Venture Capital Funds and Firms in India for Startups

You may have read the news about “India tops China in number of tech venture capital deals”. This is a clear sign of rising opportunities in India. India gets venture capital (VC) funds in the first quarter of 2015 than China in the number of deals. When India saw 69 deals happening in the first quarter, China got only 66. This is a report according to CB Insights, which is a New York-based firm that tracks VC funding.

Main advantages of Venture Capital are:- provide large sum of equity finance, bring wealth and expertise to your company, easier to secure future funding from other sources, business is not obligated to repay the money. The  Venture Capital also have some disadvantages. This is a lengthy and complex process. You may have to pay for legal and accounting fees in the deal negotiation stage. Another issue, is, investors became part owners of your business. 

Venture Capital

Venture Capital is simply the financial capital provided to early-stage, high-potential, growth startup companies. Venture Capital fund earns money bye owning equity in the companies it invests in. They usually select  biotechnology and IT. Just after the, seed funding round, venture capital investment occurs. 

Venture capital is a type of good private equity. The method is attractive for  new companies with limited operating history. Venture capitalists have great control over company decisions and a significant portion of the company’s ownership or value. Venture capital related to job creation also (approx 2% of US GDP).

Venture Capital Funds and Firms in India for Startups

Venture Capital is Best for :-

  • New companies with limited operating history
  • Companies too small to raise capital in the public markets
  • Companies have not reached the point to secure a bank loan or complete a debt offering

Venture capitalists assist company at four stages in the development. This includes 1. Idea generation, 2. Start-up, 3. Ramp up and 4. Exit. To get Venture capital, private companies need to meet venture capital firms and other private equity investors. This can be done via investor conferences and symposia and summits. You can also choose some private online networks which are emerging to provide support.

6 Stages of Venture Funding 

  • Seed funding
  • Start-UP
  • Growth
  • Second Round
  • Expansion
  • Exit of Venture Capitalist

Venture Capitalist firms affected by factors like Business situation, type of industry, local/national wide operators, public sale, growth rate of company etc. Important Positions at venture capital firms include Venture partners, Principal, Associate, Entrepreneur-in-residence etc. 

Main features of Venture capital are long time horizon, lack of liquidity, high risk, high tech, equity participation and capital gains and participation in management. Methods of Venture financing includes:- equity, conditional loan, income note, participating debentures, quasi equity etc. 

List of venture capital companies in India

  • Accel Partners India
  • Artheon Ventures
  • Artiman Ventures
  • August Capital Partners
  • BlueRun Ventures
  • Blume Ventures
  • Jaarwis Accelerator
  • DFJ India
  • Epiphany Ventures
  • Gray Ghost Ventures
  • Helion Venture Partners
  • IFCI Venture Capital Funds
  • Incube Connect Fund
  • India Innovation Investors
  • InfraCo Asia Development Pte Ltd.
  • Inventus (India) Advisory Company
  • JAFCO Asia
  • Lightbox Ventures
  • Lightspeed ventures
  • Netz Capital
  • Nexus India Capital
  • Nirvana Venture Advisors
  • Ojas Venture Partners
  • Reliance Venture
  • SAIF Partners
  • Saama Capital
  • Sequoia Capital
  • Srijan Capital
  • Tuscan Ventures
  • Trident Capital
  • Veddis Ventures
  • VentureEast
  • Lambtech Ventures
  • ACA Private Equity Trust
  • Aditya Birla Private Equity Trust
  • Akruti City Venture Capital Fund
  • ACA Private Equity Trust
  • Aureos India Fund
  • Qualcomm Ventures

About Staff Reporter

Content is protected by Copyright. We will allow only article sharing through social medias. Content should not be reproduced without our written sanction.

Leave a Reply

Your email address will not be published.