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The Role of Venture Capital in the Indian Startup Ecosystem

Book Title: Emerging Trends in Commerce and Management

Editor:  Dr. Nilesh Anute

ISBN:  978-81-979197-7-0

Chapter: 19

DOI: https://doi.org/10.59646/emc19/255

Authors: 

Mrs. Sadhana Ganesh Awate, Assistant Professor, Sinhgad Institute of Business Administration and Computer Application, Lonavala, Maharashtra, India.
Mrs. Aditee Huparikar- Shah, Assistant Professor, Indira College of Engineering and Management, Pune, Maharashtra, India.

Learning Objectives

This chapter aims to provide readers with a comprehensive understanding of the role of venture capital (VC) in the Indian startup ecosystem. Readers will gain insights into the historical evolution of venture capital in India, from its inception during the economic liberalization of the 1990s to its current state, characterized by significant investments in technology and innovation. The chapter will elucidate the structure of the venture capital ecosystem, highlighting key players, funding stages, and government initiatives that support startups. Readers will explore the multifaceted impact of venture capital on startups, including access to capital, strategic support, and the fostering of innovation and growth. The chapter will address the challenges and risks associated with venture capital, such as high failure rates, regulatory hurdles, and valuation issues.  

References

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  2. Schertler, A., Tykvov´a, T., 2011. Venture capital and internationalization. Int. Bus.Rev. 20 (4), 423–439.
  3. Terleckyj, N.E., 1980. What do R & D numbers tell us about technological advance? Am. Econ. Rev. 70 (2), 55–61.
  4. Tong, T.W., Li, Y., 2011. Real options and investment mode: Evidence from corporate venture capital and acquisition. Organization Sci. 22 (3), 659–674.
  5. Tushman, M.L., Anderson, P., 1986. Technological discontinuities and organizational environments. Administrative Science Quarterly, pp. 439–465.
  6. Riyanto, Y.E., Schwienbacher, A., 2006. The strategic use of corporate venture financing for securing demand. J. Banking Fin. 30 (10), 2809–2833.