Venture Capital Funding: Global and Indian Experiences

Venture capital is a form of equity financing in which an investor actively participates in the venture being financed. A venture capital firm manages funds provided by investors and directs them to the most promising ventures, mainly in the form of equity. Venture capital funding is an increasingly important area for entrepreneurial ventures in both industrialized and developing countries. Venture capital has become especially important in India in developing the information technology sector. This book, which includes 13 case studies, provides an account of the theory and practice of venture capital firms, offering insight into the operation of venture capital funding in India. The book examines the contracts between venture capital firms and entrepreneurs to determine what provisions are included in these contracts, such as appraisal, screening, self-selection, monitoring, incentivizing, and divestment. Experiences of other countries in managing venture capital operations are also examined.