A Comprehensive Study on Venture Capital and Private Equity Markets in India

Abstract

As the world economy enters the 21st century, the merits of technical newlineprogress and the instant diffusion of an enormous amount of information offer newlineincredible opportunities. At the same time, the ability to exploit and make use of the newlinenew tools remains in part limited, and also unevenly divided. Information and newlinecommunication technology, research and development, skills upgrading and the newlineaccumulation of human capital are all recognized to matter for economic and societal newlineperformances. Yet raising RandD or educating a greater number of individuals is not newlinesufficient to ensure the success of innovation in these spheres in an ever more newlinecompetitive environment. newlineLarge companies continue to dominate in research and development (RandD), newlineand are no doubt generally stronger and more likely to survive and prosper than newlinesmall and medium-sized enterprises (SMEs). Still, societies cannot rely solely on newlinewhat was established in the past. New products and ventures need to be developed. newlineOrganizational change and entrepreneurship should be embraced. newlineGreater efforts are needed in many countries to remove obstacles to newlineexperimentation and risk taking in the economy. This applies particularly in regard to newlinethe early stages of business formation and commercialization of new technologies. newlineThe kind of financing most commonly highlighted in this context is venture capital, newlinewhich has been shown to matter greatly for business renewal and economic growth. newlineVenture capital is not the only kind of financing that is important in this context, newlinehowever. Both formal and informal financing play a distinct role in the early stages, newlineand both government institutions and markets influence what can be achieved by newlinevarious kinds of actors. newlineWhereas many countries have recently adopted new policies to support the newlineprovision of seed and venture capital, it is important that venture capital issues are newlinenot addressed in isolation. At the same time, most attention has been paid to newlinedevelopments in the United States, owing to which its strong and dynamic industry newlinehas tower