y the conventional financial system. In India, since independence, a number of financial institutions have emerged to cater to the needs of the industrial entrepreneurs and these have mainly remained as debt providing organizations. In India, risk finance has always been in short supply. The initial equity for any venture has to be raised by the promoters from their own sources and public financial institutions are not of much help. To overcome this problem venture capital financing made a small beginning in India since 1988.Venture capitalists have been catalytic in bringing forth technological innovation in USA. A similar act can also be performed in India. As venture capital has good scope in India for three reasons: First: The abundance of talent is available in the country. The low cost high quality Indian workforce that has helped the computer user‟s world wide inY2K project is demonstrated asset. Second: A good number of successful Indian entrepreneurs in Silicon Valley should have a demonstration effect for venture capitalists to invest in Indian talent at home. Third: The opening up of Indian economy and its integration with the world economy is providing a wide variety of niche market for Indian entrepreneurs to grow and prove themselves.
The topic deals with a specific aspect of business – especially small business and the provision of risk- capital so essential to their birth, survival and profitable growth. It is not concerned with the banking instruments for short term finances e.g. overdrafts and loans. The topic concentrates on the provision of permanent or equity type capitals i.e. venture capital. In the broad terms, venture capital means long term risk equity finance where the primary reward for its provider is eventual capital gain and a nd not the interest/dividend yield. India is on the threshold of a high technology revolution and new entrepreneurial growth. Slow growth of significant institutional set up to provide much needed venture capital has hampered the growth of the economy. A radical change in the existing framework of venture capital financing in India is a must to achieve high economic growth.
The study provides that the maturity if the still nascent Indian Venture Capital market is imminent. Venture Capitalists in Indian have notice of newer avenues and regions to expand. VCs have moved beyond IT service but are cautious in exploring the right business model, for finding opportunities that generate better returns for their investors. In terms of impediments to expansion, few concerning factors to VCs include; unfavorable political and regulatory environment compared to other countries, difficulty in achieving successful exists and administrative delays in documentation and approval. In spite of few non attracting factors, Indian opportunities are no doubt promising which is evident by the large number of new entrants in past years as well in coming days. Nonetheless the market is challenging for successful investment. Therefore Venture capitalists responses are upbeat about the attractiveness of the India as a place to do the business.
1. http://www.scribd.com/doc/9130227/A-Report-on-Venture-Capital-Industry-in-India 2. http://en.wikipedia.org/wiki/Venture_capital 3. http://www.brighthub.com/office/entrepreneurs/articles/77501.aspx 4. http://www.indiavca.org/ven_india.aspx\ 5. http://timesofindia.indiatimes.com/business/india-business/How-to-fund-a-startup/articleshow/11773236.cms 6. http://articles.timesofindia.indiatimes.com/keyword/venture-capital
