A study of exit strategies of venture capital firms in India

Abstract

For any country or economy to grow, the existence of a robust financial ecosystem newlineis essential which is capable of creating new companies. Today, world has great demand newlinefor innovation and it has become imperative to create an ecosystem to promote and newlinetransform the entrepreneurial ideas into revenue generating companies. For many people, newlineventure capital is the money for start-ups and great ideas. Generally, private investor or newline angelsand#8223; are known as principal source of funds for start-ups and great ideas. Many times, newlinethe venture capital companies also define venture capital as money for expansion of newlineexisting businesses too. It is also defined as money invested in small and medium newlineenterprises which are giving minority shareholding in the business and irrevocable right to newlineacquire it. Over a period of time the concept of venture capital has been shifted from newlinetechnology oriented manufacturing organizations to being very close of private equity newlineclassand#8223; for unlisted new companies. The young and new companies face challenges of newlineequity gap (Wetzel, 1983; Barth, 1999). The complexities in the new business increase newlinewith the development of new idea in to a growing business (Klofsten, 1992; Greiner newline1972). The venture capital firms provide both funding and competence to such young newlinefirms with great potential of capital growth. newline