Role of Venture Capital in Promotion Startups in India: An Empirical Study

Abstract

The capital amount provided by professionals firms to invest is called venture capital, this fund is provided to new startup companies, and young ventures that have the potential to grow or are rapidly growing in the market. VC is a form of equity finance particularly designed to fund high risk and reward projects. Many steps and efforts are taken by Indian government to overcome issues related to financing. One of the most popular step taken by Indian government is Startup India. The capital money provided to newly setup companies is called as venture capital because of the reason of higher risk and insecurity in newly startup companies. India’s venture capital industry is flourishing and is expected to fill the gap between capital requirement of technology and startup enterprises that are based on knowledge along with the funds provided by traditional institutions like banks. Venture capital provides funds to firms, the skills which is required to set up company, designing of marketing strategies, management, and organizational skills for new venture. The sample size of the study was 197 respondents. The data analysis was performed with the help of t-test and mean.