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Venture finance and Indian small industry – can they ever meet?
Formal venture capital funds – as opposed to investment in the businesses of friends and family commonplace in India – have been in existence for several years now. Selection procedures for proposed ventures are extremely tight, and although sometimes one-third of investeebusinesses fail, the small proportion that succeed can make overall profits for the venture capital companies. Not surprisingly, in seeking prospects for high growth, Indian venture companies avoid investing in small businesses and micro-enterprises. This article describes the origins of venture
capital in India, and suggests that when governments intervene to promote small enterprises they should also consider encouraging venture capital to invest in them.
Formal venture capital funds – as opposed to investment in the businesses of friends and family commonplace in India – have been in existence for several years now. Selection procedures for proposed ventures are extremely tight, and although sometimes one-third of investee
businesses fail, the small proportion that succeed can make overall profits for the venture capital companies. Not surprisingly, in seeking prospects for high growth, Indian venture companies avoid investing in small businesses and micro-enterprises. This article describes the origins of venture
capital in India, and suggests that when governments intervene to promote small enterprises they should also consider encouraging venture capital to invest in them.
businesses fail, the small proportion that succeed can make overall profits for the venture capital companies. Not surprisingly, in seeking prospects for high growth, Indian venture companies avoid investing in small businesses and micro-enterprises. This article describes the origins of venture
capital in India, and suggests that when governments intervene to promote small enterprises they should also consider encouraging venture capital to invest in them.
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