The Impact of Venture Capital on Indian Firms’ Performance and Growth, and the Role of the Government and Financial Equity

Proceedings of The 2nd International Conference on New Trends in Management, Business and Economics

Year: 2021

DOI:

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The Impact of Venture Capital on Indian Firms’ Performance and Growth, and the Role of the Government and Financial Equity

Jayaprada Putrevu ; K Lubza Nihar

ABSTRACT: 

Over the last decade, one of the most significant trends in business has been the emergence of venture funding. It has had a significant influence on the global market in regards of career creation, new commodities, competitive vitality, and entrepreneurial mindset improvement. This article investigates the factors that influence the success of venture capital (VC) businesses in India and how the VC can positively impact a firm’s growth. Previous study has focused on the firm level, where the favorable impact of venture capital on development, business development, and income development has been demonstrated. Small and medium-sized firms (SMEs) are seen to have capacity for innovation and the ability to develop new market possibilities. Venture capital may financially fund business ventures that contribute to economic growth, as well as govern and stimulate the development of SMEs. It is clear from several Indian VC deals that VC investors like to invest collectively. In other words, collaborative investment, co-investment, or syndication is a widespread practice in the Indian venture capital business. As component of the control system, VCs use this method to reduce future uncertainty. Furthermore, there is empirical evidence for the VC financing in India and how different country-level factors can have an effect on VC financing firm’s growth.

keywords: venture funding; venture capital; sme; investments; control systems.