VCs are a respite in tough times

Author: Neha Dhemija

Venture Capitalists are ready to take the risks despite the very negative conditions for the rest of the investments. This is proved by the values which have not undergone much variation before and after the financial downturns. For the quarter that ended on 30 Sep, such deals were 49 that spanned a total amount of 290 USD. This is 36% higher in terms of volume and 15% as per the values, compared to the similar period of last year.

Venture Capitalists are the ones who spot businesses that are in nascent stage of growth but are sure of coming up with good returns. VCs then provide funds to these start-ups and in turn can have a fixed percentage of profits or a say in the management of the company. Majority of these funds come from foreign investors.
	Though, VCs are usually thought to fuel the businesses which are in initial stages, however, with time the utility of this concept has expanded. In some cases, the already running business can also have funds from these. Last year $288 million was the total funding in the form of VCs and PEs. So, the Indian start-ups need not spend sleepless nights over the financial turmoil as they can avail the benefit VCs have to offer.