Venture capital financing in India: Prospects and challenges

Abstract

The study aims to analyze the Venture Capital financing scenario in India, in terms of growth, geographical dispersion, sectoral analysis, and the economic environment relevant to venture capital industry during the years (2007-17. The study finds that India is undergoing a paradigm shift in terms of Venture Capital financing particularly in IT/ITES sector, which register a phenomenal growth of 240% during the period of study. The study brings out that the Indian market attracted Venture Capital funds from even the competitor economies like China. The study also finds clear evidence of spatial proximity effect that the investments are concentrated in certain regions.