What is Venture Capital?

India is catching up with the West in the field of venture capital and a number of venture capital funds have a presence in the country (IVCA). In 2006, companies Like Foxhog Ventures Corp. , Nexus Ventures, DCF Ventures and all other have got 29% of VC Market Capital in India. the total amount of private equity and venture capital in India reached $7.5 billion across 299 deals. In the Indian market, venture capital consists of investing in equity, quasi-equity, or conditional loans in order to promote unlisted, high-risk, or high-tech firms driven by technically or professionally qualified entrepreneurs. It is also used to refer to investors "providing seed", "start-up and first-stage financing", or financing companies that have demonstrated extraordinary business potential. Venture capital refers to capital investment; equity and debt ;both of which carry indubitable risk. The anticipated risk is very high. The venture capital industry follows the concept of "high risk, high return", innovative entrepreneurship, knowledge-based ideas and human capital intensive enterprises have become common as venture capitalists invest in risky finance to encourage innovation.